Oil prices gain as most metals retreat

Crude oil prices were up on Monday on disappointment that Saudi Arabia did not pledge to hike production by more than it did as it promised that it would hike output by 200,000 barrels per day next month and continued to blame high prices not on low supplies but on speculators and the weak dollar.

August contracts for West Texas Intermediate crude added $1.38 to $136.74 per barrel on the New York Mercantile Exchange while Brent crude was up 69 cents to $135.55 per barrel on the ICE Futures Europe exchange in London.

Nymex July gasoline was up around a cent and a half to $3.4551 per gallon while July heating oil gained more than 2 cents to $3.7975 per gallon.

Worries about Nigerian production also helped prices higher, even though a major militant group there declared a ceasefire over the weekend on fears that the Saudi production increase will not cover interruptions in Nigerian supplies, especially if the promised ceasefire does not materialize or breaks down.

Gains were limited, however, as the dollar strengthened in relation to the euro during the session.

Most metals prices were lower on Monday as the US dollar strengthened.

September copper was 2 cents lower to $3.81 per pound in New York while three-month copper was down $35 to $8,400 per tonne in London despite rising to as much as $8,490 earlier in the day, while aluminium jumped to its highest price since mid-March at $3,169 per tonne before closing $7 lower at $3,143 per tonne.

Among other base metals, lead was $15 lower to $1,865 per tonne while zinc fell $19 to $1,926 per tonne and nickel dropped $550 to $21,850 per tonne, but tin added $600 to $23,300 per tonne on the session after London Metal Exchange inventories declined.

Most precious metals prices also lower, with August gold down $16.70 to $887 per troy ounce in New York while July silver dropped 62 cents to $16.78 per troy ounce and July platinum traded even at $2,039.20 per troy ounce.

Grains prices were mixed as July wheat on the Chicago Board of Trade dropped less than a cent to $8.66 per bushel and CBOT July soybeans were down 17 cents to $15.15 per bushel but July corn was up 3 cents in afternoon trade to $7.24 per bushel.

Story link: Oil prices gain as most metals retreat