Bloomberg News

Oil Heads for Weekly Drop, Gold Advances: Commodities at Close

December 09, 2011

Dec. 9 (Bloomberg) -- The Standard & Poor’s GSCI gauge of 24 commodities slid 0.4 percent to 643.63 as of 4:38 p.m. in Singapore. The UBS Bloomberg CMCI index of 26 raw materials dropped 0.3 percent to 1,528.412.

CRUDE OIL

Oil fell, heading for the biggest weekly decline since September, as investors speculated that Europe’s debt crisis will weaken the global economy and curb demand for commodities.

Crude for January delivery fell as much as 79 cents to $97.55 in electronic trading on the New York Mercantile Exchange. Prices are down 3.3 percent this week, poised for the biggest decline since the period ended Sept. 23. Futures have gained 6.9 percent this year after climbing 15 percent in 2010.

Brent oil for January settlement on the London-based ICE Futures Europe exchange slid 85 cents, or 0.8 percent, to $107.26 a barrel. The European benchmark contract was at a premium of $9.61 to New York-traded West Texas Intermediate grade. The spread was a record $27.88 on Oct. 14. Crude oil futures: NI CRMKTS <GO>

NATURAL GAS

Natural gas futures slid in New York. Gas for January delivery fell 0.6 percent to $3.436 per million British thermal units on the New York Mercantile Exchange. Prices are 22 percent lower this year. U.S. natural gas: NI NUSMKT <GO>

OIL PRODUCTS

Naphtha’s premium to London-traded Brent crude futures climbed $6.03 to $104.78 a metric ton at 12 p.m. Singapore time, according to data compiled by Bloomberg. This crack spread, a measure of refining profit, has widened 59 percent from last week and is headed for the third gain in four weeks.

The premium of gasoil, or diesel, to Asian marker Dubai crude slid 4 cents to $18.60 a barrel, according to PVM Oil Associates Ltd., a broker. This crack spread is poised to increase this week for the first time in four weeks.

Fuel oil’s discount to Dubai crude widened 17 cents to $5.69 a barrel, according to PVM. The difference is set to widen for a second week. Asia oil products: NI OPAMKT <GO>

BASE METALS

Three-month delivery copper fell as much as 0.3 percent to $7,685 a metric ton on the London Metal Exchange, and traded at $7,695 by 3:05 p.m. Shanghai time. The contract lost 2.5 percent this week

On the LME, aluminum was unchanged at $2,065 a ton. Lead fell 0.2 percent to $2,099 a ton, and nickel dropped 0.8 percent to $18,150 a ton. Zinc rose 0.3 percent to $1,990 a ton, and tin gained 0.3 percent to $20,200 a ton. Base metals markets: NI BMMKTS <GO>

PRECIOUS METALS

Immediate-delivery gold gained as much as 0.4 percent to $1,715.85 an ounce before trading at $1,711.35 at 1:47 p.m. in Singapore. The February-delivery contract was little changed at $1,713.80 an ounce on the Comex in New York.

Immediate-delivery palladium fell 1.5 percent to $663 an ounce after a 0.3 percent gain earlier. The metal is still set to be the only gainer this week among the four main precious metals, heading for a 3.1 percent climb amid speculation that increased auto sales will boost demand. The metal used in autocatalysts rallied 13 percent last week.

Spot platinum traded little changed at $1,492 an ounce. Silver was also little changed at $31.7125 an ounce. Precious metal markets: NI PCMKTS <GO>

GRAINS, OILSEEDS, LIVESTOCK

March-delivery wheat dropped as much as 0.8 percent to $5.92 per bushel on the Chicago Board of Trade before trading at $5.9575 at 2:09 p.m. in Singapore. Futures are poised to decline 4.8 percent this week.

Corn for delivery in March declined as much as 0.5 percent to $5.9725 a bushel before trading at $5.985. Soybeans for January delivery slid as much as 0.4 percent to $11.275 a bushel before trading at $11.285. The oilseed is heading for a 0.6 percent loss this week.

Hog futures for February settlement declined 1.7 percent to settle at 87.25 cents a pound at 1 p.m. on the Chicago Mercantile Exchange yesterday. Grain markets: NI GRMKTS <GO> Livestock markets: NI LVMKTS <GO>

SOFT COMMODITIES

Cocoa for March delivery dropped 0.5 percent to settle at $2,131 a metric ton on ICE Futures U.S. in New York yesterday. The price dropped for the 11th straight session, the longest slump since at least 1961, according to Bloomberg data. Earlier, the commodity touched $2,078, the lowest for a most- active contract since November 2008. Soft commodities markets: NI SOMKTS <GO>

--Editor: Alexander Kwiatkowski

To contact the reporter on this story: Alexander Kwiatkowski in Singapore at akwiatkowsk2@bloomberg.net

To contact the editor responsible for this story: Stuart Wallace at swallace6@bloomberg.net


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