Oil fell from a seven-week high in New York on concern that fuel demand may falter after China signaled risks to its economy and as analysts cut profit forecasts for European companies at the fastest rate since 2009. Futures slid as much as 0.7 percent after advancing a fifth day yesterday, the longest run of gains since April.
Oil for August delivery dropped as much as 63 cents to $88.59 a barrel in electronic trading on the New York Mercantile Exchange and was at $89.11 at 9:32 a.m. London time. The contract gained 0.9 percent yesterday to $89.22, the highest close since May 29. Prices are down 10 percent this year.
Natural gas futures dropped for a third day in New York as forecasts for moderating late-July heat will limit demand for the power-plant fuel.
The premium of gasoil, or diesel, to Asian marker Dubai crude rose 19 cents to $17.17 a barrel at 12:15 p.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. This crack spread, a measure of processing profit, widened for a third day.
Naphtha swaps for August increased 75 cents to $860.25 a metric ton, according to PVM. The petrochemical and gasoline feedstock gained for a fourth day.
Gold is set to fall for a third day in London after Federal Reserve Chairman Ben S. Bernanke provided no specific plans for debt purchases while saying the central bank is prepared to act if labor markets don’t improve.
Bullion for immediate delivery was little changed at $1,582.93 an ounce by 9:19 a.m. in London. Prices are up 1.2 percent this year. August-delivery futures fell 0.4 percent to $1,582.70 on the Comex in New York.
Copper rose after Federal Reserve Chairman Ben S. Bernanke said yesterday U.S. policy makers were prepared to act to boost growth if the labor market doesn’t improve.
Copper for three-month delivery advanced 1.2 percent to $7,684.75 a metric ton on the London Metal Exchange by 9:01 a.m. Copper for September delivery rose 0.4 percent to $3.4675 a pound on the Comex in New York.
GRAINS, OILSEEDS, SOFT COMMODITIES
Corn may rally to a record $8.50 a bushel as the worst U.S. drought in decades cuts production in the world’s biggest exporter, driving global stockpiles lower, according to broker Newedge USA LLC.
Corn for December delivery fell 1.1 percent to $7.63 on the Chicago Board of Trade at 4:50 p.m. in Singapore. Since reaching the year’s low in June, the grain has rallied 51 percent. November-delivery soybeans, which lost 0.2 percent to $15.8725 a bushel, reached $16.07 yesterday, the highest price since 2008.
Rubber declined to the lowest level in more than two weeks after China’s Premier Wen Jiabao signaled more economic weakness, raising concern that demand will slow from the biggest user of the commodity used to make tires.
The December-delivery contract fell 2.8 percent to end at 243.5 yen a kilogram ($3,110 a metric ton), the lowest settlement level since June 29, on the Tokyo Commodity Exchange. The most-active contract has lost 7.6 percent this year.
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