Oil Falls Fifth Day; Gold Drops Second Day: Commodities at Close
Oil fell for a fifth day after Saudi Arabia’s oil minister Ali al-Naimi said prices are too high and a survey signaled that inventories rose to the most in more than 21 years in the U.S., the world’s biggest crude consumer.
Crude for June delivery fell as much as 82 cents to $97.12 a barrel in electronic trading on the New York Mercantile Exchange and was at $97.16 at 3:13 p.m. Singapore time. The contract slid 55 cents, or 0.6 percent, to $97.94 yesterday, the lowest close since Feb. 6. Prices are down 1.7 percent this year.
Natural gas futures were little changed after rising 2.5 percent yesterday
The premium of gasoil, or diesel, to Asian marker Dubai crude fell 75 cents, or 4.5 percent, to $16.05 a barrel at 11:30 a.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. This crack spread, a measure of processing profit, narrowed by the largest percentage since March 19. Gasoil swaps for June slid 10 cents to $125.75 a barrel, the lowest so far this year, PVM data showed.
Naphtha swaps for June rebounded $6, or 0.7 percent, to $935.25 a metric ton, according to PVM. The petrochemical feedstock ended the longest losing streak since January 2011. Naphtha’s premium to London-traded Brent crude futures increased $3.44 to $80.14 a ton, according to data compiled by Bloomberg. The difference, also known as the crack spread, widened for the first time in three days.
Gold declined for a second day on concern about the future of Greece’s membership in the euro region, weakening the common currency against the dollar and damping demand for alternative investments.
Spot gold lost as much as 0.5 percent to $1,630.45 an ounce before trading at $1,631.59 at 2:56 p.m. in Singapore, extending yesterday’s 0.2 percent fall. The euro held near a three-month low as Greek leaders struggle to form a new government after voters flocked to anti-austerity parties on May 6, calling into question the country’s ability to impose the measures needed to guarantee its future in the euro.
The metal for delivery in three months gained as much as 1.2 percent to $8,268.75 a metric ton, the biggest gain since April 27, on the London Metal Exchange, before trading at $8,238.50 at 2:02 p.m. Shanghai time. The bourse was closed for a holiday yesterday. August-delivery copper on the Shanghai Futures Exchange rose 0.5 percent to 57,850 yuan ($9,171) a ton.
GRAINS, SOFT COMMODITIES
Wheat gained for a second day on signs that a 23 percent slump in the year through yesterday may have boosted demand for U.S. supplies. Corn and soybeans climbed.
The July-delivery contract rose as much as 0.6 percent to $6.1575 a bushel on the Chicago Board of Trade, and was at $6.1475 at 12:19 p.m. Singapore time. Futures slumped 6.2 percent last week, the most since the five days ended Sept. 23.
Corn for July delivery rose 0.7 percent to $6.24 a bushel, while soybeans for delivery in the same month added 0.2 percent to $14.6875 a bushel.
The July-delivery contract climbed as much as 0.8 percent to 3,388 ringgit ($1,109) a metric ton on the Malaysia Derivatives Exchange, and was at 3,384 ringgit at the close of the morning session in Kuala Lumpur.
May 8 (Bloomberg) -- Rubber fell to the lowest level in more than three months, as crude oil declined and amid concern that demand for the material used for tires will remain weak.
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