Bloomberg News

Crude Falls, Set for Second Weekly Decline: Commodities at Close

October 26, 2012

The Standard & Poor’s GSCI gauge of 24 commodities fell 0.4 percent to 634.72 at 5:57 p.m. Singapore time.

CRUDE OIL

Oil fell, poised for the biggest weekly drop in a month, on speculation U.S. economic growth won’t be enough to boost demand amid increasing stockpiles.

Crude for December delivery fell as much as $1.05 to $85 a barrel in electronic trading on the New York Mercantile Exchange and was at $85.13 at 8:50 a.m. London time. The contract yesterday snapped the longest losing streak in five months, gaining 32 cents to settle at $86.05. Prices are down 5.4 percent this week, the most since the five days ending Sept. 21.

BASE METALS

Copper declined to the lowest level in seven weeks in Shanghai on renewed concern over growth in China, the largest user, amid a slump in equities. Industrial metals from aluminum to lead fell.

PRECIOUS METALS

Gold declined along with commodities, extending losses for a third straight week, after Asian stocks fell as China Unicom (Hong Kong) Ltd. joined Apple Inc. and other companies posting results that missed analysts’ estimates.

Gold for immediate delivery fell as much as 0.7 percent to $1,700.90 an ounce and traded at $1,703.80 at 2:33 p.m. in Singapore. Prices are set to decline 1 percent this week. Bullion for December delivery dropped as much as 0.7 percent to $1,703.80 on the Comex in New York.

GRAINS, OILSEEDS, SOFT COMMODITIES

Rubber declined from a one-week high, paring the first weekly advance in three, as concerns grew that a slowdown in global economies will curb raw-material demand.

Rubber for March delivery dropped 1 percent to settle at 257.7 yen a kilogram ($3,224 a metric ton) on the Tokyo Commodity Exchange. The contract increased 0.9 percent this week.

Soybeans and corn fell as commodities and stocks tumbled on concerns that a slowing global economy will hurt demand. Wheat declined even after the International Grains Council cut its harvest forecast.

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


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