Bloomberg News

Oil, Gold Decline; Copper Prices Increase: Commodities at Close

June 01, 2012

The Standard & Poor’s GSCI gauge of 24 commodities dropped 1.1 percent to 589.80 at 4:58 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials fell 0.9 percent to 1,425.613.

CRUDE OIL

Oil traded near the lowest close in seven months, heading for its longest weekly losing streak in five and a half years, after a Chinese manufacturing index missed estimates, adding to speculation demand will falter.

Oil for July delivery fell as much as 63 cents to $85.90 a barrel and was at $86.40 in electronic trading on the New York Mercantile Exchange at 2:36 p.m. Singapore time. The contract yesterday slid 1.5 percent to $86.53, the lowest close since Oct. 20. Prices are 13 percent lower this year and down 4.9 percent this week for a fifth weekly drop, the longest losing streak since January 2007.

NATURAL GAS

Natural gas futures dropped after a government report showed that production increased in March by 5 percent from last year, increasing concern that U.S. inventories will remain above the five-year average.

OIL PRODUCTS

The premium of gasoil, or diesel, to Asian marker Dubai crude rose 94 cents to $15.74 a barrel at 12:15 p.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. This crack spread, a measure of processing profit, gained by the largest percentage since Nov. 11 and is set for the first weekly gain in five. Gasoil swaps for July fell $1.18, or 1 percent, to $114.17 a barrel, PVM said. Prices are headed for a fifth weekly drop.

Naphtha swaps for July were at $827.75 a metric ton, according to PVM. The petrochemical and gasoline feedstock is poised for a 13th weekly decline.

Naphtha’s premium to London-traded Brent crude futures climbed $8.18 to $61.69 a ton, according to data compiled by Bloomberg. The difference, also known as the crack spread, has widened 26 percent from last week.

High-sulfur fuel oil was at a discount of 95 cents a barrel to Dubai crude, PVM data showed. The gap is set to widen for the first week in three, signaling increased losses for refiners turning crude into residual products.

Fuel oil swaps for July lost $12.75, or 2 percent, to $619 a ton, PVM said. Prices are poised for the fourth weekly decrease in five.

PRECIOUS METALS

Gold is seen declining for a second day and extending a fourth monthly loss in London on speculation a stronger dollar will curb demand for the metal as an alternative asset. Bullion for immediate delivery fell 0.2 percent to $1,557.82 an ounce by 9:12 a.m. in London. Prices dropped 6.3 percent in May for a fourth monthly decline, the longest losing run since 1999. August-delivery futures were 0.3 percent lower at $1,558.80 on the Comex in New York.

BASE METALS

Copper climbed for the first time in four days on speculation that China will do more to boost growth after a manufacturing gauge in the biggest consumer of the metal missed estimates. Nickel, zinc and aluminum also rose.

Copper for delivery in three months increased 0.7 percent to $7,473.25 a metric ton on the London Metal Exchange at 2:28 p.m. Seoul time. The price slumped 12 percent in May, erasing this year’s gains. The July-delivery contract advanced 0.3 percent to $3.3745 a pound on the Comex.

GRAINS, SOFT COMMODITIES

Corn gained for the first time in six days, paring a second weekly decline, on speculation that above-normal temperatures may hurt crop in the U.S., the world’s largest producer and exporter.

Corn for July delivery gained as much as 1 percent to $5.6075 a bushel on the Chicago Board of Trade and was at $5.59 at 2:13 p.m. Singapore time. Prices are poised to drop 3.4 percent this week. Soybeans for July delivery were little changed at $13.3925 a bushel, set for a 3.1 percent loss this week. July-delivery wheat was also little changed at $6.4325 a bushel. Futures are headed for a 5.4 percent decline this week.

Rubber declined to the lowest level in more than six months as a report showed manufacturing in China slowed last month, raising concern that demand will weaken.

The November-delivery contract lost 2.7 percent to end at 255.3 yen a kilogram ($3,252 a metric ton), the lowest settlement level for the most-active contract since Nov. 10, on the Tokyo Commodity Exchange. Futures fell 4.4 percent this week, declining for a fourth week and wiping out gains this year.

Palm oil dropped for a third day, extending the biggest monthly loss in more than two years, on speculation that demand for commodities may decline after China’s manufacturing index missed estimates.

To contact the reporter on this story: Ee Chien Chua in Singapore at echua27@bloomberg.net

To contact the editor responsible for this story: Linus Chua at lchua@bloomberg.net


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