Oil, precious metals higher on session

Crude oil prices hit another new high at $126.98 per barrel in midday trade in New York after reports, later denied, that Iran will cut oil production.

Meanwhile, the International Energy Agency cut its global demand growth forecast and reported that distillates stockpiles are down in developed nations while the US Senate voted to stop adding oil to that nation’s strategic reserves.

Heating oil hit a new record in New York as well at $3.7146 per gallon on the IEA report.

June contracts for West Texas Intermediate crude fell back from the new record in afternoon trade but still ended up $1.57 to $125.80 per barrel on the New York Mercantile Exchange while Brent crude for June delivery gained $1.15 to $124.06 per barrel.

Nymex June gasoline was up 4 cents to $3.21 per gallon after hitting a record high of $3.2275 per gallon earlier in the day, while June heating oil ended 14 cents higher to $3.70 per gallon after hitting its new high.

Precious metals prices were higher Tuesday after the US dollar gained on the euro and other currencies on new data showing that retail sales were up 0.5 percent in the US in April when automobile sales are excluded.

June gold dropped $14.70 to $870.20 per troy ounce in New York, while July silver was down 40 cents to $16.83 per troy ounce and July platinum plummeted $49.90 to $2,073.40 per troy ounce.

Among base metals, July copper dropped 2 cents to $3.73 per pound in New York while three-month copper was down $25 to $8,235 per tonne in London, but zinc was at $2,300 per tonne in late afternoon trade in London after going as high as $2,340 per tonne earlier on worries about lost smelting capacity due to the earthquake in China.

Grains prices were mixed with soybeans bucking a general downward trend when they added 38 cents to $13.80 per bushel on the Chicago Board of Trade on the possibility that some US farmers could plant corn instead.

CBOT July corn was down 7 cents to $6.07 per bushel while July wheat was 10 cents lower to $7.95 per bushel and July rough rice dropped 50 cents to $22.24 per 100 pounds.

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