Oil Drops Below $100 as Inventories Rise: Commodities at Close

The Standard & Poor’s GSCI gauge of 24 commodities dropped 0.9 percent to 653.96 as of 4:54 p.m. in London. The UBS Bloomberg CMCI index of 26 raw materials declined 1 percent to 1,538.015.

CRUDE OIL

Oil extended losses, falling below $100 a barrel after the U.S. Energy Department reported an unexpected increase in inventories.

OIL PRODUCTS

European gasoline’s premium to Brent crude fell, snapping five days of gains, as forecasts of rising U.S. stockpiles signaled less need for imports from Europe.

Gasoline’s premium to crude, or crack, dropped to 53 cents a barrel from 82 cents yesterday, according to data from PVM Oil Associates Ltd., a London-based broker. The premium started the year at $6.60 a barrel, the data show.

Gasoil for January delivery fell 0.4 percent to $945.50 a ton on ICE Futures Europe.

German power for next year was little changed near its lowest in almost 10 months. The German baseload 2012 electricity contract dropped 0.1 percent to 52.20 euros a megawatt hour.

European Union emissions allowances for December fell as equities pared gains.

EU permits dropped 1 percent to 7.25 euros a ton on ICE Futures Europe.

Gasoline fell after an industry-funded report that stockpiles of the motor fuel rose 5.97 million barrels last week.

NATURAL GAS

U.K. natural gas for delivery in January declined as Norwegian pipeline imports increased amid record storage levels and an absence of freezing weather.

The January contract dropped 0.6 percent to 57.85 pence a therm.

Natural gas futures declined in New York as forecasts for colder-than-normal weather turned warmer, reducing demand for surplus inventories.

PRECIOUS METALS

Palladium rose to a two-month high in New York on speculation rising car sales will boost demand for the metal used in pollution control gear.

Palladium for March delivery gained as much as 2.8 percent to $689.90 an ounce on the New York Mercantile Exchange, the highest price since Sept. 22. Prices have jumped 15 percent this year.

BASE METALS

Copper fell for a second day on growing concern that European leaders will struggle to reach agreement on measures to ease the region’s debt crisis.

Copper for March delivery declined 0.9 percent to $3.5445 a pound on the Comex. Prices have dropped 20 percent this year.

GRAINS, OILSEEDS Wheat futures fell for the second time in three days on speculation that a U.S. government report this week will show global supplies are rising.

Wheat for March delivery declined 1.7 percent to $6.0275 a bushel on the Chicago Board of Trade. Prices are down 24 percent this year.

LIVESTOCK

SOFT COMMODITIES

Arabica coffee retreated for a second day in New York as certified stockpiles monitored by the ICE Futures U.S. exchange continued to rise.

Coffee for March delivery dropped 2.7 percent to $2.2935 a pound on ICE. Robusta coffee dropped 1.2 percent to $1,985 a ton on NYSE Liffe.

Orange-juice futures for January delivery declined 0.2 percent to $1.76 a pound in New York. Prices are up 7.6 percent this year.

Cocoa for March delivery dropped 1.1 percent to $2,145 a ton on ICE, the 10th decline in row.

Raw sugar for March delivery dropped 4.2 percent to 23.16 cents a pound on ICE. The price has dropped 28 percent this year.

To contact the reporter on this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net

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

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