Bloomberg News

Oil Drops as Norway Oil Outage Is Averted: Commodities at Close

July 10, 2012

The Standard & Poor’s GSCI gauge of 24 commodities fell 0.7 percent to 611.51 at 4:59 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials slid 0.5 percent to 1515.35.

CRUDE OIL

Oil dropped for a third time in four days after Norway ended an energy strike that threatened to halt production by western Europe’s largest crude exporter, while China reduced purchases of the commodity.

West Texas Intermediate crude for August delivery fell as much as $1.37 to $84.62 a barrel in electronic trading on the New York Mercantile Exchange and was at $84.88 at 8:50 a.m. London time. The contract climbed 1.8 percent yesterday to $85.99, the highest close since July 5. Prices are 14 percent lower this year.

NATURAL GAS

OIL PRODUCTS

The premium of gasoil, or diesel, to Asian marker Dubai crude increased 28 cents to $17.45 a barrel at 11 a.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. This crack spread, a measure of processing profit, was the widest in six days.

Naphtha’s premium to London-traded Brent crude futures advanced $11.31 to $65.50 a ton, according to data compiled by Bloomberg. The difference is also known as the crack spread.

PRECIOUS METALS

Spot gold declined 0.2 percent to $1,585.20 an ounce at 2:38 p.m. in Singapore, after rising yesterday for the first day in four.

BASE METALS

Copper fell in London after imports slumped in China, the largest buyer of industrial metals.

Three-month copper lost as much as 0.3 percent to $7,535 a metric ton on the London Metal Exchange and traded at $7,558 at 1:46 p.m. Shanghai time. The contract rose 0.3 percent earlier. Futures for September delivery lost 0.1 percent to $3.4270 a pound on the Comex in New York.

GRAINS, OILSEEDS, SOFT COMMODITIES

Corn for December delivery lost as much as 2.4 percent to $7.125 a bushel on the Chicago Board of Trade after yesterday jumping 40 cents, the most allowed, to the highest price since Sept. 13. Futures traded at $7.21 at 12:54 p.m. in Singapore, after advancing 44 percent since June 15 through yesterday.

December-delivery wheat traded at $8.33 a bushel after losing 1.3 percent. The September delivery contract, the most active, dropped as much as 2.1 percent to $8.105 before trading at $8.18. Most-active futures yesterday rose to $8.4475, the highest price since April 2011.

Soybeans for November delivery fell as much as 1 percent to $15.3175 a bushel after yesterday advancing to $15.7125, the highest price for the most-active contract since July 2008. Futures last traded at $15.4075.

Rubber futures declined 0.3 percent on the Tokyo Commodity Exchange, reversing an earlier gain. The most-active contract fell to 248.4 yen a kilogram, after rising as much as 1.2 percent.

Palm oil declined as forecasts for rains in U.S. soybean areas may ease drought-induced stress on crops, reducing concern over lower global oilseed supplies.

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


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