Crude oil, metals prices in more substantial declines

Crude oil prices took another big drop Thursday as the US dollar strengthened and after the National Association of Realtors said that US existing home sales dropped by 2.7 percent in August, casting doubt on just how fast and how far the economy has recovered and will continue to recover.

November contracts for West Texas Intermediate crude was down $3.22 to $65.75 per barrel just a few minutes before the close of floor trade on the New York Mercantile Exchange, while Brent crude for November delivery dropped $3.36 to $64.63 per barrel on the ICE Futures Europe exchange in London.

Nymex October gasoline futures were down 7 cents to $1.63 per gallon in afternoon trade, while Novembe heating oil was 8 cents lower to $1.71 per gallon.

Also hurting prices was yesterday’s inventories report from the Energy Information Administration showing that US inventories of crude oil, gasoline and distillates expanded last week while demand for oil was said to be down by 3 percent.

December copper fell 10 cents to $2.71 per pound in New York trade, hurt by the news on US home sales, while London prices ended down $176 to $5,950 per tonne after London Metal Exchange inventories added 8,925 tonnes during the session.

Copper prices were also hurt by the news that workers could vote soon to strike against a mine in chile and by generally less optimistic sentiment after announcements from the US Federal Reserve and the European Central Bank that they will reduce their programs for emergency lending to banks.

Other base metals prices were also lower as aluminium fell $33 to $1,840 per tonne, zinc was down $39 to $1,864 per tonne, lead was $69 lower to $2,171 per tonne, tin fell $300 to $14,350 per tonne and nickel dropped $775 to $17,100 per tonne.

Gold was lower on a dollar that strengthened after the news on existing home sales and after equities markets declined and oil prices fell as investors looked for safe places to put their money.

December gold was down $15.60 to $998.80 per troy ounce while December silver fell 61 cents to $16.30 per troy ounce and October platinum was $19.30 lower to $1,307 per troy ounce.

Earlier, in midmorning trade, December palladium had dropped $2.30 to $295.35 per troy ounce.

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