Bloomberg News

Oil Falls on Europe; Gold, Rubber Decline: Commodities at Close

June 26, 2012

The Standard & Poor’s GSCI gauge of 24 commodities rose 0.1 percent to 568.28 at 5:05 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials fell 0.1 percent to 1425.258.

CRUDE OIL

Oil fell for a second day in New York amid speculation a meeting of European leaders this week will fail to halt a debt crisis that threatens to slow the economy and curb fuel demand.

Oil for August delivery fell as much as 36 cents to $78.85 a barrel in electronic trading on the New York Mercantile Exchange and was at $78.97 at 3 p.m. Singapore time. The contract yesterday slipped 55 cents to $79.21, the lowest close since June 21. Prices have fallen 23 percent this quarter, the biggest drop since the final three months of 2008.

NATURAL GAS

Natural gas declined from a one-month high in New York as Tropical Storm Debby was forecast to move away from production platforms in the Gulf of Mexico.

OIL PRODUCTS

Singapore gasoil swaps for July dropped 5 cents to $106.50 a barrel, at 10:22 a.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. The premium of gasoil to Dubai crude, known as the crack spread, declined for a third day by 37 cents, or 2.2 percent, to $16.81 a barrel today.

Jet fuel traded at a premium of $1 a barrel to gasoil. This spread, also known as the regrade, stayed unchanged from yesterday.

Naphtha swaps for July rose $15.25, or 2.2 percent, to $725.25 a metric ton, PVM data showed. Japan naphtha’s premium to London-traded Brent crude futures climbed for a second day by gaining $12.84 to $37.17 a ton, according to data compiled by Bloomberg. This shows increasing refining profit from the petrochemical and gasoline feedstock.

Singapore fuel oil’s premium to Dubai crude, a measure of refining profits for the fuel, increased 47 cents to 94 cents a barrel, PVM data showed.

PRECIOUS METALS

Gold may drop for the first time in three days as some investors sold the metal after it advanced the most in two weeks, before European leaders meet to address the region’s debt crisis. Silver, platinum and palladium fell.

Spot gold fell as much as 0.2 percent to $1,581.63 an ounce, and was at $1,583.32 at 3:04 p.m. in Singapore, after gaining 0.2 percent earlier. The metal rose 0.8 percent yesterday and 0.4 percent on June 22. August-delivery bullion lost as much as 0.4 percent to $1,582 an ounce on the Comex in New York, and was last at $1,583.80.

BASE METALS

Copper climbed for a second day, paring a quarterly drop, after data showed that demand for new U.S. homes rose by more than forecast last month.

Three-month copper rose as much as 0.9 percent to $7,402 a metric ton on the London Metal Exchange, before trading at $7,347.50 at 3:48 p.m. in Shanghai. The metal, set for the first quarterly fall in three, has lost 3.3 percent this year. Comex September-futures were little changed at $3.3225 per pound.

GRAINS, OILSEEDS, SOFT COMMODITIES

Palm oil dropped on speculation that output in Malaysia, the second-largest grower after Indonesia, may surge this month as the high-production season approaches, boosting global cooking-oil supplies.

The September-delivery contract declined as much as 0.7 percent to 3,010 ringgit ($942) a metric ton on the Malaysia Derivatives Exchange and traded at 3,023 ringgit at 4:05 p.m. in Kuala Lumpur. Prices have lost 12 percent this quarter.

Corn advanced to the highest level in more than seven months as dry weather wilted plants in the U.S., producer of 40 percent of the global crop, curbing supply.

December-delivery corn gained as much as 2.8 percent to $6.1075 a bushel on the Chicago Board of Trade, the highest level for the contract since Nov. 9. Futures surged yesterday by 7.2 percent or 40 cents, the most allowed by the exchange. They traded at $6.095 at 2:27 p.m. Singapore time.

Wheat futures extended gains to the highest level since September on the dry weather before reversing direction. The contract for September delivery advanced as much as 1.9 percent to $7.5525 a bushel, extending yesterday’s 7.8 percent surge, before declining 0.3 percent to $7.385.

Soybeans for November delivery dropped 0.2 percent to $14.2325 a bushel in Chicago. December-delivery soybean oil lost 0.4 percent to 51.95 cents a pound.

Rubber fell, after climbing by the most in a week yesterday, on concern that a meeting of European leaders this week will fail to halt the region’s debt crisis that threatens to hurt global growth and demand for commodities.

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

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


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