WTI sets new record, ends up $5

Crude oil prices jumped to a new high for a front-month contract at $140.39 per barrel Thursday after Libya said that it might cut oil production, citing sufficient supplies, although there was no indication of how much the cut might be or when the decision might be made and after the president of OPEC said that oil prices could go as high as $170 per barrel this summer.

West Texas Intermediate crude for August delivery closed up $5.09 to $139.64 per barrel after rising as high as $140.39 per barrel, the highest price ever for a front-month contract, on the New York Mercantile Exchange, while August contracts for Brent crude were last reported up $5.74 to $140.05 per barrel on the ICE Futures Europe exchange in London.

Nymex August natural gas futures were up 38 cents to $13.26 per million British thermal units despite a gain in US inventories, while Nymex July gasoline futures were up 12 cents to $3.51 per gallon.

Metals prices rose Thursday as the dollar weakened after Wednesday’s decision by the US Federal Reserve to hold interest rates at 2 percent and on sentiment that the Fed might not be eager to raise rates soon, giving gold its biggest one-day percentage gain in 16 months.

August gold added $33.20, or around 3.5 percent, to $915.50 per troy ounce in New York, while September silver was up 61 cents to $17.22 per troy ounce, while October platinum gained $51.70 to $2,071 per troy ounce.

Among base metals, September copper was up 5 cents to $3.83 per pound in New York, while three-month copper was $128 higher to $8,443 per tonne, or $3.83 per pound, on the London Metal Exchange.

Grains prices were up on inflation worries, with corn and soybeans also higher on worries that more rainfall will hurt crops.

July corn on the Chicago Board of Trade jumped 23 cents to $7.53 per bushel, while December contracts hit a record $7.95 per bushel in early trade.

CBOT July soybeans were up 36 cents to $15.74 per bushel while July wheat jumped 22 cents to $9.24 per bushel.

Story link: WTI sets new record, ends up $5