Oil fell from a nine-week high in New York, paring a second weekly advance, as worse-than-expected economic data added to signs seasonal crude demand is weakening.
Crude for August delivery, which expires today, slid as much as 97 cents to $91.69 a barrel in electronic trading on the New York Mercantile Exchange and was at $91.72 at 10:22 a.m. London time. It climbed 3.1 percent yesterday to $92.66, the highest close since May 16. The more-actively traded September future decreased 96 cents to $92.01. Front-month prices are 5.3 percent higher this week and down 7.2 percent this year.
Natural gas futures extended gains after closing at the highest price in six months yesterday in New York as the surplus in U.S. stockpiles narrowed.
The premium of gasoil, or diesel, to Asian marker Dubai crude rose 45 cents to $18.11 a barrel at 11:55 a.m. Singapore time, according to data from PVM Oil Associates Ltd. , a broker. This crack spread , measure of processing profit, has widened 10 percent so far this week, the largest percentage gain since the seven days ending Sept. 30. Swaps for August climbed $1.36, or 1.1 percent, to $121.86 a barrel, PVM said. Prices are up 6 percent from last week.
Naphtha swaps for August increased $6.75, or 0.8 percent, to $883.25 a metric ton, according to PVM. The petrochemical and gasoline feedstock is set for a fourth weekly advance.
Naphtha’s premium to London-traded Brent crude futures was up $10.14 at $74.48 a ton, according to data compiled by Bloomberg. This crack spread was headed for a 23 percent weekly rebound after losing 22 percent last week.
High-sulfur fuel oil rose 94 cents to $1.78 a barrel below Dubai crude, according to PVM. The discount was set to narrow for the first week in three, indicating reduced losses for refiners turning crude into residual products.
Gold was set to rise for a second day in London as concern about Europe’s debt crisis spurred demand for a protector of wealth and as physical demand gained.
Bullion for immediate delivery rose 0.2 percent to $1,584.90 an ounce by 9:41 a.m. in London. Prices are down 0.3 percent this week, limiting this year’s gain to 1.4 percent. August-delivery futures climbed 0.2 percent to $1,584.30 on the Comex in New York.
Copper fell in London after China, the world’s biggest consumer of the metal, ordered local governments to maintain curbs on real estate.
GRAINS, OILSEEDS, SOFT COMMODITIES
Corn resumed a rally and soybeans traded near a record as the worst drought since 1956 threatened to cut production in the U.S., the biggest grower of both crops. Wheat fell from the highest price in almost four years.
Corn for December delivery gained 1.3 percent to $7.8825 a bushel on the Chicago Board of Trade, at 2:14 p.m. Singapore time, set for a 6.5 percent gain this week. The grain peaked at $7.99 yesterday, before ending 0.7 percent lower. The record for a most-active contract is $7.9925, reached on June 27, 2008.
Soybeans for November delivery rose as much as 0.9 percent to $16.6675 a bushel, before trading at $16.65. The price peaked at $16.7375 yesterday and is set for a fifth weekly gain, the best run since April.
September-delivery wheat fell as much as 1.2 percent to $9.235 a bushel and traded at $9.34. Futures are set to climb 10 percent this week. The most-active price reached $9.38 yesterday, the most expensive since Aug. 21, 2008.
Crude palm oil futures advanced after a decision by India, the world’s biggest buyer, to raise benchmark prices used to calculate the import tax for refined oil to match market rates for the first time since 2006.
The October-delivery contract rose as much as 0.7 percent to 3,065 ringgit ($972) a metric ton on the Malaysia Derivatives Exchange, and was at 3,051 ringgit at 4:31 p.m. local time. Futures are set to drop 0.5 percent this week.
Rubber declined for a second week after U.S. economic data missed estimates and oil fell, raising concern that demand may slow for the commodity used in tires.
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