Oil prices surge; metals, grains also climb

Crude oil prices surged Thursday as the US dollar weakened and on geopolitical concerns over Russia.

After the announcement that the United States and Poland have signed an agreement to locate parts of a missile defense shield in Polish territory brought a warning from a Russian general that putting the installations there could invite a nuclear attack by Russia, while in a separate development the North Atlantic Treaty Organization said that Russia has informed it that it will no longer cooperate militarily with the alliance.

Other worries included the ongoing conflict between Georgia and Russia, was well as concerns that OPEC could cut production quotas at its meeting next month and the possibility that Tropical Storm Fay could return to the Gulf of Mexico.

October contracts for West Texas Intermediate crude added $5.67 to $121.23 per barrel on the New York Mercantile Exchange while Brent Crude for October delivery gained $5.97 to $120.33 per barrel on the ICE Futures Europe exchange in London.

Nymex September gasoline futures added 13 cents to $3.039 per gallon.

Metals prices were up on the gains oil prices and on a weaker US dollar.

December gold added $20.40 just before the close of floor trade in New York to trade at $836.70 per troy ounce, while December silver was 67 cents higher to $13.83 per troy ounce and October platinum gained $89.90 to $1,485.80 per troy ounce.

Copper prices were up 14 cents to $3.54 per pound in New York while three-month copper added $355 to $7,865 per tonne on the London Metal Exchange even though LME stockpiles added 400 tonnes on the session and worries persist about slow demand in China.

Aluminium added $86 to $2,848 per tonne while zinc was up $130 to $1,880, lead was $165 higher to $1,905 per tonne, tin jumped $1,315 to trade in a range around $21,790/$21,810 per tonne at the close of trade in London, while nickel gained $1,595 to $21,495 per tonne.

Wheat prices were up on the Chicago Board of Trade, with September contracts up 22 cents to $8.97 per bushel on overseas demand.

CBOT December corn was 22 cents higher to $6.17 per bushel and November soybeans gained 48 cents to $13.48 on the risk that late planting due to floods could leave crops susceptible to frost damage before next month’s harvest.

Story link: Oil prices surge; metals, grains also climb