Oil, precious metals prices climb

Oil prices saw gains Tuesday on speculation that Hurricane Gustav might enter the Gulf of Mexico, endangering oil facilities in the region, with some estimates that it could turn into a Category 4 or Category 5 storm if it does, indeed, enter the Gulf.

October contracts for West Texas Intermediate crude were up $1.17 to $116.28 per barrel on the New York Mercantile Exchange while Brent crude for October delivery gained 43 cents to $114.46 per barrel.

Nymex September gasoline futures were 9 cents higher to $2.972 per gallon while natural gas futures added 49 cents to $8.43 per million British thermal units in afternoon trade.

Base metals prices fell, with copper down 5 cents to $3.42 per pound in New York, while three-month copper dropped $80 to $7,580 per tonne in London as inventories grew in London and were rumored to be growing in Shanghai as well.

Aluminium prices fell by $12 to $2,768 per tonne while lead was down $30 to $1,855 per tonne, zinc fell $40 to $1,790 per tonne, tin was around $200 lower to $20,700 and nickel dropped $770 to $20,030.

Among precious metals, however, December gold added $1.80 to $827.50 per troy ounce while December silver jumped 19 cents to $13.67 per troy ounce.

Grains prices fell on the session as the dollar strengthened, raising the possibility that overseas buyers will be less inclined to purchase US crops.

November soybeans on the Chicago Board of Trade were down 2 cents to $13.44 per bushel while CBOT December corn fell 6 cents to $5.94 per bushel and September wheat dropped 9 cents to $8.30 per bushel.

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