Oil, Natural Gas Rise; Silver Prices Fall: Commodities at Close

The Standard & Poor’s GSCI gauge of 24 commodities fell 0.3 percent to 591.2 at 5:02 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials fell 0.2 percent to 1,435.778.

CRUDE OIL

Oil traded near the highest price in four days in New York as policy makers in the U.S. and Europe indicated they may take steps to boost their economies and Iran signaled it will take a hard line in nuclear talks.

Futures were little changed after rising as much as 0.9 percent. Federal Reserve Vice Chairman Janet Yellen said the U.S. remains vulnerable to setbacks that may warrant additional monetary stimulus, while European Central Bank President Mario Draghi said officials are ready to act as the euro area’s outlook worsens. Oil may rebound on policy measures, according to Goldman Sachs Group Inc. Iran pulled back from an agreement on nuclear inspections before talks this month.

Oil for July delivery was at $84.80 a barrel, down 24 cents, in electronic trading on the New York Mercantile Exchange at 8:50 a.m. London time. The contract yesterday rose 73 cents to $85.02, the highest close since May 31. Prices are 14 percent lower this year.

NATURAL GAS

Natural gas futures rose after yesterday’s decline on speculation hot weather forecast for the eastern U.S. next week would be followed by below-normal temperatures, crimping fuel demand from electricity generators to run air conditioners.

OIL PRODUCTS

Singapore gasoil swaps for July rose $1.33, or 1.2 percent, to $113.60 a barrel. The premium of gasoil to Dubai crude fell 10 cents, or 0.6 percent, to $15.82 a barrel. Jet fuel traded at a premium of 75 cents a barrel to gasoil. This spread, also known as the regrade, has narrowed 38 percent from May 31, signaling it is less profitable to make aviation fuel compared with a week earlier.

Naphtha swaps for July rose $11, or 1.4 percent, to $801.25 a ton, PVM data showed. Prices are at the highest since May 31. Japan naphtha’s premium to London-traded Brent crude futures jumped $9.72 to $41.75 a ton, according to data compiled by Bloomberg.

Singapore fuel oil’s discount to Dubai crude, a measure of refining losses from the fuel, shrank 42 cents to $1.56 a barrel at 11:10 a.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker.

PRECIOUS METALS

Gold gained on speculation Federal Reserve Chairman Ben S. Bernanke will signal that more stimulus is needed, weakening the dollar and increasing demand for alternative investments.

Immediate-delivery gold rose as much as 0.4 percent to $1,626.25 an ounce before trading at $1,621.73 by 2:18 p.m. in Singapore. August-delivery bullion fell for the first day in three on the Comex in New York, dropping as much as 0.9 percent to $1,618.80 an ounce.

It was last at $1,623, after reaching a one-month high of $1,642.40 yesterday. Holdings in the SPDR Gold Trust, the biggest exchange-traded product backed by bullion, increased to 1,274.79 metric tons yesterday, the largest amount since May 21, the company’s website showed.

BASE METALS

Copper gained for a second day as industrial metals advanced on speculation policy makers will take steps to revive the slowing global economy.

Three-month copper climbed as much as 0.9 percent to $7,473.50 a metric ton on the London Metal Exchange, before trading at $7,442.25 at 1:01 p.m. Shanghai time. The contract gained as much as 1.6 percent yesterday, the most since May 21.

GRAINS, SOFT COMMODITIES

Corn for July delivery was little changed at $5.865 a bushel, after climbing as much as 0.7 percent. Futures jumped 3.3 percent yesterday. Wheat for July fell 0.4 percent to $6.215 a bushel after gaining 1.8 percent yesterday.

U.S. corn, soybean and wheat inventories before this year’s harvests may be less than the government forecast last month as smaller world crops boost demand for American supplies, according to a Bloomberg survey. The USDA is scheduled to update its estimates on June 12 at 8:30 a.m. in Washington.

Soybeans advanced for a fourth-day, the longest winning streak since April, as U.S. exporters sold more oilseeds to China and on signs policy makers around the world may take steps to revive the slowing economy.

November-delivery soybeans gained as much as 0.8 percent to $13.095 a bushel on the Chicago Board of Trade and were at $13.0525 at 3:53 p.m. Singapore time. The most-active contract is heading for a 3.8 percent gain this week.

Rubber rebounded from the lowest level since November 2009 on optimism that demand may increase as global policy makers take steps to boost economic growth.

The November-delivery contract gained as much as 4.2 percent, the biggest climb since Jan. 17, to 251 yen a kilogram ($3,165 a metric ton) before settling at 243.4 yen on the Tokyo Commodity Exchange. Futures have tumbled 7.6 percent this year.

To contact the reporter on this story: Sharon Chen in Singapore at schen462@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net

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