Oil rose for a third day in New York after stockpiles declined more than analysts projected and speculation mounted that central banks in the U.S. and China will boost economic stimulus.
Oil for October delivery gained as much as $1.03 to $98.29 a barrel in electronic trading on the New York Mercantile Exchange and was at $98.10 at 2:50 p.m. Singapore time. The contract yesterday climbed 0.4 percent to $97.26, the highest close since May 7. Prices are 0.7 percent lower this year.
Natural gas futures gained for a second day in New York on concern that Tropical Storm Isaac will disrupt production in the Gulf of Mexico.
Prices advanced as much as 1.2 percent after computer models showed Isaac moving toward Florida and the eastern Gulf of Mexico later this week. The Gulf is home to 6.3 percent of U.S. gas output, 29 percent of oil production, and 40 percent of refining capacity, according to the U.S. Energy Department.
The premium of gasoil, or diesel, to Asian marker Dubai crude fell $1.52, or 7.8 percent, to $17.95 a barrel at 10:06 a.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. Today’s decline is the biggest since Sept. 15. Gasoil swaps for September dropped 25 cents, or 0.2 percent, to $130.45 a barrel, PVM data showed.
High-sulfur fuel oil’s discount to Dubai crude narrowed 19 cents to $3.68 a barrel, according to PVM. The spread shrank for the first time in four days, paring refiners’ losses from making the fuel. Fuel-oil swaps for September rose $9.25, or 1.4 percent, to $691 a metric ton, PVM data showed.
Copper climbed to the highest level in more than a month on speculation that central banks in the U.S. and China, the world’s two largest users, may announce more stimulus to revive their economies.
Gold advanced to the highest level in 16 weeks after breaking above the 200-day moving average as the Federal Reserve signaled that it may add stimulus and investment holdings rose to a record. Platinum extended a rally.
Spot gold gained for a seventh day to match a streak in June, rising as much as 0.6 percent to $1,665.31 an ounce, the most expensive since May 2. The metal traded at $1,663.50 at 2:11 p.m. in Singapore. Gold closed at $1,654.65 yesterday, above the 200-day moving average for the first time since March 26, signaling more gains. The average is now at $1,643.15.
Platinum advanced as much as 1.7 percent to $1,561.50 an ounce, the highest level since May 3, and traded at $1,559.75. Prices are up for a sixth day, the best run since the period to Oct. 28, after violence in South Africa, the biggest supplier.
GRAINS, OILSEEDS, SOFT COMMODITIES
Soybeans rallied to a record as U.S. crop-tour data showed further evidence of damage from the worst drought in half a century and speculation increased that the Federal Reserve may add to stimulus, benefiting commodities.
Soybeans for November delivery advanced as much as 1 percent to $17.4475 a bushel on the Chicago Board of Trade, and were at $17.3325 at 2:46 p.m. in Singapore. Futures have surged 44 percent this year. Corn, which reached an all-time high on Aug. 10, climbed as much as 0.5 percent to $8.3875 a bushel.
Corn for December delivery was little changed at $8.355 a bushel in Chicago. The most-active price rallied a record $8.49 a bushel on Aug. 10. Wheat for December delivery dropped 0.3 percent to $9.1475 a bushel.
Rubber climbed on speculation that central banks in the U.S. and China may add stimulus to bolster growth, supporting demand for the commodity used in tires.
The January-delivery contract rose as much as 1.6 percent to 222 yen a kilogram ($2,827 a metric ton) before ending at 220.3 yen on the Tokyo Commodity Exchange. That pared this year’s decline to 16 percent.
Palm oil climbed for a fifth day to the highest in more than five weeks after soybeans rose to a record as a U.S. crop tour showed further evidence of damage and on speculation the Federal Reserve may add to stimulus.
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