Crude oil down despite lower inventories

Crude oil prices fell again on Wednesday despite new data showing that inventories of both crude oil and gasoline fell in the United States last week. Crude oil stockpiles were down by 1.8 million barrels, about the amount analysts had expected, while gasoline inventories were 2.3 million barrels lower. The decline in gasoline stockpiles was more than had been forecast. In addition, demand for gasoline was up 1.7 percent compared to last year at the same time, to 9.61 million barrels per day, only slightly lower than last weeks record demand of 9.7 million barrels per day.

Brent crude for September delivery was 61 cents lower to $73.19 per barrel in London, while West Texas Intermediate September contracts on the New York Mercantile Exchange fell by 55 cents to $72.50 per barrel. Nymex September unleaded gasoline was up 0.5 cents to $1.9950 per gallon.

In the metal markets on Wednesday, nickel was again in focus as the cash price hit $35,000 per tonne and three-month prices were up 6.4 percent to $29,200 per tonne, a new record. While inventories in London Metal Exchange warehouses grew by 354 tonnes, the amount in storage but already marked for delivery rose to 77.7 percent of LME inventories. Global stockpiles have shrunk to less than one day’s consumption. In other base metals, copper was at $7,700 per tonne as the strike in Chile continued. Management is currently considering a proposal from the union that cuts its demand for a pay raise from 13 percent to 10 percent.

Precious metals prices were up, with gold adding 0.6 percent to $628.40 per troy ounce and silver jumping 2.5 percent to $12.31 per troy ounce. Platinum and palladium prices were also higher, to $1,228 per troy ounce and $333 per troy ounce respectively.

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