US retail sales data hurts oil, most metals prices

June contracts for West Texas Intermediate crude were down 83 cents to $58.02 per barrel Wednesday after the US Energy Information Administration said that crude oil stockpiles in the US fell unexpectedly last week.

US crude oil inventories dropped by 4.7 million barrels in the week ending 8 May against expectations that they would add over a million barrels, while US gasoline inventories were also down, by 4.1 million barrels to 208.3 million barrels, and distillates in storage added 1 million barrels.

Still, at 370.6 million barrels in storage, crude oil inventories are still 44.8 million barrels over last year at the same time and stockpiles remain at their highest level since 1990.

Nymex June gasoline futures added 2 cents to $1.69 per gallon on the session while June heating oil closed even at $1.50 per gallon.

June gold added $2 to $925.90 per troy ounce in New York trade, but other precious metals were lower on the session as July silver dropped 20 cents to $14.02 per troy ounce and July platinum was $8.90 lower in New York traded.

Gold benefited from its reputation as a safe place to put money after the Commerce Department said that retail sales were down by 0.4 percent in the United States in April, news which sent equities markets lower.

Copper prices, on the other hand, declined on the US retail sales report as well as on new data showing that industrial production was down in China in April and in Europe in March, contributing to concerns that demand for the metal used in manufacturing and construction will remain weak.

July copper fell 6 cents to $2.03 per pound in New York trade while three-month copper was down $137 to $4,458 per tonne, or $2.02 per pound, on the London Metal Exchange.

Grains prices were mixed on the Chicago Board of Trade as May soybeans added 12 cents to $11.50 per bushel but May corn traded unchanged at $4.19 per bushel and May wheat dropped 3 cents to $5.78 per bushel.

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