Crude oil prices drop on demand decline

Crude oil prices were lower Tuesday on a stronger US dollar more signs of declines in demand that have raised expectations that gasoline inventories will be up when the US Energy Information Administration issues its weekly stockpiles report tomorrow.

September contracts for West Texas Intermediate crude was down $2.57 to $122.16 per barrel on the New York Mercantile Exchange after going as low as $120.42 per barrel earlier in the session, while Brent crude dropped $3.18 to $122.66 per barrel on the ICE Futures Europe exchange in London.

Prices for WTI are down more than $25 from their record high, set on 11 July.

Nymex August gasoline dropped 6 cents to $3.00 per gallon.

Most metals prices fell Tuesday as the US dollar strengthened, oil prices declined, and there were worries about slow demand for some metals.

September copper was down 2 cents to $3.59 per pound in New York while three-month copper in London dropped $50 to $7,945 per tonne and even though London Metal Exchange stockpiles remain at historically low levels, recent gains have stimulated concerns about lagging demand.

Higher aluminium inventories in London sent prices down $57 to $2,960 per tonne, while declines in lead stockpiles produced a gain of $40 on the session to $2,270 per tonne although prices went as high as $2,293.75 per tonne earlier.

Zinc was down $55 to $1,870 per tonne while nickel dropped $700 to $18,050 per tonne on slow demand and tin traded at around $22,360/$22.380 per tonne at the close, down nearly $200 from Monday’s prices.

Among precious metals, December gold was down $11.20 to $926.60 per troy ounce while September silver fell 9 cents to $17.38 per troy ounce and October platinum dropped $31.30 to $1,745.40 per troy ounce.

Grains prices were mixed with December corn on the Chicago Board of Trade adding 11 cents to $6.12 per bushel while September wheat dropped 5 cents to $7.92 per bushel and November soybeans were down 6 cents to $13.90 per bushel.

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