Demand concerns hurt oil, metals prices

More worries about demand, spurred by new data showing that growth in imports into China slowed in October and by doubts about the stimulus package recently announced by China which is meant to grow its economy, sent crude oil prices lower Tuesday.

December contracts for West Texas Intermediate crude had dropped $3.33 to $59.07 per barrel by 12:50 p.m. on the New York Mercantile Exchange, while Brent crude for December delivery was down $3.49 to $55.59 per barrel on the ICE Futures Europe exchange in London.

Nymex December gasoline was down 6 cents to $1.30 per gallon in the most recent report, while December heating oil had fallen 8 cents to $1.93 per gallon and January natural gas had dropped 47 cents to $6.95 per million British thermal units.

Precious metals prices were lower in midday trade in New York, also on demand concerns, with platinum and palladium both lower after carmaker General Motors (NYSE: GM) was perceived by some to be close to collapse, sending its shares to their lowest level since 1942.

Both metals are used in the manufacture of motor vehicle pollution control devices.

January platinum was down $35.10 to $824.80 per troy ounce at last report and December palladium had dropped $2.50 to $219.50 per troy ounce while December gold was down $15.90 to $730.60 per troy ounce while silver fell 50 cents to $9.72 per troy ounce.

Meanwhile, among base metals, copper prices were down on slowing exports from China and as home sales fell again in the UK.

One of the most common uses for copper is in home construction.

December copper was down 9 cents to $1.67 per pound in New York trade, while three-month copper dropped $245 to $3,630 per tonne, a decline of 6.3 percent, on the London Metal Exchange.

At early afternoon in Chicago, meanwhile, grains prices were lower on the Chicago Board of Trade.

CBOT December wheat was 4 cents lower to $5.15 per bushel while December corn fell 13 cents to $3.70 per bushel and November soybeans dropped 41 cents to $8.99 per bushel.

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