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Copper, Natural Gas Climbs; Gold Rebounds: Commodities at Close

The Standard & Poor’s GSCI gauge of 24 commodities fell 0.5 percent to 578.56 at 4:23 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials dropped 0.1 percent to 1431.572.

CRUDE OIL

Oil fell a second day in New York as rising bad loans in Spain fueled speculation that Europe’s debt crisis will spread and threaten global economic growth.

Oil for July delivery, which expires tomorrow, fell as much as 51 cents to $82.76 a barrel in electronic trading on the New York Mercantile Exchange. It was at $82.88 at 3:01 p.m. Singapore time. It slipped 0.9 percent yesterday to $83.27, the lowest close since June 13. The more-actively traded August contract slid 35 cents to $83.25 a barrel today. Front-month prices are 16 percent lower this year.

NATURAL GAS

Natural-gas futures rose from the highest close in more than three weeks on speculation that hotter-than-normal weather will boost demand from power plants to run air conditioners.

OIL PRODUCTS

High-sulfur fuel oil fell 29 cents to a premium of 42 cents a barrel to Asian marker Dubai crude at 11:15 a.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. The gap narrowed for a second day.

Fuel-oil swaps for July dropped $10, or 1.6 percent, to $600 a metric ton, PVM said. That’s the biggest decline since June 4. The premium of 180-centistoke fuel oil to the 380- centistoke grade, or the viscosity spread, was unchanged after decreasing to $10.50. This means bunker, or marine fuel, moved in tandem with fuel oil used in power stations.

Naphtha swaps for July were down $11.75, or 1.5 percent, at $757.75 a ton, according to PVM. The petrochemical and gasoline feedstock slid for the first time in four days.

Naphtha’s premium to London-traded Brent crude futures lost $12.50 to $33.36 a ton, according to data compiled by Bloomberg. This crack spread, a measure of processing profit, narrowed for the first time in four days.

Gasoline’s premium to naphtha yesterday slumped to $18.83 a barrel, the lowest since April 26, data compiled by Bloomberg showed. A narrowing reforming margin indicates it is less profitable to make motor fuel.

The premium of gasoil, or diesel, to Dubai crude rose 3 cents to $15.93 a barrel, according to PVM. The difference, also known as the crack spread, ended a two-day losing streak.

PRECIOUS METALS

Gold climbed for an eighth day in the longest rally since July as concern over Europe and speculation the Federal Reserve will act to spur growth boosted demand for a store of value. Futures in India surged to a record.

August-delivery bullion rebounded, climbing as much as 0.3 percent to $1,631.90 an ounce on the Comex in New York. It was last at $1,630.80, after snapping yesterday the longest rally since August. German Chancellor Angela Merkel said Greece, which concluded its second election in six weeks with a win by pro- bailout parties, should not be granted leeway on bailout terms.

BASE METALS

Copper gained on speculation that a recovery in the Chinese economy and more measures by the U.S. Federal Reserve to boost growth will stoke demand for commodities. Zinc and nickel also advanced.

Three-month copper rose as much as 0.5 percent to $7,544 a metric ton on the London Metal Exchange, before trading at $7,530 at 11:27 a.m. Shanghai time. The September-delivery contract on the Comex gained 0.2 percent to $3.4085 a pound.

GRAINS, OILSEEDS, SOFT COMMODITIES

Rubber fell, snapping a four-day winning streak, after borrowing costs in Spain climbed to a euro-area record, fueling concern the debt crisis is deepening.

The November-delivery contract dropped as much as 1.6 percent to 251.5 yen a kilogram ($3,184 a metric ton) before trading at 253.1 yen on the Tokyo Commodity Exchange at 11:50 a.m. The most-active contract has lost 22 percent this quarter, the worst since the global financial crisis in 2008.

Corn was poised for its biggest two-day increase since the start of April as U.S. crop conditions deteriorated because of hot, dry weather in Iowa and Illinois, the biggest producers.

Corn for December delivery rose as much as 1.6 percent to $5.4275 a bushel on the Chicago Board of Trade, the highest level since June 11, and traded at $5.40 by 2:08 p.m. in Singapore. Prices have climbed 6.7 percent in two days, the most since April 2.

Palm oil climbed for a second day on concern that dry weather in the main soybean growing regions in the U.S. may damage the oilseed crop, lowering global supplies and boosting demand for the tropical vegetable oil.

The September-delivery contract advanced as much as 1.5 percent to 2,943 ringgit ($932) a metric ton on the Malaysia Derivatives Exchange and ended the morning session at 2,940 ringgit in Kuala Lumpur.

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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