Bloomberg News

Oil Surges Above $100 on Hormuz Reports: Commodities at Close

December 13, 2011

Dec. 13 (Bloomberg) -- The Standard & Poor’s GSCI gauge of 24 commodities gained 1.3 percent to 647.15 as of 4:55 p.m. in London. The UBS Bloomberg CMCI index of 26 raw materials added 0.5 percent to 1,517.403.

CRUDE OIL

Oil surged above $100 a barrel on speculation supplies will be disrupted after a report that Iran will hold drills to close the Strait of Hormuz and that the Federal Reserve may announce additional stimulus measures.

Crude for January delivery gained $2.04, or 2.1 percent, to $99.81 a barrel on the New York Mercantile Exchange. Earlier, futures touched $101.25 a barrel.

Brent oil for January settlement increased $1.91, or 1.8 percent, to $109.17 a barrel on the London-based ICE Futures Europe exchange.

Crude oil futures: NI CRMKTS <GO>

OIL PRODUCTS

European Union carbon allowance prices fell as much as 6.1 percent after Canada announced it was pulling out of the Kyoto Protocol and the euro headed for its lowest close against the dollar in 11 months.

EU permits for December delivery eased as low as 7.08 euros ($9.34) a metric ton on the ICE Futures Europe exchange in London, the cheapest intraday price in five days.

Gasoline futures surged on speculation that the Federal Reserve may announce further quantitative easing and on fears that oil exports from the Persian Gulf might be disrupted.

Gasoline for January delivery rose 5.89 cents, or 2.3 percent, to $2.6225 a gallon on the New York Mercantile Exchange, after touching $2.6754 earlier. Gasoline has gained 6.9 percent in 2011.

January-delivery heating oil rose 3.95 cents, or 1.4 percent, to $2.9356. Prices are up 15 percent this year.

Naphtha’s premium to London-traded Brent crude futures slid $4.12 to $88.53 a metric ton, according to data compiled by Bloomberg. This crack spread is a measure of profit from making the petrochemical feedstock.

Oil Products Europe: NI OPEMKT <GO> EU Carbon Emissions: NI ECBMKT <GO>

NATURAL GAS

U.K. natural gas contracts rose after an outage at Norway’s largest export plant.

Gas for January rose as much as 0.80 pence to 59 pence a therm, according to broker prices on Bloomberg. That’s equal to $9.17 a million British thermal units. The contract has fallen 20 percent since the start of the winter heating season on Oct. 1 because of milder-than-normal weather and high inventories.

U.K. natural gas: NI NUKMKT <GO> Gas market: NI GASMARKET <GO> Americas natural gas: NI AGASMARKET <GO> European natural gas: NI EGASMARKET <GO>

SOFT COMMODITIES

Cocoa rose for a second day in New York, following the longest slump in at least 50 years, after Olam International Ltd. said output will trail consumption in the season started Oct. 1.

Cocoa for March delivery advanced 2.2 percent to $2,250 a ton on ICE Futures U.S. in New York.

Raw sugar futures for March delivery fell 0.04 percent to 23.28 cents a pound on ICE.

Arabica coffee futures for March delivery was up 0.9 percent to $2.2295 a pound in New York.

Soft commodities markets: NI SOMKTS <GO>

GRAINS, OILSEEDS

Corn gained for the first time in three sessions and soybeans rose on speculation that adverse weather threatens to reduce crop yields in South America.

Corn futures for March delivery rose 0.1 percent to $5.9475 a bushel on the Chicago Board of Trade. Before today, the grain dropped 5.6 percent this year as rising world production reduced demand for U.S. supplies.

Soybean futures for January delivery gained 0.6 percent to $11.185 a bushel. Yesterday, the price touched $10.95, the lowest for a most-active contract since October 2010. Before today, the oilseed slumped 21 percent this year on rising world production and U.S. inventories.

Wheat futures rose the most in a week after Egypt bought grain from France for the first time since June, signaling supplies from Russia and Eastern Europe may be tightening.

Wheat futures for March delivery rose 1.5 percent to $6.03 a bushel on the Chicago Board of Trade, the biggest gain since Dec. 2.

Grain markets: NI GRMKTS <GO>

PRECIOUS METALS

Gold futures for February delivery dropped $6.10, or 0.4 percent, to $1,662.10 an ounce on the Comex in New York. Earlier, the price gained as much as 0.8 percent.

Precious metal markets: NI PCMKTS <GO>

BASE METALS

Copper may rise in New York rebounding from an almost two- week low, on speculation the U.S. Federal Reserve will act to bolster the economy in the country, the world’s second-biggest consumer of the metal.

Copper for March-delivery rose 0.1 percent to $3.4665 a pound on the Comex in New York. The metal dropped as much as 3.4 percent yesterday, declining to the lowest since Nov. 30. Copper for three-month delivery rose 0.3 percent to $7,630 a metric ton on the London Metal Exchange.

Base metals markets: NI BMMKTS <GO>

LIVESTOCK

Hog futures declined for the fourth time in five sessions on speculation that demand for U.S. pork is slowing. Cattle prices rose.

Hog futures for February settlement dropped 0.6 percent to 86.1 cents a pound on the Chicago Mercantile Exchange. Through yesterday, the price was up 8.6 percent in 2011.

Cattle futures for February delivery rose 0.2 percent to $1.18875 a pound in Chicago. Before today, the commodity rose 9.5 percent in 2011.

Feeder-cattle futures for January settlement climbed 0.4 percent to $1.43625 a pound.

Livestock markets: NI LVMKTS <GO>

--Editors: John Deane, Nicholas Larkin

To contact the reporter on this story: John Deane in London at jdeane3@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net -0- Dec/13/2011 17:37 GMT


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