Crude prices lower again on demand predictions

Crude oil prices were lower Friday, at the end of a week that saw the US Energy Information Administration, the International Energy Agency and the Organization of Petroleum Exporting Countries all cut their forecasts for oil demand for the year.

West Texas Intermediate crude for June delivery was $1.94 to $56.68 per barrel about half an hour before the close of floor trade on the New York Mercantile Exchange, while Brent crude was down 69 cents to $56 per barrel on the ICE Futures Europe exchange in London.

Nymex June gasoline futures were down 5 cents to $1.68 per gallon, while June heating oil fell 8 cents to $1.41 per gallon.

On the other hand, the retail price of a gallon of gasoline in the United States added a cent overnight to $2.29 per gallon on average a week ahead of the Memorial Day holiday weekend, which is the traditional kick-off of the summer driving season in the US.

Three-month copper prices added $5 to $4,450 per tonne in London but July contracts for copper in New York dropped 2 cents in midday trade to $2.01 per pound as concerns about recovery from the recession and demand in China continued to worry analysts and investors.

Expectations that demand will recover were also put into question by new data showing that Germany’s gross domestic product was down 3.8 percent in the first quarter.

Other base metals prices were mixed as aluminium was $9 lower to $1,522 per tonne on another significant gain in LME inventories and nickel was down $125 to $12,425 per tonne, but lead added $52 to $1,482 per tonne and tin traded higher in a range around $13,650 to $13,700 per tonne while zinc traded in a range around $1,495 to $1,500 per tonne, nearly the same as it’s close Thursday.

Among precious metals at midday in New York, June gold had added $4 to $932.40 per troy ounce but July silver had dropped 2 cents to $14.02 per troy ounce.

Grains prices were lower on the Chicago Board of Trade as July contracts took over as the front-month contract.

CBOT July corn was down 10 cents to $4.17 per bushel while July wheat fell 13 cents to $5.79 per bushel and July soybeans dropped 19 cents to $11.28 per bushel.

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