Brent oil price hovers at $75 mark as gold, commodities rise

17 August 2010 17 August 2010

BonTrade

Brent oil prices are hovering around the $75 mark on Tuesday in light trading as gold prices climb higher and other commodities see gains.

In London, Brent crude oil futures for September 2010 deliery were trading at $75.60 a barrel, 07.45 on the ICE Futures Exchange, while the most actively traded gold contract, for December delivery gained $8.90, or 0.73%, at $1225.50 an ounce on the NYMEX.

Both Brent and WTI oil prices, unlike precious metals, are in uncertain waters as worries regarding the health of the US and European economies continue to worry investors.

In other commodity markets, corn prices climbed as the condition of the US crop worsened following excessive heat, while wheat rallied a day after plunging to the lowest level in almost two weeks.

December 2010 delivery corn on the Chicago Board of Trade rose as much as 0.9 percent to $4.265 a bushel and traded at $4.2425 at 11:40am Tokyo time.

“Corn prices got a boost from the US crop weather concern: hotter and drier in the southern Midwest, while there was higher precipitation in the north. This would reduce yields and lead to a cut in production amid increasing demand.” said Hiroyuki Kikukawa, general manager of research at IDO Securities.