Crude oil, grains, most metals see price declines

Crude oil prices were lower Monday after supply worries generated by fears of an attack on Iran declined on news that a EU negotiator has had communications with Iran that he said were “constructive” and on forecasts that Hurricane Bertha will likely stay out of the Gulf of Mexico and away from oil facilities there.

August contracts for West Texas Intermediate crude oil dropped $3.92 to close at $141.37 per barrel on the New York Mercantile Exchange while Brent crude was down $2.55 to $141.87 per barrel on the ICE Futures Europe exchange in London.

Nymex August gasoline futures were down 9 cents to $3.48 per gallon while August heating oil was down 14 cents to $3.97 per gallon and August natural gas dropped 58 cents to $13 per million British thermal units.

Aluminium prices gained in London on Monday on reports of government-mandated power shortages at smelters in northern China which cut output.

In late afternoon trade in London, aluminium was trading at $3,300 per tonne.

New York copper prices, meanwhile, were lower in New York, falling 10 cents to $3.85 per pound on a stronger dollar and on the news that a week-old miners’ strike in Peru has ended even as three-month copper added $7.50 to $8,480 per tonne in London.

Precious metals prices were also pushed lower by early gains in the dollar, with August gold down $4.80 to $928.80 per troy ounce in New York while at the same time September silver fell 45 cents to $17.92 per troy ounce and October platinum dropped $46.60 to $1,983.80 per troy ounce.

Grains prices were lower on the Chicago Board of Trade, with corn and soybeans seeing declines on hopes that better weather in the US Midwest will help yields, while wheat prices fell on the possibility that lower corn prices will cut demand for wheat as an alternative livestock feed.

CBOT July corn was down 29 cents to $7.16 per bushel while July wheat dropped almost 51 cents to $8.22 per bushel and July soybeans fell 69 cents to $15.89 per bushel.

Story link: Crude oil, grains, most metals see price declines