Bloomberg News

Crude Rises; Gold Snaps Four-Day Decline: Commodities at Close

August 03, 2012

The Standard & Poor’s GSCI gauge of 24 commodities rose 0.6 percent to 633.80 at 4:44 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials was climbed 0.4 percent to 1,535.30.

CRUDE OIL

Oil rebounded from the lowest close in almost three weeks in New York amid forecasts that hiring increased in the U.S., the world’s largest consumer of crude.

Crude for September delivery increased as much as $1.05 a barrel to $88.18 a barrel in electronic trading on the New York Mercantile Exchange and was at $88.10 at 9:13 a.m. London time. The contract yesterday fell $1.78 to $87.13, the lowest close since July 13. Prices are 2.3 percent lower this week and down 11 percent this year.

NATURAL GAS

Natural-gas futures fell for a fourth day after tumbling the most in almost three years yesterday as a government report showed that U.S. stockpiles rose more than expected last week.

Gas dropped as much as 0.8 percent to $2.896 per million British thermal units in New York today, extending yesterday’s 7.9 percent decline, the biggest since Sept. 17, 2009. The Energy Department said inventories rose 28 billion cubic feet in the week ended July 27 to 3.217 trillion cubic feet compared with analyst forecasts for a gain of 23 billion.

OIL PRODUCTS

High-sulfur fuel oil rose 27 cents to $1.25 a barrel below Asian marker Dubai crude at 11 a.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. This discount has narrowed 7.5 percent so far this week. Fuel oil swaps for September fell $4, or 0.6 percent, to $635 a metric ton, PVM said. Prices were headed for a second weekly drop.

The premium of gasoil, or diesel, to Dubai crude was at $17.90 a barrel, according to PVM. This crack spread, a measure of refining profit, has widened 1.1 percent this week after narrowing 2.6 percent last week. Gasoil swaps for September decreased $1.15, or 1 percent, to $119.15 a barrel, PVM data showed. Prices were poised for a second weekly loss.

PRECIOUS METALS

Gold snapped a four-day decline, trimming its worst weekly performance in six, before data that could show employers in the U.S. didn’t hire enough workers to lower the jobless rate, boosting the chances of more stimulus.

Spot gold rose 0.2 percent to $1,591.25 an ounce at 2:41 p.m. in Singapore, after dropping 0.3 percent to the lowest level since July 25. Holdings in exchange-traded products expanded for a third day yesterday, climbing to a two-week high of 2,397.222 metric tons, data compiled by Bloomberg showed. takes to preserve the euro.

BASE METALS

Copper climbed for the first time in three days as the lowest price in six weeks stoked demand before data that may show U.S. employers didn’t hire enough workers to lower the jobless rate, boosting chances of fresh stimulus.

Three-month copper rose as much as 0.4 percent to $7,362 a metric ton on the London Metal Exchange and traded at $7,348.50 by 12:32 p.m. in Tokyo. The metal is still down 2.9 percent this week. The September-delivery contract rose 0.7 percent to $3.3145 a pound on the Comex.

GRAINS, OILSEEDS, SOFT COMMODITIES

Corn dropped for a fourth day as pressure increased on the U.S. government to cut the required use of ethanol, which can be made from the grain, freeing more supply for livestock and poultry producers. Soybeans fell.

December-delivery corn declined 0.5 percent to $7.915 a bushel on the Chicago Board of Trade by 2:30 p.m. in Singapore. Futures, which surged to a record $8.2025 on July 31, have lost 0.2 percent this week.

Soybeans for November-delivery slipped 0.8 percent to $16.0425 a bushel in Chicago, paring the weekly gain to 0.2 percent. Futures climbed to a record $16.915 on July 23. Wheat for September delivery lost 0.4 percent to $8.615 a bushel in Chicago, set for a 4.1 percent loss this week.

Palm oil declined after European Central Bank President Mario Draghi didn’t deliver immediate action to stem the region’s debt crisis, prompting concern that a slowing economy may reduce demand for commodities.

The October-delivery contract fell as much as 1.1 percent to 2,913 ringgit ($929) a metric ton on the Malaysia Derivatives Exchange, and ended the morning trading session at 2,923 ringgit. Futures ended at 2,927 ringgit last week.

Rubber declined for a fourth week, falling to the lowest level since November 2009, after the European Central Bank refrained from taking immediate action to tackle the debt crisis, increasing concern about demand.

To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net

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


The Good Business Issue
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus