Oil rebounded from the lowest close in more than a week in New York on speculation that declines may have been excessive amid shrinking stockpiles in the U.S., the world’s biggest crude consumer.
Oil for August delivery gained as much as $1.09 to $85.00 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell $2.08 yesterday to $83.91, the lowest close since July 2. Prices are down 14 percent this year.
The premium of gasoil, or diesel, to Asian marker Dubai crude fell 5 cents to $17.65 a barrel at noon Singapore time, according to data from PVM Oil Associates Ltd., a broker. This crack spread, a measure of processing profit, narrowed from the widest in six days.
High-sulfur fuel oil was down 6 cents at $1.81 a barrel below Dubai crude, according to PVM. A bigger discount shows wider losses for refiners turning crude into residual products.
Spot gold advanced as much as 0.7 percent to $1,577.80 an ounce and was at $1,575.85 at 3:01 p.m. in Singapore. The euro was little changed against the dollar after dropping to a two- year low yesterday, sending bullion down by 1.3 percent.
Copper climbed after Chinese Premier Wen Jiabao vowed to maintain growth in the world’s largest base-metals user and data showed that U.S. job openings increased, boosting the demand outlook.
Copper for three-month delivery rose as much as 0.6 percent to $7,537 a metric ton on the London Metal Exchange, and traded at $7,508 at 1:42 p.m. in Shanghai. The contract fell as much as 1 percent yesterday to $7,482, the lowest level since June 29.
GRAINS, OILSEEDS, SOFT COMMODITIES
December-delivery corn increased as much as 1.3 percent to $7.265 a bushel on the Chicago Board of Trade and was at $7.22 at 2:59 p.m. in Singapore. The most-active contract gained to $7.33 a bushel on July 9, the highest level since September, as heat baked U.S. fields.
Soybeans for November delivery declined for a second day, losing 0.2 percent to $15.3625 a bushel, after the most active contract rose on July 9 to $15.7125, the highest level since the global food crisis in 2008. Wheat for September delivery added 0.2 percent to $8.2325 a bushel, after trading at the highest level since April 2011 on July 9.
December-delivery rubber lost 1.3 percent to end at 244.4 yen a kilogram ($3,081 a metric ton) on the Tokyo Commodity Exchange, the lowest settlement level for the most-active contract since June 29. The third fall is the worst run since the period to June 4.
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