Crude oil prices fell Thursday after China announced that it will raise fuel prices starting on Friday.
The reports of the price hikes said that the price of gasoline will go up 16 percent and the price of diesel will rise by 18 percent, while prices for aviation kerosene and electricity will also rise.
July contracts for West Texas Intermediate crude had dropped $4.74 to $131.94 per barrel by the end of floor trade on the New York Mercantile Exchange, while Brent crude was down $2.61 to $133.83 on the ICE Futures Europe exchange in London.
Nymex July gasoline futures were down 9 cents to $3.38 per gallon while August heating oil was also down 9 cents, to $3.76 per gallon and August natural gas dropped 28 cents to $12.92 per 1,000 cubic feet.
Besides the news from China, gains for the US dollar as well as comments from Iraq several Western oil companies that will return them to activity there helped push prices lower, while little attention was paid to another attack on an oil facility in Nigeria.
In separate reports, the US Energy Information Administration reported that natural gas inventories were up by 57 billion cubic feet last week while the US Transportation Department reported that demand for gasoline fell in the United States in April as Americans drove 1.4 billion fewer highway miles compared to the same month last year.
Most precious metals prices rose Thursday while most base metals prices fell on the session.
August gold was up $10.50 to $904 per troy ounce in New York, while July silver added 13 cents to $17.47 per troy ounce but July platinum dropped $36.10 to $2,055.80 per troy ounce.
September copper was up 3 cents to $3.78 per pound in New York while three-month copper added $71 to $8,310 per tonne in London, but otherwise base metals prices saw declines.
Zinc was down $65 to $1,925 per tonne on a substantial gain in inventories, while aluminium was $20 lower to $3,072 per tonne, lead fell $38 to $1,822 per tonne, tin was $75 lower to $22,375 per tonne and nickel dropped $650 to $22,350 per tonne.
Grains prices were also down, with September wheat on the Chicago Board of Trade falling 23 cents to $8.98 per bushel on reports that Oklahoma’s winter wheat yield will likely be up from last year.
CBOT December corn was down 18 cents to $7.61 per bushel, while November soybeans dropped 21 cents to $15.21 per bushel.
