Gustav threat sends oil prices higher

The price of crude oil was higher Wednesday on continuing fears that Tropical Storm Gustav will regain strength, enter the Gulf of Mexico, and hit oil facilities in the Gulf and on the Gulf Coast.

October contracts for West Texas Intermediate crude added $1.88 to $118.15 per barrel on the New York Mercantile Exchange while Brent crude for October delivery gained $1.58 to $116.12 per barrel on the ICE Futures Europe exchange in London.

In afternoon trade, Nymex September gasoline futures added 11 cents to $3.08 per gallon while October heating oil was up 5 cents to $3.29 per gallon and October natural gas gained 13 cents to $8.52 per million British thermal units.

Prices were also affected by US Energy Information Administration weekly inventories data, which showed that crude oil stockpiles were down by 100,000 barrels in the week ending 22 August while gasoline inventories dropped by 1.2 million barrels and distillates stockpiles remained steady.

Most metals prices were higher on a weaker dollar and the higher price of crude oil.

Among precious metals, December gold was up $5.90 to $834 per troy ounce while October platinum gained $19.60 to $1,440.70 per troy ounce.

Zinc added $59 to $1,849 per tonne, while three-month copper was up about $75 to trade in a range around $7,650/$7,655 per tonne in London and Decmeber copper added 3 cents to $3.45 per pound in New York trade/

Lead was $195 higher to $2,050 per tonne on more imports by China and as LME inventories dropped by 3,050 tonnes while nickel gained $970 to $21,000 per tonne.

A few metals prices were lower, including Decmeber silver, which dropped 11 cents to $13.57 per troy ounce in New York trade, while in London three-month aluminium was down $3 to $2,765 per tonne even though inventories were down by 2,200 tonnes on the session and tin fell $150 to $20,550 per tonne.

Grains prices were mixed on the Chicago Board of Trade as December corn added 2 cents to $5.96 per bushel and November soybeans gained 3 cents to $13.48 per bushel but September wheat dropped 27 cents to $8.02 per bushel.

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