Bloomberg News

Oil Rises on Iran, Nigeria; Gold Advances: Commodities at Close

January 12, 2012

Jan. 12 (Bloomberg) -- The Standard & Poor’s GSCI gauge of 24 commodities rose 0.5 percent to 666.89 as of 5:02 p.m. in Singapore. The UBS Bloomberg CMCI index of 26 raw materials climbed 0.5 percent to 1569.226.

CRUDE OIL

Oil rose from the lowest settlement in almost two weeks in New York on concern that a strike in Nigeria and the threat of sanctions against Iran’s nuclear program will curb crude supplies.

Crude for February delivery gained as much as 62 cents to $101.49 a barrel in electronic trading on the New York Mercantile Exchange. The contract yesterday slipped $1.37 to $100.87, the lowest close since Dec. 30. Prices are up 2.4 percent this month.

Brent oil was trading 70 cents higher at $112.94 a barrel on the London-based ICE Futures Europe exchange. The European benchmark contract was at a $11.67 premium to West Texas Intermediate futures. The spread was a record $27.88 on Oct. 14. Crude markets: NI CRMKTS <GO>

NATURAL GAS

Futures fell in New York. Natural gas for February delivery declined 0.7 cents to $2.767 per million British thermal units on the New York Mercantile Exchange. The futures have slid 7.4 percent this year. U.S. natural gas market :NI NUSMKT <GO>

OIL PRODUCTS

Gasoil’s premium to Dubai crude rose 23 cents, or 1.2 percent, to $19.50 a barrel at 10:43 a.m. Singapore time, according to PVM Oil Associates Ltd., a London-based broker. That’s the widest gap since Nov. 21.

Fuel oil’s discount to Dubai crude narrowed 12 cents, or 8.3 percent, to $1.52 a barrel, PVM data showed. Naphtha swaps traded at a premium of $89.33 a ton to London-traded Brent crude futures, down from $104.88 yesterday. Oil Products markets: NI OPAMKT <GO>

PRECIOUS METALS

Cash gold gained as much as 0.3 percent to $1,646.65 an ounce and traded at $1,645.55 at 2:52 p.m. in Singapore. Bullion climbed to a one-month high of $1,647.45 yesterday on Chinese demand. Spot platinum gained for a fourth day, adding as much as 0.7 percent to $1,505 an ounce, the highest since Dec. 12. The metal, used in auto catalytic converters, has risen 7.6 percent this year, on signs the U.S. economy is recovering and global automobile sales may increase.

Cash silver rose for a fourth day, climbing 0.3 percent to $30.05 an ounce. Palladium also gained for a fourth day, advancing 0.8 percent to $646 an ounce. Precious metal markets: NI PCMKTS <GO>

BASE METALS

Copper for delivery in three months climbed as much as 0.8 percent to $7,845 a metric ton on the London Metal Exchange and traded at $7,825 at 3:10 p.m. Shanghai time. The March-delivery contract on the Shanghai Futures Exchange closed 1 percent higher at 57,400 yuan ($9,087) a ton.

On the LME, aluminum gained 0.2 percent to $2,169.75 a ton, lead climbed 0.5 percent to $2,000 a ton and nickel rose 0.2 percent to $19,490 a ton. Zinc was little changed at $1,937 a ton and tin dropped 0.1 percent to $20,501 per ton. Base metals markets: NI BMMKTS <GO>

GRAINS, SOFT COMMODITIES

Soybeans for March delivery gained as much as 0.5 percent to $12.09 a bushel on the Chicago Board of Trade, rebounding from the biggest decline at close in seven weeks. Futures were at $12.0775 at 2:46 p.m. Singapore time. March-delivery corn climbed 0.5 percent to $6.55 a bushel.

Wheat for March delivery gained 0.5 percent to $6.44 a bushel.

Arabica coffee for March delivery advanced 4 percent to settle at $2.349 a pound on ICE Futures U.S. yesterday, the biggest increase since Nov. 30. Earlier, the price reached $2.352, the highest since Dec. 7. Soft commodity markets: NI SOMKTS <GO>

--Editor: Alexander Kwiatkowski

To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net


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