Crude prices drop slightly on higher inventories

Crude oil prices were nearly flat in New York after dropping by more than $2 after the US Energy Information Administration released its weekly inventories data

The report was delayed a day due to the Martin Luther King, Jr Day holiday on Monday.

The EIA reported during the day that US crude oil inventories added 6.1 million barrels in the week ending 16 January, bringing crude in storage to 332.7 million barrels, while gasoline stockpiles were up by 6.5 million barrels in the week to 220 million barrels.

At the 2:30 p.m. close of floor trade on the New York Mercantile Exchange, March contracts for West Texas Intermediate crude was down just 10 cents to $43.45 per barrel, while at last report Brent crude for March delivery had dropped $1.44 to $43.58 per barrel on the ICE Futures Europe exchange in London.

In afternoon trade Nymex February gasoline futures dropped 11 cents to $1.07 per gallon while March heating oil was down 7 cents to $1.31 per gallon and March natural gas fell 10 cents to $4.65 per million British thermal units.

February gold added $8.70 to $858.80 per troy ounce in New York as European and US equities markets saw declines, while March silver was up 4 cents to $11.37 per troy ounce, April platinum was $7.30 higher to $934.90 per troy ounce and March palladium gained 40 cents to $184.80 per troy ounce.

Among base metals, meanwhile, March copper was down 4 cents to $1.40 per pound in New York after separate reports from the US Commerce and Labor departments which showed home construction down in the US in December and that jobless claims were up again last week.

Grains prices dropped on the Chicago Board of Trade, where March corn was down 2 cents to $3.87 per bushel, March wheat fell 5 cents to $5.66 per bushel and march soybeans dropped 8 cents to $10.12 per bushel.

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