Bloomberg News

Crude Oil Advances on Global Stimulus Bets: Commodities at Close

July 03, 2012

The Standard & Poor’s GSCI gauge of 24 raw materials rose 3.4 percent to settle at 618 at 3:51 p.m. in New York, led by energy.

The UBS Bloomberg CMCI index of 26 prices advanced 2.7 percent to 1,523.98.

CRUDE OIL

Oil surged to a one-month high on speculation that central banks from Europe to China will ease monetary policy to spur growth while sanctions against Iran curb supply.

The European Central Bank is forecast to cut interest rates this week. A state-owned newspaper in China said the time is right to increase liquidity in the banking sector. Iran fired several missiles during a military exercise as it threatened to block tanker traffic in the Strait of Hormuz.

Oil futures for August delivery climbed 4.7 percent to $87.66 a barrel on the New York Mercantile Exchange.

Brent oil for August settlement gained 3.1 percent to $100.40 a barrel on the London-based ICE Futures Europe exchange.

Vitol Group sold a cargo of North Sea Forties at the highest price in almost one month. No bids or offers were made for Russian Urals crude for a third session.

Nigerian benchmark Qua Iboe crude’s premium to Dated Brent fell to a new 20-month low.

OIL PRODUCTS

Gasoline surged on speculation that central banks will ease monetary policy and that sanctions against Iran will limit oil supplies.

On the Nymex, gasoline futures for August delivery rose 3.8 percent to $2.7229 a gallon.

Heating-oil futures for August delivery climbed 3.1 percent to $2.7585 a gallon.

GRAINS, OILSEEDS

Corn jumped to a nine-month high and soybeans rose as a crop-damaging drought in the U.S. Midwest showed no signs of abating. Wheat prices reached a 10-month high.

On the Chicago Board of Trade, corn futures for December delivery gained 2.9 percent to $6.745 a bushel, after touching $6.76, the highest for a most-active contract since Sept. 22.

Soybean futures for November delivery advanced 2.6 percent to $14.7475 a bushel.

Wheat futures for September delivery rose 3.5 percent to $7.9925 a bushel. Earlier, the price touched $8.0075, the highest since Aug. 29.

BASE METALS

Copper rose to a seven-week high, leading a rally in industrial metals, on expectations that central banks will move to stoke economic growth.

On the Comex in New York, copper future for September delivery advanced 2 percent to $3.54 a pound, after touching $3.5565, the highest since May 15.

On the London Metal Exchange, copper for delivery in three months increased 2.5 percent to $7,819 a ton ($3.55 a pound).

In London, aluminum jumped 3.8 percent to $1,982 a ton, the biggest gain since Nov. 30. Nickel rose 3.2 percent, and tin climbed 1.9 percent. Zinc and lead also advanced.

PRECIOUS METALS

Gold climbed to a two-week high amid speculation that central banks will take action to spur growth, boosting demand for the metal as an inflation hedge.

On the Comex, gold futures for August delivery rose 1.5 percent to $1,621.80 an ounce, after climbing to $1,625.70, the highest since June 19.

Silver futures for September delivery gained 2.8 percent to $28.28 an ounce.

On the Nymex, platinum futures for October delivery advanced 2.3 percent to $1,491.40 an ounce. Palladium futures for September delivery jumped 3.6 percent to $598.90 an ounce.

NATURAL GAS

Natural gas climbed as hot weather spurred demand for the power-plant fuel.

On the Nymex, gas futures for August delivery rose 2.7 percent to $2.899 per million British thermal units, the highest settlement since Jan. 10.

U.K. gas for tomorrow rose as imports from the Netherlands halted, tightening supply in the network. Next-season gas gained as oil surged.

Gas for tomorrow gained 0.9 pence, or 1.6 percent, to 57.5 pence a therm at 4:26 p.m. London time. Next-winter gas advanced 1.9 percent to 65.9 pence a therm. That’s equivalent to $10.34 per million Btu. A therm is 100,000 Btu.

SOFT COMMODITIES

Raw-sugar futures rose to the highest in more than two months on speculation that supplies will remain limited from Brazil, the world’s top producer.

On ICE Futures U.S. in New York, raw sugar for October delivery advanced 2.7 percent to 21.98 cents a pound. Earlier, the price reached 22.05 cents, the highest since April 25.

Cocoa futures for September delivery surged 2.6 percent to $2,350 a ton.

Orange-Juice futures for September delivery increased 2.9 percent to $1.2075 a pound.

Arabica-coffee futures for September delivery jumped 3.4 percent to $1.8045 a pound.

Cotton futures for December delivery rose 0.8 percent to 72.6 cents a pound.

LIVESTOCK

Hog prices dropped for the first time in a week on speculation that shutdowns by U.S. meatpackers for the Independence Day holiday will reduce demand for animals.

On the Chicago Mercantile Exchange, hog futures for August settlement slid 0.1 percent to 94.875 cents a pound.

Cattle futures for August delivery climbed 0.2 percent to $1.19475 a pound.

Feeder-cattle futures for August settlement slipped 1.5 percent to $1.474 a pound.

To contact the reporter on this story: Thomas Galatola in New York at tgalatola@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net


We Almost Lost the Nasdaq
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus