Factory data sends crude oil lower

Crude oil prices dropped Monday on new data showing that manufacturing activity was down in the US in October, raising more fears that demand will decline further.

December contracts for West Texas Intermediate crude dropped $3.90 to $63.91 per barrel at the close of floor trade on the New York Mercantile Exchange while Brent crude for December delivery was down $4.79 to $60.53 per barrel on the ICE Futures Europe exchange in London.

December gasoline futures on Nymex were down 13 cents to $1.37 per gallon while December heating oil dropped 10 cents to $1.99 per gallon but January natural gas added 3 cents to $7.08 per million British thermal units.

Metals prices were mixed.

While December copper added a cent to $1.84 per pound in New York, three-month copper in London was down $9 to $4,090 per tonne as investors worried about demand, especially in China after manufacturing activity declined in that Asian nation in October.

Lead dropped $5 to $1,500 per tonne, aluminium also dropped $5, to $2,050 per tonne, and nickel was $105 lower to $11,995 per tonne while zinc added $45 to $1,170 per tonne and tin gained $1,100 to $14,500 per tonne.

Among precious metals, gold added $8.80 to $727 per troy ounce in New York while December silver added 2 cents to $9.75 per troy ounce.

Grains prices were higher on the Chicago Board of Trade as December corn added a cent to $4.03 per bushel, January soybeans were up 4 cents to $9.37 per bushel and December wheat gained 25 cents to $5.62 per bushel.

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