Bloomberg News

Oil Rises as Supplies Fall Most in Decade: Commodities at Close

December 22, 2011

Dec. 21 (Bloomberg) -- The Standard & Poor’s GSCI gauge of 24 commodities rose 1 percent to close at 640.91 at 3:47 p.m. in New York, led by corn, wheat and cattle.

The UBS Bloomberg CMCI index of 26 raw materials climbed 0.6 percent to 1,509.6.

CRUDE OIL

Crude oil rose for the third straight day after weekly U.S. inventories declined the most in a decade.

The Energy Department reported supplies fell 10.6 million barrels last week to 323.6 million. It was the largest decline since Feb. 16, 2001, and almost five times the 2.13 million drop that was the median of 12 analyst estimates in a Bloomberg News survey. Oil also gained as imports slipped to a three-year low.

Oil futures for February delivery increased 1.5 percent to $98.67 a barrel on the New York Mercantile Exchange. The price has gained 8 percent this year.

Brent-oil futures for February rose 98 cents, or 0.9 percent, to $107.71 a barrel on the London-based ICE Futures Europe exchange.

Trafigura Beheer BV failed to buy North Sea Forties crude at a smaller premium to dated Brent. Vitol Group sold Russian Urals blend in Northwest Europe at a lower price.

Royal Dutch Shell Plc shut its 200,000 barrel-a-day Bonga field off Nigeria after crude leaked during a tanker loading.

Crude oil futures: NI CRMKTS <GO>

Europe physical crude: NI CNSMKT <GO>

U.S. physical crude: NI CRGMKT <GO>

Asia physical crude: NI CRAMKT <GO>

OIL PRODUCTS

Heating oil advanced to a one-week high after a report showed that stockpiles of distillate fuels fell last week.

Heating-oil futures for January delivery gained 2.1 percent to $2.9087 a gallon on the Nymex, the highest settlement since Dec. 13.

Gasoline futures for January delivery rose 1.6 percent to $2.6199 a gallon. The price has gained 6.8 percent this year.

U.S. oil product futures: NI OPFMKT <GO>

U.S. oil products: NI OPUMKT <GO>

Asia oil products: NI OPAMKT <GO>

Europe oil products: NI OPEMKT <GO>

NATURAL GAS

Natural gas advanced for the second straight day as energy prices rose following the government report showing a decline in crude-oil inventories.

Gas futures for January delivery rose 0.9 percent to $3.155 per million British thermal units on the Nymex. The price declined 28 percent this year.

U.K. natural gas tumbled as milder weather sapped demand for the heating fuel and deliveries from Norway increased.

Gas for January dropped as much as 0.85 pence to 55.65 pence a therm in London, according to broker prices compiled by Bloomberg. It was at 55.8 pence as of 4:30 p.m. London time. That’s equal to $8.74 per Btu. A therm is 100,000 Btu.

U.S. natural gas: NI NUSMKT <GO>

U.K. natural gas: NI NUKMKT <GO>

GRAINS, OILSEEDS

Corn rose, capping the longest rally since August, and soybeans climbed to a one-month high as adverse weather threatens crops in South America, boosting demand for U.S. supplies. Wheat also advanced.

Corn futures for March delivery rose 1.6 percent to $6.165 a bushel on the Chicago Board of Trade. The price gained for the fourth straight session, the longest rally since late August. Earlier, the grain reached $6.19, the highest for a most-active contract since Nov. 18.

Soybean futures for March delivery climbed 0.8 percent to $11.6325 a bushel. Earlier, the price reached $11.685, the highest since Nov. 21. The oilseed climbed for the fifth consecutive session, the longest rally since mid-October.

Wheat futures for March delivery rose 1.5 percent to $6.17 a bushel. The price climbed for the fourth straight session, the longest rally since early November.

Grain markets: NI GRMKTS <GO>

PRECIOUS METALS

Gold dropped from a one-week high as a rebound by the dollar curbed demand for the precious metal as alternative asset.

Gold futures for February delivery dropped 0.2 percent to settle at $1,613.60 an ounce on the Comex in New York. Earlier, the price reached $1,643.70, the highest since Dec. 14. The metal, down 0.5 percent this quarter, has climbed 14 percent in 2011.

Silver futures for March delivery fell 1 percent to $29.249 an ounce on the Comex. The metal has declined 5.5 percent this year.

On the Nymex, platinum futures for January delivery fell 0.1 percent to $1,431.70 an ounce. The price has dropped 19 percent this year.

Palladium futures for March delivery gained 0.9 percent to $634.10 an ounce. The metal has declined 21 percent in 2011.

Precious metal markets: NI PCMKTS <GO>

BASE METALS

Copper rose to a one-week high as imports of refined metal by China, the world’s biggest user, climbed to the highest since June 2009, while Premier Wen Jiabao pledged to bolster exports.

Copper futures for March delivery rose 0.7 percent to $3.3945 a pound on the Comex. Earlier, the price reached $3.437, the highest since Dec. 13. The metal has dropped 24 percent this year.

On the London Metal Exchange, copper for delivery in three months rose 0.6 percent to $7,455 a ton ($3.38 a pound).

Tin, nickel and lead also climbed in London. Aluminum and zinc fell.

Base metals markets: NI BMMKTS <GO>

SOFT COMMODITIES

Sugar fell for the first time in four sessions on speculation that supplies will climb as harvesting accelerates in the Northern Hemisphere.

Raw sugar for March delivery fell 0.7 percent to 23.32 cents a pound on ICE Futures U.S. in New York. The price, up 3.3 percent in the previous three sessions, has dropped 27 percent in 2011 as demand eased and production increased.

Cocoa futures for March delivery climbed 2.7 percent to $2,244 a ton. Earlier, the price reached $2,247, the highest since Dec. 14.

Arabica-coffee futures for March delivery dropped 1.3 percent to $2.199 a pound.

Cotton futures for March delivery climbed less than 0.1 percent to 86.85 cents a pound. Orange-juice futures for March delivery dropped 0.8 percent to $1.632 a pound.

In London futures trading, cocoa gained, while refined sugar and robusta coffee declined.

Soft commodities markets: NI SOMKTS <GO>

LIVESTOCK

Hogs dropped for the second straight day on signs of slowing demand for U.S. pork. Cattle also fell.

Hog futures for February settlement fell 1 percent to 83.275 cents a pound on the Chicago Mercantile Exchange. The price has climbed 4.4 percent in 2011.

Cattle futures for February delivery declined 0.2 percent to settle at $1.2045 a pound. The commodity has gained 11 percent this year.

Feeder-cattle futures for March settlement dropped 0.5 percent to $1.4685 a pound.

Livestock markets: NI LVMKTS <GO>

--With assistance from Isis Almeida, Agnieszka Troszkiewicz, Sherry Su and Ben Farey in London, Gene Laverty in Calgary, Jeff Wilson and Elizabeth Campbell in Chicago and Moming Zhou, Christine Buurma, Yi Tian and Joe Richter in New York. Editors: Patrick McKiernan, Daniel Enoch

To contact the reporter on this story: Patrick McKiernan in New York at pmckiernan@bloomberg.net

To contact the editor responsible for this story: Patrick McKiernan at pmckiernan@bloomberg.net


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