Bloomberg News

Oil, Gold, Copper Rise; Natural Gas Falls: Commodities at Close

June 06, 2012

The Standard & Poor’s GSCI gauge of 24 commodities rose 0.9 percent to 590.6 at 5:24 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials jumped 1.1 percent to 1,430.453.

CRUDE OIL

Oil rose for a third day in New York on shrinking stockpiles and signs of economic improvement in the U.S., the world’s largest consumer of crude.

West Texas Intermediate futures gained as much as 1.3 percent. Crude inventories fell 1.8 million barrels last week to 384.1 million barrels, the industry-funded American Petroleum Institute said yesterday. An Energy Department report today may show supplies slid by 500,000 barrels, according to a Bloomberg News survey. U.S. service-industry growth unexpectedly increased, and Australia’s economic expansion beat estimates.

Oil for July delivery climbed as much as $1.10 to $85.39 a barrel in electronic trading on the New York Mercantile Exchange and was at $85.36 at 9:19 a.m. London time. The contract yesterday rose 0.4 percent to $84.29, the highest close since May 31. Prices are 14 percent lower this year.

NATURAL GAS

Natural gas futures fell after gaining for two days on forecasts for hotter-than-normal weather that may increase demand at power plants.

OIL PRODUCTS

Singapore gasoil swaps for July were unchanged at $110.85 a barrel. The premium of gasoil to Dubai crude fell 85 cents, or 5.4 percent, to $14.95 a barrel. Jet fuel traded at a premium of 70 cents a barrel to gasoil. This spread, also known as the regrade, has narrowed 44 percent from May 30, 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. 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, narrowed 17 cents to $2.04 a barrel at 10.02 a.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. Yesterday the spread was at $2.22 a barrel, the widest since May 16.

PRECIOUS METALS

Gold rose to a four-week high in London as a weaker dollar increased the metal’s appeal as an alternative asset.

Bullion for immediate delivery rose as much as 1.3 percent to $1,637.40 an ounce, the highest price since May 8, and was at $1,636.60 by 9:20 a.m. in London. August-delivery futures were 1.3 percent higher at $1,637.40 on the Comex in New York.

The metal is up 4.7 percent this year after 11 consecutive annual increases. Holdings in the SPDR Gold Trust, the biggest exchange-traded product backed by bullion, were unchanged at 1,273.9 metric tons yesterday, the company’s website showed.

BASE METALS

GRAINS, SOFT COMMODITIES

Corn advanced as concerns persisted that the U.S. may miss a government forecast for record output because rains in the Midwest may not be enough to rebuild soil moisture that’s been drained by hot weather. Wheat climbed.

July-delivery corn gained 0.9 percent to $5.7275 a bushel on the Chicago Board of Trade at 2:57 p.m. in Singapore. Wheat for July delivery rose 0.5 percent to $6.16 a bushel in Chicago.

Soybeans for November delivery increased 0.8 percent to $12.8775 a bushel.

Rubber declined to the lowest level in almost 31 months as a producer group raised its output forecast for this year, citing higher production than expected in Thailand and Indonesia, the top two exporters.

The November-delivery contract fell 1.2 percent to end at 241 yen a kilogram ($3,045 a metric ton), the lowest settlement for a most-active contract since November 2009, on the Tokyo Commodity Exchange. Futures have lost 8.5 percent this year.

Palm oil gained for a second day on concern that stockpiles in Malaysia, the second-largest supplier after Indonesia, may have declined in May to the lowest level in more than a year.

To contact the reporter on this story: Sharon Chen in Singapore at schen462@bloomberg.net

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


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