Crude prices jump on China stimulus

Crude oil prices were higher Monday after China announced that it will spend 4 trillion yuan ($568 billion) to stimulate its economy over the next two years as investors bet the Asian nation’s program to improve its infrastructure, build low-rent housing and develop rural areas would push oil demand higher.

December contracts for West Texas Intermediate crude added $1.36 to $62.40 per barrel at the close of floor trade on the New York Mercantile Exchange while Brent crude for December delivery gained $1.60 to $58.95 per barrel on the ICE Futures Europe exchange in London.

In afternoon trade Nymex December gasoline had added 2 cents to $1.37 per gallon, while December heating oil was up 6 cents to $2.04 per gallon.

Most metals prices also gained on the news from China.

Three-month copper added $120 to $3,875 per tonne in London and December copper jumped 6 cents to $1.75 per pound in New York on the theory that China’s plans will boost copper demand there.

Zinc was up by about $10 to trade in a range around $1,100/$1,105 per tonne on the session, while aluminium gained $30 to $1,990 per tonne after its inventories gained another 11,125 tonnes during the day, tin was $75 higher to $14,675 per tonne, and nickel gained $525 to $11,500 per tonne but lead fell $6 to $1,355 per tonne.

Meanwhile, among precious metals, December gold was up $12.30 to $746.50 per troy ounce in New York while December silver added 26 cents to $10.22 per troy ounce and January platinum gained $7.90 to $859.90 per troy ounce.

Grains prices were mixed on the Chicago Board of Trade as December corn added 8 cents to $3.83 per bushel and November soybeans gained 28 cents to $9.40 per bushel but December wheat dropped a cent to $5.20 per bushel.

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