Oil, most metals higher

Crude oil prices turned higher Thursday, mostly due to heightened worries about geopolitical issues in Africa and the Middle East.

The main militant group in Nigeria cancelled its ceasefire against oil installations there after Britain said it will support Nigeria’s government in the fight against the militants, while Iran test-fired more long-range missiles in the Persian Gulf.

Also, the Secretary General of the Organization of Petroleum Exporting Countries said that the cartel will not be able to supply substitute oil if Iran cuts off its supply in response to an attack.

West Texas Intermediate crude oil for August delivery added $5.60 to $141.65 per barrel on the New York Mercantile Exchange after going as high as $142.04 per barrel earlier in the session, while August contracts for Brent crude was up $4.79 to $141.37 per barrel on the ICE Futures Europe exchange in London.

Nymex August gasoline added 13 cents to $3.51 per gallon while August heating oil jumped 18 cents to $4.03 per gallon and August natural gas gained 29 cents to $12.30 per million British thermal units.

Precious metals prices were up as well, also in response to the missile tests by Iran.

August gold was up $13.40 to $942 per troy ounce in New York while September silver added 14 cents to $18.31 per troy ounce and October platinum gained $26.40 to $1,998.40 per troy ounce.

Most base metals were also higher on the session, although tin dropped $100 to $22,800 per tonne in London and at last report September copper was down 2 cents to $3.72 per pound at last report in New York.

Earlier in London, however, three-month copper added $30 to $8,230 per tonne on the London Metal Exchange but gains were limited by new data showing demand from China down in June.

Aluminium added $100 to close at $3,290 per tonne while zinc added $125 to $1,990 per tonne, lead was $194 higher to $1,984 per tonne, and nickel gained $450 to $21,900 per tonne.

Grains prices were mixed. September wheat on the Chicago Board of Trade fell 7 cents to $8.18 per bushel on the possibility that the United States Department of Agriculture will say the winter crop, just over half of which has been harvested, is bigger than earlier estimates, while CBOT December corn dropped 8 cents to $7.04 per bushel.

On the other hand, CBOT November soybeans added 30 cents to $15.87 per bushel on expectations that the USDA will say US inventories are down due to flooding in growing regions last month.

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