Bloomberg News

Oil, Gold, Copper Rise; Palm Oil Increases: Commodities at Close

July 03, 2012

The Standard & Poor’s GSCI gauge of 24 commodities rose 1.3 percent to 606.16 at 5:42 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials rose 1.4 percent to 1505.4683.

CRUDE OIL

Oil rebounded in New York on signs that central banks from Europe to China may ease monetary policy to spur economic growth and speculation sanctions against Iran will curb supply.

Oil for August delivery climbed as much as 88 cents to $84.63 a barrel and was at $84.11 in electronic trading on the New York Mercantile Exchange at 3:28 p.m. in Singapore. The contract slid $1.21 yesterday to $83.75, the lowest close since June 28. Prices are 15 percent lower this year.

NATURAL GAS

Natural gas futures settled unchanged in New York amid speculation that storm-related blackouts in the eastern U.S. and the Fourth of July holiday will reduce demand for the power- plant fuel.

Natural gas for August delivery settled at $2.824 per million British thermal on the New York Mercantile Exchange, matching the close on June 29, when gas rose to the highest price since Jan. 10. The futures are down 5.5 percent this year.

The price discount, or spread, of the August contract to September futures narrowed 0.1 cent to 0.8 cent.

OIL PRODUCTS

The premium of gasoil to Dubai crude fell $2.67, or 16 percent, to $14.21 a barrel, the lowest since Dec. 31, 2010, according to data from PVM Oil Associates Ltd., a broker.

Singapore gasoil swaps for August rose 57 cents, or 0.5 percent, to $108.57 a barrel at 10:10 a.m. Singapore time.

Jet fuel traded at a premium of 80 cents a barrel to gasoil, up 5 cents from June 29. This spread, also known as the regrade, has decreased 20 percent from a week earlier, signaling it is less profitable to make aviation fuel.

Oil in New York fell today as investors sold contracts to profit from the biggest price surge in three years. Futures declined as much as 1.5 percent after surging 9.4 percent on June 29.

Fuel Oil

Singapore fuel oil’s discount to Dubai crude was at $3.77 a metric ton, widening by $3.75 from June 29, PVM data showed. The discount is the biggest since May 16, signaling growing losses from making the fuel.

High-sulfur fuel-oil swaps for August fell $3.25, or 0.6 percent, to $575.25 a ton.

The premium of 180-centistoke fuel oil to the 380- centistoke grade widened 25 cents to $10.75 a ton, meaning bunker fuel prices fell faster than power-station fuel oil today.

Japan naphtha’s premium to London-traded Brent crude futures rose to $54.33 a ton from $18.17 on June 29, according to Bloomberg calculations based on PVM data.

PRECIOUS METALS

Gold climbed to the highest price in almost two weeks in London as speculation central banks will take more action to spur growth boosted demand for the metal.

Bullion for immediate delivery rose as much as 0.9 percent to $1,611.85 an ounce, the highest price since June 20, and was at $1,608.57 an ounce by 9:11 a.m. in London. August-delivery futures were 0.7 percent higher at $1,608.80 on the Comex in New York.

BASE METALS

Copper climbed to a six-week high on expectations that central banks in the U.S., Europe and China will ease monetary policy to shore up growth, boosting demand.

Three-month copper rose as much as 2.5 percent to $7,815 a metric ton, the highest level since May 22, before trading at $7,742.75 by 3:57 p.m. in Tokyo on the London Metal Exchange. September-delivery futures gained 1.5 percent to $3.5200 a pound on the Comex in New York.

GRAINS, OILSEEDS, SOFT COMMODITIES

Corn advanced to the highest level in more than three months after crop conditions in the U.S., the biggest producer and exporter, deteriorated for a fourth straight week on hot, dry weather. Soybeans and wheat gained.

Corn for December delivery surged as much as 2.5 percent to $6.72 a bushel on the Chicago Board of Trade, the highest price for the most-active contract since March 19, and was at $6.6575 at 4:05 p.m. in Singapore. Prices surged 15 percent last week.

Soybeans for November delivery climbed as much as 1.7 percent to $14.63 a bushel, the highest level for the most- active contract since May 8, and were at $14.55.

September-delivery wheat advanced as much as 1.2 percent to $7.8175 a bushel, the highest price for the most-active contract since Sept. 1, and traded at $7.7725.

Rubber advanced for a second day on speculation that central banks may ease monetary policy after manufacturing unexpectedly shrank in the U.S.

The December-delivery contract gained as much as 2.8 percent to 253 yen a kilogram ($3,175 a metric ton), the highest level since June 20, before settling at 251.2 yen on the Tokyo Commodity Exchange. That pared this year’s loss to 4.6 percent.

Palm oil climbed for a third day to the highest level in more than a month on concern that hot, dry weather in the U.S. may have hurt crops, reducing global cooking-oil supplies.

The September-delivery contract rose as much as 1 percent to 3,120 ringgit ($990) a metric ton on the Malaysia Derivatives Exchange, the highest price for the most-active contract since May 30, and was at 3,114 ringgit at 4:22 p.m. in Kuala Lumpur.

Palm oil for January delivery rose 0.6 percent to 8,112 yuan ($1,278) a ton on the Dalian Commodity Exchange. Soybean oil for delivery in the same month climbed 0.9 percent to 9,632 yuan a ton.

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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