Bloomberg News

Heating Oil Advances on Hurricane Concern: Commodities at Close

October 26, 2012

The Standard & Poor’s GSCI Spot Index of 24 raw materials rose 0.2 percent to settle at 638.97 at 3:51 p.m. New York time, led by energy.

The UBS Bloomberg CMCI gauge of 26 prices advanced less than 0.1 percent to 1,565.5.

OIL PRODUCTS

Heating oil and gasoline rose for the second straight day on concern that Hurricane Sandy may disrupt U.S. East Coast production and imports, and the U.S. economy expanded more than forecast in the third quarter, signaling higher fuel demand.

Sandy will probably grow into a “Frankenstorm” that may become the worst to hit the Northeast in 100 years if current forecasts are correct. U.S. gross domestic product rose at a 2 percent annual rate after climbing 1.3 percent in the prior quarter, government figures showed.

On the New York Mercantile Exchange, heating-oil futures for November delivery gained 1.2 percent to $3.0978 a gallon.

Gasoline futures for November delivery advanced 0.8 percent to $2.6991 a gallon.

CRUDE OIL

Crude oil climbed on concern that Sandy will disrupt East Coast refinery production.

On the Nymex, oil futures for December delivery rose 0.3 percent to $86.28 a barrel. The price fell 4.8 percent this week.

Brent oil for December settlement increased 1 percent to $109.55 a barrel on the London-based ICE Futures Europe exchange.

Morgan Stanley failed to buy North Sea Forties blend at a higher price. No bids or offers were made for Russian Urals in Europe.

Russia will export 5.62 million metric tons of Urals from the Baltic Sea port of Primorsk, 1.8 million tons from Ust-Luga and 2.79 million tons from Novorossiysk on the Black Sea next month, a final loading program showed, in line with a preliminary schedule released yesterday.

NATURAL GAS

Natural gas fell, capping the first weekly drop since September, as U.S. inventories approached a record high.

On the Nymex, gas futures for November delivery dropped 1 percent to $3.40 per million British thermal units. The price declined 6 percent this week, the first drop since Sept. 21.

U.K. gas for same-day delivery advanced as colder weather pushed demand toward the highest in five months amid a 79 percent decline in deliveries by ship from last year.

The price jumped 4.5 percent to 68.1 pence a therm at 4:25 p.m. London time. Next-month gas rose 2.5 percent to 67.75 pence a therm. That’s equivalent to $10.90 per million Btu.

PRECIOUS METALS

Gold fell for the third straight week, capping the longest slump in 13 months, because of the dollar’s rally and waning inflation concerns.

On the Comex in New York, gold futures for December delivery fell 0.1 percent to $1,711.90 an ounce. The metal dropped 0.7 percent this week.

Silver futures for December fell 0.1 percent to $32.036 an ounce.

On the Nymex, platinum futures for January delivery slumped 1.5 percent to $1,546 an ounce.

Palladium futures for December delivery fell 1.5 percent to $595.40 an ounce.

BASE METALS

Copper fell, capping the longest slide in more than three years, as disappointing U.S. corporate earnings stoked concern that demand for the metal will ebb.

On the Comex, copper futures for December delivery slid less than 1 percent to $3.55 a pound, dropping for a seventh straight session, the longest slump since May 2009.

On the London Metal Exchange, copper for delivery in three months climbed 0.1 percent to $7,820 a ton ($3.55 a pound). Aluminum, zinc, nickel and tin fell, while lead advanced.

SOFT COMMODITIES

Coffee futures tumbled to a seven-week low on concern that the sluggish global economy will erode demand amid ample supplies.

On ICE Futures U.S. in New York, arabica coffee for December delivery slumped 2 percent to $1.5775 a pound. Earlier, the price touched $1.569, the lowest for a most-active contract since Sept. 6.

Raw-sugar futures for March delivery declined 0.9 percent to 19.35 cents a pound.

Cocoa futures for December delivery fell 0.8 percent to $2,383 a ton.

Cotton futures for December delivery slid 0.4 percent to 72.42 cents a pound.

Orange-juice futures for January delivery dropped 0.5 percent to $1.12 a pound.

GRAINS, OILSEEDS

Corn fell, capping the longest slump in two months, on signs of dwindling demand for supplies from the U.S., the world’s biggest producer.

On the Chicago Board of Trade, corn futures for delivery in December declined 0.6 percent to $7.3775 a bushel. The price dropped for the fifth straight day, the longest slump since late August.

Soybean futures for January delivery slid 0.1 percent to $15.6375 a bushel.

Wheat futures for December delivery fell 1 percent to $8.6375 a bushel.

LIVESTOCK

Cattle futures fell to the lowest in almost four weeks on speculation that consumers in the Northeast will hold off on buying beef that may spoil if Sandy spurs electricity disruptions.

On the Chicago Mercantile Exchange, cattle futures for December delivery fell 0.3 percent to $1.2525 a pound. Earlier, the price touched $1.2505, the lowest for a most-active contract since Oct. 1.

Feeder-cattle futures for January settlement declined 0.6 percent to $1.47075 a pound.

Hog futures for December settlement rose 1 percent to 78.9 cents a pound.

To contact the reporter on this story: Thomas Galatola in New York at tgalatola@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net


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