WTI, Brent gain as US inventories drop

Crude oil prices jumped Wednesday after the US Energy Information Administration reported that crude oil inventories in the United States fell unexpectedly as imports were down to their lowest level in nearly a year.

The EIA said that crude oil stockpiles dropped by 8.4 million barrels to 343.6 million barrels in the week ending 14 August, while gasoline stockpiles fell by 2.1 million barrels to 209.8 million barrels and distillates in storage were down by 700,000 barrels to 161.6 million barrels.

September contracts for West Texas Intermediate crude was up $3.23 to $72.42 per barrel on the New York Mercantile Exchange, but with those contracts due to expire tomorrow, October contracts saw more action and were up $2.47 to $73.83 per barrel.

Brent crude gained $1.86 to $74.23 per barrel on the ICE Futures Europe exchange in London.

Nymex September gasoline futures were up 3 cents to $2.03 per gallon while September heating oil added 5 cents to $1.92 per gallon and September natural gas gained 2 cents to $3.12 per million British thermal units.

Three-month copper fell $155 to $5,925 per tonne on the London Metal Exchange, while September copper traded even at $2.76 per pound in New York after steep declines in Chinese equities markets added to demand concerns raised by yesterday’s US Commerce Department report on housing starts.

Other base metals prices were mixed as nickel was down $50 to $18,800 per tonne, aluminium fell $55 to $1,950 per tonne and tin dropped $250 to $13,550 per tonne, but lead added $5 to $1,815 per tonne and zinc gained $10 to $1,805 per tonne.

Among precious metals, December gold was $5.60 higher to $944.80 per troy ounce as the US dollar declined while October platinum was up $9.30 to $1,241.40 per troy ounce and, in late morning trade in New York, palladium gained $2.05 to $274.40 per troy ounce

September silver was 9 cents lower to $13.88 per troy ounce.

Grains prices were also mixed in afternoon trade in Chicago.

September wheat was less than a cent higher to $4.66 per bushel and September soybeans added a cent to $9.98 per bushel, but September corn dropped 3 cents to $3.19 per bushel.

Story link: WTI, Brent gain as US inventories drop