Bloomberg News

Oil Falls After Hurricane Isaac Hits Land: Commodities at Close

August 29, 2012

The Standard & Poor’s GSCI gauge of 24 commodities fell 0.1 percent to 668.06 by 5:24 p.m. in London. The UBS Bloomberg CMCI index of 26 raw materials was little changed at 1,591.4069.

CRUDE OIL

Oil fell after U.S. crude stockpiles unexpectedly gained and Hurricane Isaac made landfall, reducing the threat to offshore platforms and rigs in the Gulf of Mexico.

Crude oil for October delivery declined $1.40, or 1.5 percent, to $94.93 a barrel on the New York Mercantile Exchange. Oil traded at $95.45 a barrel before release of the inventory report at 10:30 a.m. Futures have fallen 3.9 percent this year.

Brent oil for October settlement fell 28 cents to $112.30 a barrel on the London-based ICE Futures Europe exchange.

Oil markets: NI OILMARKET

OIL PRODUCTS

Gasoline futures fluctuated after a report showed a higher- than-expected jump in oil inventories, indicating refinery rates may remain elevated, and Hurricane Isaac made landfall in Louisiana, forcing plants to shut down.

September-delivery gasoline slipped 0.21 cent to $3.124 a gallon on the New York Mercantile Exchange, after trading between $3.0841 and $3.1362. The more actively traded October contract sank 0.52 cent to $2.9281.

Heating oil for September delivery fell 0.45 cent to $3.1158 a gallon on the exchange.

Regular gasoline at the pump, averaged nationwide, rose 4.8 cents, or 1.3 percent, to $3.804 gallon yesterday, the most since March 3, 2011, AAA data showed. It’s the highest level since April 30.

Oil Products Europe: NI OPEMKT Gasoline: NI GASOLINE Heating oil: NI HEATOIL

NATURAL GAS

U.K. natural gas for within-day delivery pared earlier losses as higher demand and increased imports balanced the delivery network.

Gas for today slid 0.7 percent to 56.6 pence a therm. September gas rallied 0.5 percent to 57.05 pence a therm, reversing a 0.9 percent decline. That’s equivalent to $9.04 per million British thermal units and compares with $2.62 per million Btu of front-month U.S. gas.

U.K. natural gas: NI NUKMKT Gas market: NI GASMARKET Americas natural gas: NI AGASMARKET European natural gas: NI EGASMARKET

SOFT COMMODITIES

Cocoa futures climbed to a nine-month high on concern that below-average rainfall may reduce output in West Africa. Cotton, coffee and orange juice also gained, while sugar fell.

Cocoa for December delivery rose 0.6 percent to $2,583 a metric ton on ICE Futures U.S. in New York. Earlier, the price reached $2,600, the highest for a most-active contract since Nov. 10.

Cotton futures for December delivery increased 0.7 percent to 76.15 cents a pound.

Arabica-coffee futures for December delivery gained 0.2 percent to $1.6835 a pound.

Orange-juice futures for November delivery climbed 2.9 percent to $1.1725 a pound.

Raw-sugar futures for October delivery slid 0.8 percent to 19.97 cents a pound.

Soft commodities markets: NI SOMKTS

BASE METALS

Copper fell for the fourth straight session in New York, heading for the longest slump in 12 weeks, on speculation that the U.S. and China will refrain from new economic stimulus measures, undermining demand prospects.

Copper futures for December delivery slid 0.6 percent to $3.4485 a pound on the Comex in New York, heading for the longest slump since June 5. Earlier, the contract reached $3.428, the lowest since Aug. 21.

Tin plunged the most in five weeks as supply concerns eased after PT Timah, the world’s third-largest producer, said it began immediate-delivery sales, reversing a decision to curb supply after less than a month. Tin for delivery in three months dropped 3.4 percent to $20,001 a ton on the LME.

Zinc and aluminum also declined in London, while nickel rose.

Base metals markets: NI BMMKTS

PRECIOUS METALS

Gold slumped the most in two weeks amid speculation that an expanding U.S. economy will reduce pressure on the Federal Reserve to take additional steps to spur growth, eroding demand for the metal as an inflation hedge.

Gold futures for December delivery slid 0.6 percent to $1,659.60 an ounce on the Comex in New York. A close at this price will make it the biggest loss for a most-active contract since Aug. 14.

Silver futures for December delivery declined 0.7 percent to $30.76 an ounce in New York.

Precious metal markets: NI PCMKTS

LIVESTOCK

Cattle futures rose the most in three weeks on mounting concern that the worst U.S. drought since 1956 is forcing livestock producers to shrink their herds to avoid high feed costs. Hog prices fell.

Cattle futures for October delivery climbed 1 percent to $1.2495 a pound on the Chicago Mercantile Exchange, heading for the biggest gain since Aug. 8. Prices are up 1.9 percent this year through yesterday.

Feeder-cattle futures for October settlement slid 0.1 percent to $1.443 a pound in Chicago.

Hog futures for October settlement fell 0.4 percent to 72.925 cents a pound on the CME. Through yesterday, the price dropped 13 percent this year.

Livestock markets: NI LVMKTS

GRAINS, OILSEEDS

Soybeans and corn rose on speculation that rain in the past two weeks failed to boost crops after the worst drought since 1956 cut yields.

Soybean futures for November delivery rose 0.5 percent to $17.315 a bushel on the Chicago Board of Trade, heading for a second straight gain.

Corn futures for December delivery climbed 0.9 percent to $8.025 a bushel on the CBOT. A close at that price would snap a five-session decline, the longest slide since June 2011.

Grain markets: NI GRMKTS

EUROPEAN CARBON PERMITS

European Union carbon for December declined 3.8 percent to 7.68 euros ($9.63) on the ICE Futures Europe exchange in London.

EU Carbon Emissions: NI ECBMKT

To contact the reporter on this story: Jessica Abrahams in London at jabrahams7@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net


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