Bloomberg News

Oil, Copper Climb; Precious Metals Fall: Commodities at Close

June 05, 2012

The Standard & Poor’s GSCI gauge of 24 commodities dropped 1.7 percent to 582.74 at 4:51 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials jumped 6.7 percent to 1,421.383.

CRUDE OIL

Oil gained a second day in New York before a government report that may show stockpiles dropped forthe first time in 11 weeks in the U.S., the world’s biggest consumer of crude.

Oil for July delivery gained as much as 94 cents to $84.92 a barrel in electronic trading on the New York Mercantile Exchange and was at $84.41 at 2:48 p.m. Singapore time. The contract yesterday rose 0.9 percent to $83.98, the highest close since May 31. Prices are 15 percent lower this year.

NATURAL GAS

Natural gas rebounded after forecasts for cooler weather in the eastern U.S. pulled futures to a four-week low in New York.

OIL PRODUCTS

Singapore gasoil swaps for July rose $2.95, or 2.7 percent, to $111.85 a barrel, PVM data showed. The premium of gasoil to Dubai crude was at $15.60 a barrel, up 1 cent. Jet fuel traded at a premium of 75 cents a barrel to gasoil, up 5 cents. This spread, also known as the regrade, has narrowed 44 percent from May 29, signaling it is less profitable to make aviation fuel compared with a week earlier.

Naphtha swaps for July rose $28, or 3.7 percent, to $780.50 a metric ton at 10:08 a.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. Yesterday, prices dropped to $752.50 a ton, the lowest since Bloomberg records began in January 2011.

Japan naphtha’s premium to London-traded Brent crude futures rose $23 to $30.79 a ton, according to data compiled by Bloomberg.

Singapore fuel oil’s discount to Dubai crude, a measure of refining losses from the fuel, widened to $2.35 a ton from $1.58 yesterday, according to data from PVM Oil Associates Ltd. The spread is at the widest since May 16.

PRECIOUS METALS

Gold fell for a second day, reversing an earlier advance, as the euro weakened against the dollar before finance ministers and central bank governors from the Group of Seven nations hold a call on Europe’s debt crisis.

Immediate-delivery gold slid as much as 0.4 percent to $1,612.80 an ounce and was at $1,614.70 at 4:14 p.m. in Singapore. The metal earlier climbed 0.3 percent along with Asian stocks and other commodities on speculation that policy makers from the U.S. to China will take steps to boost economies after data signaled slowing growth.

August-delivery bullion was little changed at $1,615.70 an ounce on the Comex in New York, after rising as much as 0.7 percent. Holdings in the SPDR Gold Trust, the biggest exchange- traded product backed by bullion, stood unchanged at 1,273.88 metric tons yesterday, after climbing on June 1 for the first time since May 24, the company’s website showed.

BASE METALS

Copper advanced for the first time in five days, rallying from the lowest level in more than five months, amid speculation global policy makers will take steps to stimulate economic growth.

GRAINS, SOFT COMMODITIES

Corn dropped after climbing the most in two weeks as crop conditions in the U.S., the world’s biggest exporter, held steady last week after rain revived some dry fields in the Midwest and South. Soybeans advanced.

Corn for July delivery fell as much as 0.4 percent to $5.66 a bushel on the Chicago Board of Trade before trading at $5.6725 at 3:10 p.m. in Singapore. Earlier, the price rose as much as 0.4 percent. Futures jumped 3 percent yesterday, the biggest gain for a most-active contract since May 16, on concern dry weather may threaten crops in the Midwest.

Rubber advanced as a four-day decline to the lowest level in 30 months attracted buyers on speculation that global policy makers may take steps to stimulate growth.

The November-delivery contract gained as much as 2.4 percent to 248.5 yen a kilogram ($3,175 a metric ton) before settling at 243.8 yen on the Tokyo Commodity Exchange. Futures plunged to 240.3 yen yesterday, the lowest price since Nov. 30, 2009, as data from the U.S. and China raised concern that slowing expansion may cut demand.

Soybeans for November delivery was little changed at $12.69 a bushel on the Chicago Board of Trade. Soybean oil for July gained 0.3 percent to 48.46 cents a pound. Palm oil and soybean oil are both used in foods and fuels.

Palm oil gained for the first time in five days as the lowest price in seven months spurred buying by countries stockpiling to meet higher demand during the Muslim fasting month of Ramadan.

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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