Crude oil prices up on Middle East events

Crude oil prices resumed their upward climb on Tuesday on concerns that the current conflict between Israel and Lebanon could widen to include other Middle Eastern nations, especially Iran.

Brent crude September contracts added 50 cents to $76.42 per barrel by late afternoon in London in trading on the International Petroleum Exchange. West Texas Intermediate crude for August delivery was 45 cents higher by early afternoon to $75.75 per barrel, still well below the record price of $78.40, set on Friday. With August contracts for WTI expiring at the end of the session on Thursday, attention is beginning to turn to September contracts, which added 55 cents to $77.46.

In addition, Nymex unleaded gasoline prices for August were up to $2.3460 per gallon, the highest they have reached since immediately after Hurricane Katrina, last August.

Precious metals prices dropped on Tuesday. Gold declined by $12 to $637.90/$638.60 per troy ounce, while silver dropped 28 cents to $10.74 per troy ounce. Base metals prices, however, were higher. Three-month copper was $45 dollar higher to $7,785 per tonne on the London Metal Exchange even though a strike of Mexican miners at the Cananea copper mine ended on Monday. The possibility of a new strike at the world’s largest copper mine has investors concerned.

Cocoa was down nearly 5 percent to £864 per tonne, following a 14 percent decline on Monday. It is expected by many that the price of cocoa will drop still further after reaching a three-year high last week on supply disruption concerns in Cote d’Ivoire that never materialized. Wheat prices were higher, meanwhile, as hot weather in Europe brought concerns that crops could be reduced. Wheat futures hit two-year highs in both England and France, at £81.50 per tonne and €125 per tonne respectively.

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