Crude prices fall after early gains

Crude oil prices went as high as $139.89, a gain of more than $5 over Friday’s close in early trade on Monday before ending lower on the session.

By the close of floor trade on the New York Mercantile Exchange July contracts for West Texas Intermediate crude had dropped $1.17 from Friday’s close to $133.69 per barrel, while at last report Brent crude had dropped 93 cents to $134.11 per barrel on the ICE Futures Europe exchange in London.

Nymex July gasoline futures were down 3 cents to $3.43 per gallon while July heating oil added 7 cents to $3.91 per gallon and July natural gas was up 29 cents to $12.91 per million British thermal units.

The gains came on a fire that was reported overnight on a North Sea drilling rig and on the falling dollar, which encouraged buying.

Saudi Arabia said they will increase production by 200,000 barrels per day in July after a 300,000 barrel per day increase in May seemed not to have much effect early, but helped declines later in the session.

Precious metals prices saw gains but base metals prices were mixed as the dollar declined on bad news from the manufacturing sector in the New York region.

August gold added $13.20 around the close of floor trade in New York to $886.30 per troy ounce, while July silver was up 67 cents to $17.23 per troy ounce and July platinum gained 13.70 to $2,050.70 per troy ounce.

Among base metals, September copper added 7 cents to $3.66 per pound in New York while three-month copper in London added $130 in afternoon trade there to $8,110 per tonne even though London Metal Exchange stockpiles saw gains on the session.

Other base metals prices were mixed in late-day trade in London, with aluminium adding $22 to $2,967 per tonne and tin up $750 to $21,750 per tonne, but zinc fell $30 to $1,870 per tone and nickel dropped $150 to $23,850 per tonne.

Lead traded even at $1,775 per tonne after declines early on expanded stockpiles in London.

A variety of other commodities saw gains associated with the weaker dollar.

September coffee futures were up 3.9 cents to $1.407 per pound in morning trade on the ICE Futures US exchange in New York after going as high as $1.42 per pound earlier, while December cotton added 3 cents to 82.45 cents per pound in mid-morning trade, also on the ICE Futures US exchange.

Grains prices, however, were lower after some early gains, with July corn down 2 cents to $7.29 per bushel in afternoon trade on the Chicago Board of Trade while CBOT July wheat fell 5 cents to $8.76 per bushel and July soybeans dropped 26 cents to $15.34 per bushel.

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