Market Updates

Oil Rallies, Gold Dips

Ivaylo
14 Jun, 2007
New York City

    Oil and gasoline futures rallied Wednesday after the government announced that the gasoline stockpiles were well below average for this time of year. Precious metals prices sank as the dollar strengthened. Copper prices rebounded to finish nearly 2% higher on the London Metal Exchange. In the agriculture market, wheat and corn prices rose while soybean prices retreated.

[R]5:30AM Oil prices surge Wednesday on depletion of supplies, gold, silver sink.[/R]

Crude oil for July delivery surged 91 cents to close at $66.26 a barrel on the New York Mercantile Exchange. July gasoline rose 2.03 cents to finish at $2.1553 a gallon.The EIA posted a slight decrease in use of the refineries to 89.2 percent, down from 89.6 percent in the prior week and 91.1 percent three weeks ago.

Gold for August delivery settled lower, shedding 40 cents to $652.70 an ounce. The U.S. dollar gyrated in early trading, then later advanced against most major world currencies, including the euro and yen, which put pressure on gold. Silver for July slipped 3 cents to finish at $13.06 an ounce. Nymex copper prices rose 2.6 cents to end at $3.313 a pound.

July soybeans slipped as low as $8.15 a bushel then recovered somewhat to settle down a fraction of a penny at $8.256 on the Chicago Board of Trade. July corn rose jumped 11 cents to settle at $4.044 a bushel on forecasts for persistently dry weather in the eastern Corn Belt, which badly needs rain. Wheat, which is at the start of harvest season and has suffered rain damage, rallied 24.4 cents to end at $5.894 a bushel.

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