Crude up as gold hits new record high price

Crude oil prices were up Tuesday after falling in early trade on indications from the UK banking sector that the recession might still have a way to go before it ends.

December contracts for West Texas Intermediate crude were up $1.35 to $79.48 per barrel on the New York Mercantile Exchange after going as low as $76.55 in early trade, while at last report Brent crude for December delivery had added $1.57 to $78.12 per barrel.

Nymex December gasoline futures were down 3 cents to $1.96 per gallon while December heating oil added 2 cents to $2.07 per gallon and December natural gas traded even at $4.82 per million British thermal units.

Tomorrow’s new US inventories data from the Energy Information Administration is expected to show that stockpiles of crude oil, gasoline and distillates were all higher last week as demand for gasoline weakened slightly.

The price of gold reached a new record in New York after the International Monetary Fund sold 200 tonnes of gold to India’s central bank amid speculation that India could buy even more of the precious metal.

December gold was up $30.90 to $1,084.90 per troy ounce in New York trade, while December silver added 75 cents to $17.19 per troy ounce and January platinum gained $18.10 to $1,356.20 per troy ounce, but by late morning in New York palladium had dropped $4.85 to $321.50 per troy ounce as investors took profits.

Among base metals, December copper was up a cent to $2.96 per pound in New York but three-month copper fell $65 to $6,490 per tonne, or $2.94 per pound, in late afternoon trade on the London Metal Exchange after inventories in LME-monitored warehouses continued to climb, extending concerns over demand strength.

Most other base metals were also lower on the session in London.

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