Crude oil, grains prices drop

Crude oil prices slipped Wednesday after early gains on an announcement from OPEC that it will cut production but will leave production quotas intact.

West Texas Intermediate crude for October delivery traded 36 cents lower to $102.90 per barrel around the close of trade on the New York Mercantile Exchange while Brent crude remained below $100 per barrel for a second session in a row.

Near the close of floor trade in New York, Nymex October gasoline was up 1 cent to $2.67 per gallon but October heating oil was 2 cents lower to $2.90 per gallon and October natural gas had dropped 14 cents to $7.40 per million British thermal units.

Prices were down even though US inventories were reported lower by the US Energy Information Administration, with crude stockpiles down 5.9 million barrels last week, gasoline inventories 6.5 million barrels lower, and distillates stockpiles down by 1.2 million barrels.

Most natural gas and oil production in the Gulf of Mexico remained closed as Hurricane Ike entered the Gulf of Mexico on its way to a likely landfall in Texas later in the week.

Base metals prices were mixed while precious metals prices fell on the session.

Three-month copper added $25 in London to $6,840 per tonne but after the news of a magnitude 5.8 earthquake in Chile, the metal rose to $6,962 per tonne in electronic trade, while December copper added 3 cents to $3.11 in New York.

In other base metals, aluminium added $23 to $2,626 per tonne, lead was up $29 to $1,799 per tonne, zinc was $32 higher to $1,750 per tonne, but nickel dropped $150 to $18,350 per tonne and tin also traded lower.

December gold was down $29.50 to $762.50 per troy ounce in New York while December silver dropped 78 cents to $10.94 per troy ounce while October platinum fell $70.10 to $1,192 per troy ounce.

Grains prices declined on the Chicago Board of Trade, with CBOT December wheat down 4 cents to $7.25 per bushel as December corn fell 7 cents to $5.36 per bushel and November soybeans dropped 23 cents to $11.78 per bushel.

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