WTI drops over $1 in New York

June contracts for West Texas Intermediate crude oil, which expire next week, closed down $1.32 per barrel to $122.90 after a day of volatile trade that saw prices go as high as $126.64 per barrel and as low as $120.75 per barrel.

Brent crude for June delivery was also lower, dropping 76 cents to $121.10 per barrel on the ICE Futures Europe exchange in London.

Nymex June natural gas also saw declines, falling nearly 27 cents to $11.33 per 1,000 cubic feet after inventories grew by 93 billion cubic feet last week, while Nymex June gasoline was down 4 cents to $3.14 per gallon while June heating oil was nearly 2 cents lower to $3.60 per gallon.

Base metals prices were mostly higher on Thursday, with some helped higher by issues related to the major earthquake in China earlier in the week.

Three-month aluminium was up $72 to $3,010 per tonne in London on worries that power shortages due to the earthquake could interrupt supplies by shutting down smelters, while zinc added $30 to $2,315 per tonne as two provinces shut down smelters for safety inspections.

Elsewhere in base metals, July copper gained 6 cents to $3.74 per pound in New York trade and three-month copper was up $176 per tonne to $8,296 per tonne in London while lead was up $20 to $2,275 per tonne and tin hit a new record high of $25,500 per tonne even though the metal was untraded at the close of trade in London and bids ended $100 higher at $25, 250 per tonne.

Nickel, on the other hand, dropped $195 to $26,305 per tonne in London.

Precious metals prices were mixed, with June gold up $13.30 to $879.80 per troy ounce by near the end of floor trade in New York while July silver gained 6 cents to $16.67 per troy ounce but July platinum dropped $14.10 to $2,025 per troy ounce.

Grains prices were also mixed as July corn on the Chicago Board of Trade added 2 cents to $5.99 per bushel and July wheat was up by 7 cents to $7.71 per bushel, but July soybeans fell 32 cents to $13.47 per bushel and July rice dropped $1.50 to $20.34 per bushel.

The decline for soybeans came on the possibility that a dispute between farmers and the government in Argentina over export taxes could end soon.

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