WTI gains $6 on session

Crude oil prices were up sharply Wednesday as it joined other commodities in gains on uncertainty about credit market turmoil and how it will affect the larger economy and after the US Energy Information Administration reported that stockpiles of crude oil, gasoline and distillates all declined last week.

October contracts for West Texas Intermediate crude added $6 to $97.15 per barrel after two days of steep declines, while Brent crude was up $5.19 to $94.41 per barrel following 14 consecutive sessions of downward movement.

According to the EIA, US crude oil inventories were down by 6.3 million barrels in the week ending 12 September, almost double the decline that had been anticipated, while gasoline stockpiles fell 3.3 million barrels and distillates in storage dropped 900,000 barrels.

December copper was down 5 cents to $3.04 per pound in New York while three-month copper dropped $110 to $6,760 per tonne on the London Metal Exchange after the US Commerce Department issued new data showing that housing starts in the US were down 6.2 percent in August.

On the other hand, gold jumped $70 to $850.50 per troy ounce in New York for its biggest dollar increase in history, as demand grew on investors’ search for a safe place to put money as they worried that the credit crisis will continue to cause trouble in the financial sector.

Silver had its biggest one-day gain since 1995, adding $1.16 to $11.68 per troy ounce while October platinum gained $17.80 to $1,086.30 per troy ounce.

Grains prices were higher on the Chicago Board of Trade as November soybeans were up 15 cents to $11.39 per bushel, December corn added 21 cents to $5.54 per bushel and December wheat gained 35 cents to $7.25 per bushel.

Story link: WTI gains $6 on session