Bloomberg News

Oil Falls for Second Week; Gold Declines: Commodities at Close

May 11, 2012

The Standard & Poor’s GSCI gauge of 24 commodities declined 0.8 percent to 642.23 at 5:06 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials dropped 0.08 percent to 1,510.1693.

CRUDE OIL

Oil fell in New York, heading for a second weekly drop, on concern Europe’s debt crisis will worsen and curb fuel demand as global crude supplies increase.

Crude for June delivery fell as much as $1.34 to $95.74 a barrel in electronic trading on the New York Mercantile Exchange, and was at $96.03 at 4:14 p.m. Singapore time. The contract yesterday rose 27 cents to $97.08. Prices are 2.5 lower this week and down 2.8 percent this year.

NATURAL GAS

Natural gas futures fell in New York after gaining yesterday on a smaller-than-forecast increase in U.S. stockpiles.

OIL PRODUCTS

The premium of gasoil, or diesel, to Asian marker Dubai crude was at $16.37 a barrel at 12:25 p.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. This crack spread has shrunk 3 percent so far this week after losing 0.2 percent last week. Gasoil swaps for June fell 90 cents, or 0.7 percent, to $124.70 a barrel, PVM data showed. That’s the lowest level since Jan. 3.

Fuel-oil swaps for June decreased $6.50, or 1 percent, to $671.75 a metric ton, according to PVM. Prices are down for a ninth day, the longest stretch of declines in data going back to August 2006. High-sulfur fuel oil was at a discount of $4.91 a barrel to Dubai crude, PVM said. The difference has widened 27 percent this week, the most in nine weeks, signaling increased losses for refiners turning oil into residual products.

PRECIOUS METALS

Gold slid to a four-month low and headed for the biggest weekly drop since December in London as concern Europe’s debt crisis is deepening strengthened the dollar and cut gold’s appeal as an alternative asset.

Bullion for immediate delivery fell as much as 1.3 percent to $1,573.82 an ounce, the lowest price since Jan. 3, and was at $1,575.98 by 8:57 a.m. in London. Prices are down 4 percent this week, the most since Dec. 16. June-delivery futures were 1.2 percent lower at $1,576.10 on the Comex in New York.

Silver for immediate delivery dropped as much as 1.9 percent to $28.51 an ounce, the lowest price since Jan. 3, and was last at $28.6325. Palladium slid as much as 2.3 percent to $600.75 an ounce, the lowest price since Dec. 14.

BASE METALS

Copper was set for a second weekly drop on concern that China may face a further slowdown and as JPMorgan Chase & Co.’s $2 billion surprise loss on synthetic credit securities underscored risks to global financial markets.

The metal for delivery in three months lost as much as 1.4 percent to $7,993.25 a metric ton on the London Metal Exchange, before trading at $8,005 at 3:37 p.m. Shanghai time. The contract is heading for a 2.1 percent drop this week, after a 2.9 percent slump last week.

GRAINS, SOFT COMMODITIES

Corn set to gain for the second time this week on speculation that a slump to the lowest price this year may spur importer purchases. Soybeans dropped.

Corn for July delivery gained as much as 0.6 percent to $5.91 a bushel on the Chicago Board of Trade and was at $5.8725 at 1:48 p.m. in Singapore. July-delivery soybeans dropped as much as 1.1 percent to $14.40 a bushel and traded at $14.4025. South America boosts demand. Wheat for July delivery was little changed at $6.0175 a bushel.

Rubber posted the biggest weekly loss in six months as political turmoil in Europe raised concerns the debt crisis may worsen and as JPMorgan Chase & Co. said it had a $2 billion trading loss.

October-delivery rubber lost 3.5 percent to 283.5 yen a kilogram ($3,555 a metric ton) on the Tokyo Commodity Exchange, the lowest settlement for a most-active contract since Jan. 16. The price slumped 10 percent this week, the biggest drop since the week ended Nov. 11.

Palm oil dropped to a two-month low, heading for a second weekly loss, after data showed exports from Malaysia fell and on concern that Europe’s debt crisis may worsen, damping investor demand for commodities.

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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