Bloomberg News

Oil, Gold, Copper Fall; Natural Gas Rises: Commodities at Close

June 20, 2012

The Standard & Poor’s GSCI gauge of 24 commodities was unchanged at 586.33 at 4:49 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials dropped 0.04 percent to 1452.503.

CRUDE OIL

Brent oil dropped for a third day in London on speculation that U.S. supplies may have shrunk less than estimated, while investors awaited the outcome of a Federal Reserve monetary policy meeting.

On the New York Mercantile Exchange, oil for July delivery, which expires today, was at $83.58 a barrel, down 45 cents, in electronic trading. It rose 0.9 percent yesterday to $84.03, the highest close since June 15. The more-actively traded August contract slid 46 cents to $83.89 a barrel. Front-month prices are down 15 percent this year.

NATURAL GAS

Natural-gas futures rebounded in New York after sliding the most in a week yesterday.

OIL PRODUCTS

High-sulfur fuel oil rose 14 cents to a premium of 25 cents a barrel to Asian marker Dubai crude at 11:30 a.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. The gap widened for the first time this week.

Fuel oil swaps for July climbed $4.25, or 0.7 percent, to $597.75 a metric ton, PVM said. Prices rebounded from the lowest in two weeks. The premium of 180-centistoke fuel oil to 380- centistoke grade, or the viscosity spread, was unchanged after falling to $9.50. This means bunker, or marine fuel, moved in tandem with higher-quality supplies used in power stations.

Naphtha swaps for July dropped $5.50, or 0.7 percent, to $738.50 a ton, according to PVM. The petrochemical and gasoline feedstock is at the lowest in records that started in January 2011. Naphtha’s premium to London-traded Brent crude futures lost $5.50 to $17.04 a ton, according to data compiled by Bloomberg. This crack spread, a measure of processing profit, narrowed for a second day.

Gasoline’s premium to naphtha yesterday slid to $18.66 a barrel, the lowest since April 26, data compiled by Bloomberg showed. A narrowing reforming margin indicates it is less profitable to make motor fuel.

The premium of gasoil, or diesel, to Dubai crude was down 53 cents at $15.67 a barrel, according to PVM. The difference, also known as the crack spread, was the narrowest in a week.

PRECIOUS METALS

Gold is set to decline for a second day in London as investors await the outcome of the Federal Reserve’s monetary- policy meeting.

Bullion for immediate delivery fell 0.1 percent to $1,617.02 an ounce by 9:16 a.m. in London. August-delivery futures were 0.4 percent lower at $1,617.50 on the Comex in New York.

BASE METALS

Copper declined as inventories in London Metal Exchange warehouses advanced to the highest level in almost two months and on speculation that stockpiles in Shanghai may snap 10 weeks of losses.

Three-month metal lost as much as 0.6 percent to $7,567 a metric ton on the LME before trading at $7,595 by 2:42 p.m. in Shanghai. Copper for September delivery dropped 0.2 percent to $3.4350 a pound on the Comex in New York.

GRAINS, OILSEEDS, SOFT COMMODITIES

Palm oil climbed the most in almost 19 months on concern that dry weather may damage U.S. soybean crops, lowering global supplies and increasing demand for alternative cooking oils.

The September-delivery contract advanced as much as 3.6 percent to 3,053 ringgit ($967) a metric ton on the Malaysia Derivatives Exchange, the biggest intraday gain for the most- active contract since November 2010. Futures ended the morning session at 3,038 ringgit in Kuala Lumpur.

Palm oil for January delivery gained 2.2 percent to 7,988 yuan ($1,257) a ton on the Dalian Commodity Exchange. Soybean oil for delivery in the same month advanced 1.6 percent to 9,470 yuan a ton.

Soybeans advanced, extending the biggest gain since March, as dry weather persisted in the U.S. Midwest, deepening concern supply will trail a government forecast.

November-delivery soybeans gained as much as 0.8 percent to $13.9575 a bushel on the Chicago Board of Trade after climbing 3.4 percent yesterday. The contract traded at $13.905 at 3:25 p.m. Singapore time, up for a fourth straight day.

Corn for December delivery fell 0.4 percent to $5.615 after jumping 11 percent in the past two days, the most since October 2010. Wheat for December delivery added 0.2 percent to $6.9475 a bushel.

Rubber gained for a second day this week as better-than- expected Japanese trade data raised optimism demand may improve, amid speculation that the Federal Reserve will consider further economic stimulus.

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


Steve Ballmer, Power Forward
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus