IEA demand outlook sends WTI lower

The price of crude oil in New York was lower in early afternoon trade Thursday on a new demand estimate from the International Energy Agency, which said it expects demand to decline to 84.7 million barrels per day in 2009, more than half a million barrels lower than the estimate it issued in January.

March contracts for West Texas Intermediate crude had dropped $1.11 to $34.85 per barrel by 1:17 p.m. on the New York Mercantile Exchange, but Brent crude for March delivery was up 77 cents at last report to $45.05 per barrel on the ICE Futures Europe exchange in London.

In morning trade, Nymex March gasoline futures were up 2 cents to $1.29 per gallon while March heating oil had added a cent to $1.33 per gallon.

Most base metals prices fell during the session as London inventories for several metals saw gains.

March copper was down less than a cent to $1.54 per pound at noon in New York, while three-month copper dropped $39 to $3,420 per tonne on the London Metal Exchange as inventories in LME warehouses added 225 tonnes during the session to 516,675 tonnes.

In afternoon trade in London, three-month nickel had dropped $198 to $10,207 per tonne as LME inventories were up 576 tonnes to 88,728 tonnes, while aluminium was $21 lower to $1,380 per tonne as inventories were at a record high of 2.9 million tonnes.

Among other base metals, lead was $27 lower to $1,143 per tonne and zinc was down $28.75 to $1,143.25 per tonne, but tin added $295 to $11,195 per tonne on gains in inventories.

Precious metals prices were mixed in New York in early afternoon trade as April gold added $4 to $948.50 per troy ounce and April platinum had gained $2.30 to $1,083 per troy ounce but March silver was 4.5 cents lower to $13.47 per troy ounce.

Gold reached $952 per troy ounce earlier in the session.

In early afternoon trade on the Chicago Board of Trade, March wheat added 1 cent to $5.44 per bushel and March corn was up 5 cents to $3.74 per bushel but March soybeans dropped 4 cents to $9.74 per bushel.

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