Crude oil prices were slightly higher on Tuesday on the heels of an announcement that Abu Dhabi National Oil Corporation will export 5 percent less oil next month. The cut is United Arab Emirates’ contribution to OPEC’s output cuts. However, some analysts are of the opinion that for the OPEC cuts to do any good, inventories have to decline or demand must increase, neither of which seems to be on the horizon. Inventories are significantly above last year’s levels in both the United States and Europe.
December contracts for Brent crude were 35 cents higher to $59.56 per barrel in London, while West Texas Intermediate crude for December delivery added 33 cents to $59.14 per barrel on the New York Mercantile Exchange.
In the metals markets, gold added 0.2 percent to $581.30 per troy ounce after having dropped to $573.85 per troy ounce earlier in the session. Base metals prices, however, were down on the session. Zinc dropped 0.4 percent to $3,905 per tonne even though London Metal Exchange inventories dropped another 2,525 tonnes to 117,375 tonnes. Nickel was 0.5 percent lower to $32,250 per tonne after hitting a new record Monday. Copper fell 0.8 percent to $7,485 per tonne.
