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Oil Tops $110 on Saudi Pipeline Report: Commodities at Close

The Standard & Poor’s GSCI Spot Index of 24 raw materials rose 1.4 percent to settle at 713.18 at 3:48 p.m. New York time, led by a surge in crude oil.

The UBS Bloomberg CMCI index of 26 prices increased 0.6 percent to 1,656.19.

CRUDE OIL

Crude oil topped $110 a barrel after a report of an explosion on a pipeline in Saudi Arabia.

The report of the blast, which appeared on English-language websites from the Middle East, explained the rise in oil after 2:30 p.m., said John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy.

On the New York Mercantile Exchange, crude oil for April delivery climbed 1.7 percent to $108.84 a barrel. The price reached $110.55 in electronic trading after the settlement.

Brent oil for April settlement climbed 2.9 percent to $126.10 a barrel on the London-based ICE Futures Europe exchange.

Vitol Group sought to buy North Sea Forties crude without success even after raising its bid to the highest price in almost five months. OAO Lukoil sold Russian Urals blend in northwest Europe at a lower price.

Bharat Petroleum Corp., India’s second-largest state refiner, bought 2 million barrels of Nigerian crude for loading in April from Morgan Stanley via a tender, said four traders who declined to be identified because they aren’t authorized to speak with the media.

OIL PRODUCTS

Gasoline rose to a nine-month high as oil surged after the U.S. escalated warnings to Iran about its nuclear program.

On the Nymex, gasoline futures for April delivery rose 2.9 percent to $3.3517 a gallon, the highest settlement since May 10.

Heating-oil futures for April delivery gained 2.7 percent to $3.2753 a gallon.

PRECIOUS METALS

Gold rebounded from the biggest decline of the year, tracking gains in metals and energy, after economic reports signaled improving prospects for the U.S.

On the Comex in New York, gold futures for April delivery advanced 0.6 percent to $1,722.20 an ounce.

Silver futures for May delivery rose 2.9 percent to $35.661 an ounce.

On the Nymex, platinum futures for April delivery climbed 0.5 percent to $1,701.10 an ounce. Palladium futures for June delivery increased 1.2 percent to $716.75 an ounce.

BASE METALS

Copper rose, rebounding from the biggest drop in more than a week, as stronger growth in Chinese manufacturing bolstered the outlook for demand.

On the Comex, copper futures for May delivery advanced 1.3 percent to $3.9315 a pound. Prices slid 1.1 percent yesterday, the most since Feb. 17.

On the London Metal Exchange, copper for delivery in three months rose 1.5 percent to $8,629 a ton ($3.91 a pound).

Zinc fell in London, while aluminum, lead, nickel and tin advanced.

GRAINS, OILSEEDS

Soybeans rose, capping the longest rally since July, as drought cut South American yields, bolstering prospects for U.S. exports.

On the Chicago Board of Trade, soybean futures for May delivery rose 0.2 percent to $13.225 a bushel. The price climbed for the ninth straight session, the longest rally since mid- July.

Corn futures for May delivery fell 0.6 percent to $6.54 a bushel, the first drop in seven sessions. Yesterday, the grain reached $6.615, the highest since Jan. 9.

Wheat futures for May delivery fell 0.6 percent to $6.64 a bushel, the biggest drop for a most-active contract since Feb. 23. The grain has declined 18 percent in the past 12 months.

LIVESTOCK

Hog futures rebounded on speculation U.S. shoppers will buy more pork as an alternative to costlier beef.

On the Chicago Mercantile Exchange, hog futures for April settlement rose 0.9 percent to 90.2 cents a pound.

Cattle futures for April delivery rose 0.9 percent to $1.3095 a pound.

Feeder-cattle futures for March settlement climbed 0.9 percent to $1.58575 a pound. In electronic trading after the close, the price rose to a record $1.5925.

NATURAL GAS

Natural gas tumbled as a government report showed a decline in inventories that was smaller than forecast.

On the Nymex, gas futures for April delivery plunged 5.9 percent to $2.463 per million British thermal units.

U.K. summer gas declined for the third straight day, the longest slump since January, as mild weather suppressed demand and increased flows from liquefied-fuel terminals boosted supply.

The summer contract, for the six months from April, was 1.8 pence lower trading at 58.2 pence a therm at 4:30 p.m. in London, according to broker data compiled by Bloomberg. That’s equal to $9.29 per million Btu. A therm is 100,000 Btu.

SOFT COMMODITIES

Sugar fell to a one-week low on signs of ample supplies from Brazil, the world’s largest producer.

On ICE Futures in New York, raw sugar for May delivery declined 0.6 percent to 24.85 cents a pound. Earlier, the price touched 24.45 cents, the lowest since Feb. 23.

Cocoa futures for May delivery climbed 1.4 percent to $2,366 a ton.

Arabica-coffee futures for May delivery dropped 0.4 percent to $2.041 a pound.

Cotton futures for May delivery declined 0.9 percent to 89.67 cents a pound.

Orange-juice futures for May delivery climbed 1.1 percent to $1.8775 a pound, the third consecutive increase.

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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