Bloomberg News

Crude Rebounds; Copper, Gold Prices Climb: Commodities at Close

December 05, 2012

The Standard & Poor’s GSCI gauge of 24 commodities climbed 0.4 percent to 647.28 at 5:07 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials gained 0.4 percent to 1,593.415.

CRUDE OIL

Oil rebounded from the lowest level in three days in New York after China’s leadership signaled it’s ready to boost stimulus if economic growth falters in the world’s second- biggest crude-consuming nation.

Crude for January delivery climbed as much as 55 cents to $89.05 a barrel in electronic trading on the New York Mercantile Exchange and was at $89.03 at 4:11 p.m. Singapore time. The contract dropped 59 cents yesterday to $88.50, the lowest close since Nov. 29. Prices are down 9.9 percent this year, set for the first annual decline in four years.

OIL PRODUCTS

Asia’s naphtha crack spread shrank, signaling declining profit for refiners. Jet fuel extended losses versus gasoil.

• Light Distillates • Naphtha’s premium to London Brent crude down $13.15 at $90.06/ton at 11:19 a.m. Singapore time, according to data compiled by Bloomberg • Crack spread narrows for the fifth time in six days • January naphtha swaps down $12.25, or 1.3%, at $918.50/ton, according to PVM Oil Associates Ltd. • Gasoline reforming margin yesterday fell $1.06 to close at $13.60/bbl, lowest since Nov. 14, data compiled by Bloomberg show

• Middle Distillates • Gasoil’s premium to Dubai crude down 39 cents at $20.10/bbl at 10:41 a.m. Singapore time, according to PVM • Crack spread narrows for a second day • January gasoil swaps down $1.40, or 1.1%, at $125.70/bbl • Jet fuel down 5 cents at $1.10/bbl below gasoil, lowest regrade since June 2008

• Fuel Oil • High-sulfur fuel oil’s discount to Dubai crude narrows 50 cents to $8.47/bbl at 10:41 a.m. Singapore time, according to PVM • Crack spread gains for third day • January HSFO swaps down $3.25, or 0.5%, at $616.75/ton • Viscosity spread unchanged after rising to $11.50/ton

BASE METALS

Copper climbed to the highest level in more than six weeks on expectations that demand will increase in China amid signs of further reforms from the biggest user of commodities. Zinc and lead also gained.

Metal for delivery in three months on the London Metal Exchange rose as much as 0.5 percent to $8,074.75 a metric ton, the highest since Oct. 19, and traded at $8,053 at 2:19 p.m. in Shanghai. The contract was set to advance for a fifth day.

PRECIOUS METALS

Gold rallied from a one-month low as investors raised holdings to a record and South Korea added to reserves, overshadowing concern that U.S. lawmakers will struggle to reach a budget agreement before the year-end.

Spot gold advanced as much as 0.5 percent to $1,706.30 an ounce and traded at $1,705.01 at 3:12 p.m. in Singapore. The metal dropped to $1,691.40 yesterday, the lowest price since Nov. 6. Bullion for February delivery rose 0.7 percent to $1,707 an ounce on the Comex in New York.

Cash silver advanced as much as 0.8 percent to $33.18 an ounce and was at $33.1575. It dropped to $32.695 yesterday, the lowest level since Nov. 19.

GRAINS, OILSEEDS, SOFT COMMODITIES

Soybeans climbed to the highest price in more than three weeks on concern rain forecast for Argentina will delay planting and on speculation Brazil, set to overtake the U.S. as the largest exporter, may face shipping delays.

Soybeans for January delivery gained as much as 0.6 percent to $14.6475 a bushel on the Chicago Board of Trade, the costliest for the most-active contract since Nov. 9, and were at $14.6375 at 1:39 p.m. in Singapore. Prices dropped 7.1 percent in November, helping trim the year’s gain to 21 percent.

Corn for March delivery was little changed $7.5225 a bushel after swinging between gains and losses. Wheat for March delivery slipped 0.3 percent to $8.5375 a bushel. Prices touched $8.515 yesterday, the lowest since Nov. 19.

Palm oil advanced on speculation that a six-day losing streak, the longest since November 2011, and a widening discount to soybean oil will attract buyers.

The contract for February delivery increased as much as 0.5 percent to 2,306 ringgit ($758) a metric ton on the Malaysia Derivatives Exchange, and ended the morning session at 2,301 ringgit in Kuala Lumpur. Futures, which lost 5.7 percent in the last six days, are heading for the worst annual decline since the 2008 financial crisis.

Rubber rose to the highest level in almost seven weeks as Vietnam may join an international producer group to curb shipments, and speculation grew that China’s new leadership will take measures to bolster economic growth.

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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