Bloomberg News

Oil, Gold, Copper Extend Losses on Europe: Commodities at Close

June 27, 2012

The Standard & Poor’s GSCI gauge of 24 commodities fell 0.3 percent to 570.67 at 5:40 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials fell 0.2 percent to 1430.058.

CRUDE OIL

Oil fell in New York to trade below $80 a barrel for a fifth day on speculation demand is faltering as U.S. crude stockpiles rise, countering signs that output from Iran and Norway will be disrupted.

Oil for August delivery fell as much as 37 cents to $78.99 a barrel in electronic trading on the New York Mercantile Exchange and was at $79.04 at 3:06 p.m. Singapore time. The contract yesterday rose 15 cents, or 0.2 percent, to $79.36, the highest close since June 22. Prices have fallen 23 percent this quarter, the biggest drop since the final three months of 2008.

NATURAL GAS

Natural gas futures in New York extended their longest streak of gains in more than a month as forecasts for hot weather signaled increased demand.

OIL PRODUCTS

Singapore gasoil swaps for July rose $1.05 to $107.30 a barrel at 10 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 fourth day by 57 cents, or 3.4 percent, to $16.40 today.

Jet fuel traded at a premium of 95 cents a barrel to gasoil. This spread, known as the regrade, was unchanged from yesterday.

Naphtha swaps for July rose for a third day by $23.75, or 3.3 percent, to $746.50 a metric ton, the highest since June 18, PVM data showed. Japan naphtha’s premium to London-traded Brent crude futures rose $24.65 to $46.59 a ton as of 11:22 a.m., 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 15 cents to 91 cents a barrel, PVM data showed.

PRECIOUS METALS

Gold is set to decline for a second day in London on concern Europe’s debt crisis will strengthen the dollar and curb demand for the metal as an alternative investment. Palladium dropped.

Bullion for immediate delivery fell 0.4 percent to $1,565.98 an ounce by 9:25 a.m. in London. Gold has dropped 6.1 percent since the end of March, the worst quarterly performance since the three months to June 2004. August-delivery futures were 0.6 percent lower at $1,566.30 on the Comex in New York.

The metal is up 0.1 percent this year after 11 consecutive annual increases. Holdings in gold-backed exchange-traded products were little changed at 2,409 metric tons yesterday, within 0.1 percent of the all-time high set in March, data compiled by Bloomberg show.

BASE METALS

Copper declined for the first time in three days after data showed U.S. consumer confidence fell this month and Spanish and Italian bond yields jumped, worsening Europe’s debt crisis before a leaders’ summit.

Three-month copper lost as much as 0.6 percent to $7,317.25 a metric ton on the London Metal Exchange, before trading at $7,324 by 2:52 p.m. Shanghai time. Copper has lost 13 percent since March 30, set for the first quarterly fall in three. Comex September futures dropped 0.3 to $3.311 per pound.

GRAINS, OILSEEDS, SOFT COMMODITIES

Palm oil fell on concern that the European leaders may fail to take steps to contain the region’s debt crisis at a summit, weakening demand for commodities.

The September-delivery contract dropped as much as 0.6 percent to 3,013 ringgit ($944) a metric ton on the Malaysia Derivatives Exchange, and ended the morning session at 3,025 ringgit. Prices have lost 12 percent this quarter.

Soybeans for November delivery gained 0.5 percent to $14.20 a bushel in Chicago. December-delivery soybean oil was little changed at 51.84 cents a pound.

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.

Corn fell in Chicago on speculation investors were cashing in gains from a 13 percent, three-day rally as they awaited the effect of predicted rains on crops in the Midwest, the largest U.S. growing region. December-delivery corn fell 0.3 percent to $6.22 a bushel on the Chicago Board of Trade by 10:09 a.m. in London. The grain climbed as high as $6.2475 yesterday.

Wheat for September delivery slid 0.7 percent to $7.4175 a bushel, paring a 10 percent jump over the prior three days. Milling wheat for November delivery traded on NYSE Liffe in Paris fell 0.4 percent to 225 euros ($281) a metric ton.

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.

Rubber ended little changed as concerns that a European Union summit beginning tomorrow will fail to produce a lasting resolution to the region’s debt crisis countered optimism that China will boost its economy.

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

To contact the editor responsible for this story: Christian Schmollinger at christian.s@bloomberg.net


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