Oil fell to an eight-month low in New York on skepticism that Spain’s bailout plan will succeed in easing the euro region’s debt crisis, which is slowing economic growth and curbing fuel use.
Futures dropped 1.7 percent as equities and the euro declined in the first trading day after the bailout. Spain asked euro-region governments over the weekend for as much as 100 billion euros ($126 billion) to help shore up its banking system. Saudi Arabian Oil Minister Ali al-Naimi said OPEC needs a higher output target in an interview with the Gulf Oil Review.
Crude oil for July delivery declined $1.40 to $82.70 a barrel on the New York Mercantile Exchange, the lowest settlement since Oct. 6. Prices have fallen 17 percent this year.
Natural gas futures declined in New York to the lowest level in six weeks on forecasts for cooler weather that may reduce power-plant demand for the fuel.
Natural gas for July delivery fell 8.1 cents to settle at $2.218 per million British thermal units on the Nymex, the lowest settlement since April 27. Gas climbed 6 percent in May and has declined 8.4 percent so far this month. The futures dropped to a 10-year intraday low of $1.902 per million Btu on April 19.
Gasoline slid to a five-month low on concern that Spain’s request for a bailout won’t forestall a spread of the European debt crisis, threatening the global economic recovery and fuel demand.
Gasoline for July delivery fell 2.86 cents to $2.6566 a gallon on the New York Mercantile Exchange, the lowest settlement since Dec. 28. Prices are down 1.1 percent this year after being up as much as 27 percent through March 26.
July-delivery heating oil fell 3.64 cents, or 1.4 percent, to settle at $2.6357 a gallon on the exchange.
Gold futures rose for the second straight session on renewed concern that the European debt crisis will spur demand for the metal as a haven.
Gold futures for August delivery gained 0.3 percent to settle at $1,596.80 an ounce on the Comex in New York.
Silver futures for July delivery advanced 0.5 percent to $28.616 an ounce.
Platinum futures for July delivery gained 1.7 percent to $1,449.30 an ounce. Palladium futures for September delivery rose 2.1 percent to $625.15 an ounce.
Copper futures rose for the first time in three sessions as imports increased in China, the world’s biggest consumer of industrial metals.
Copper futures for July delivery advanced 1.8 percent to settle at $3.343 a pound on the Comex in New York. The metal has fallen 13 percent this quarter on concern that easing growth in China and faltering economies in Europe will pinch demand.
Corn futures capped their biggest drop this month and soybeans fell for a second straight session on speculation that Europe’s escalating debt crisis will curb investment demand for commodities.
Corn for July delivery dropped 1 percent to close at $5.92 a bushel on the Chicago Board of Trade, the biggest decline since May 29. The contract for December delivery, after the harvest, fell 1.8 percent to $5.34.
Soybean futures for November delivery, the contract with the highest open interest, slid 0.1 percent to settle at $13.3125 a bushel on the CBOT. The July contract declined 0.1 percent to $14.2475.
Wheat futures for July delivery rose 0.25 cent to $6.305 a bushel on the CBOT on speculation that the U.S. Department of Agriculture will cut its global stockpiles estimate because of dry weather in the U.S. and Russia.
Sugar futures rose to a three-week high as rains delayed harvesting and shipments in Brazil, the world’s largest producer and exporter. Cocoa and coffee dropped.
Raw sugar for July delivery rose 2.5 percent to settle at 20.47 cents a pound on ICE Futures U.S. in New York.
Cocoa futures for September delivery declined 0.3 percent to $2,178 a ton.
Arabica-coffee futures for September delivery fell 0.4 percent to $1.567 a pound.
In futures trading on London’s NYSE Liffe, refined sugar advanced, while cocoa and robusta coffee fell.
Cotton futures for December delivery declined 0.8 percent to settle at 69.29 cents a pound on ICE Futures U.S. in New York. The fiber has slumped 25 percent this year.
Orange-juice futures for July delivery fell 0.5 percent to $1.1305 a pound, the third straight drop.
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