Oil prices drop again

Crude oil prices fell for a second day in a row Wednesday after the US Energy Information Administration reported that inventories were up more than expected last week.

August contracts for West Texas Intermediate crude were down $4.16 to $134.58 per barrel just before the close of floor trade on the New York Mercantile Exchange while at last report Brent crude had dropped $2.58 to $136.17 per barrel.

Crude oil stockpiles added 3 million barrels against an expected decline of 3 million barrels while gasoline inventories added 2.4 million barrels and distillates were up by 3.2 million barrels.

At the same time, oil products demand dropped 2 percent from last year during the same period.

Nymex August gasoline futures were down 11 cents to $3.27 per gallon and September heating oil fell 8 cents to $3.87 per gallon, while September natural gas dropped 8 cents to $11.49 per million British thermal units.

Metals prices also declined, following oil lower.

Aluminium was $90 lower to $3,125 per tonne and went as low as $3,083 per tonne while September copper dropped 5 cents to $3.65 per pound in New York and three-month copper on the LME was down $35 to $8,080 per tonne, lead was down $25 to $1,965 per tonne and nickel dropped $450 to $20,400 per tonne.

Precious metals were also lower as August gold was $16 lower to $962.70 per troy ounce in New York, while September silver fell 21 cents to $18.18 per troy ounce and October platinum dropped $43.50 to $1,938.40 per troy ounce.

In contrast to oil and metals, grains prices saw gains on the session.

November soybeans on the Chicago Board of Trade added 32 cents to $15.48 per bushel on estimates from the US Department of Agriculture that inventories will decline, while December corn was 10 cents higher to $6.77 per bushel on the possibility that the dollar will decline, raising demand for US crops.

CBOT September wheat was also higher, adding 23 cents to $8.34 per bushel.

Story link: Oil prices drop again