Oil Heads for Weekly Drop; Copper Declines: Commodities at Close

The Standard & Poor’s GSCI gauge of 24 commodities dropped 0.04 percent to 673.83 at 6:10 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials rose 0.1 percent to 1,599.0977.

CRUDE OIL

Oil is heading for the first weekly decline in a month amid concern of slowing growth in the U.S. and speculation that European leaders aren’t making progress on resolving the region’s debt crisis.

Oil for October delivery dropped as much as 86 cents to $95.41 a barrel in electronic trading on the New York Mercantile Exchange and was at $95.51 at 8:54 a.m. London time. The contract yesterday fell 1 percent to $96.27, the lowest close since Aug. 20. Prices are down 0.5 percent this week and 3.4 percent this year.

NATURAL GAS

Natural-gas futures gained in New York for the second time in three days on concern that Tropical Storm Isaac may force production cuts in the Gulf of Mexico.

OIL PRODUCTS

The premium of gasoil, or diesel, to Asian marker Dubai crude rose $1.84, or 9.5 percent, to $21.26 a barrel at 10:17 a.m. Singapore time. That’s the most since June 16, 2011, according to data from PVM Oil Associates Ltd., a broker. Gasoil swaps for September dropped 5 cents, or 0.04 percent, to $132.40 a barrel, PVM data showed.

High-sulfur fuel oil’s discount to Dubai crude narrowed 8 cents to $3.66 a barrel, according to PVM. The spread shrank for a second day, paring refiners’ losses from making the fuel. Fuel-oil swaps for September fell $11.50, or 1.7 percent, to $682.50 a metric ton, PVM data showed.

BASE METALS

Copper fell in London, trimming a third weekly advance, before meetings of euro-area leaders to discuss the debt crisis that threatens demand.

PRECIOUS METALS

Gold was seen falling for the first time in eight days in London on speculation some investors will sell the metal after it rallied to a four-month high.

Immediate-delivery bullion fell 0.1 percent to $1,668.65 an ounce by 10:03 a.m. in London. Prices are up 3.3 percent this week, the most since June. December-delivery futures were 0.1 percent lower at $1,671 on the Comex in New York.

Platinum for immediate delivery fell 0.2 percent to $1,538.90 an ounce, after reaching $1,561.50 yesterday, the highest since May 3. About one-fifth of global output capacity was idled in South Africa yesterday to mourn the killing of 44 miners because of union trouble and police shooting, the deadliest police violence since apartheid ended.

GRAINS, OILSEEDS, SOFT COMMODITIES

Soybeans were set for the biggest weekly gain in five weeks as further evidence of damage to crops caused by the worst U.S. drought in half a century emerged from a farmers’ survey. Corn and wheat advanced.

Soybeans for November delivery climbed 0.9 percent to $17.305 a bushel on the Chicago Board of Trade by 10:32 a.m. in London. Futures, which touched a record $17.4475 yesterday, are poised to climb 5.2 percent this week, the most since the period ended July 20.

Corn for December delivery rose 0.8 percent to $8.215 a bushel, 1.8 percent higher for the week. Wheat for December delivery gained 0.9 percent to $9.0275 a bushel, headed for the first weekly advance in three weeks. In Paris, November-delivery milling wheat rose 0.3 percent to 264.75 euros ($333.86) a metric ton on NYSE Liffe, up 0.8 percent for the week.

Palm oil is poised for the biggest weekly gain in more than four months as its discount to soybean oil widened, increasing the appeal of the tropical oil.

Palm oil for delivery in November advanced as much as 1.2 percent to 3,097 ringgit ($1,000) a metric ton on the Malaysia Derivatives Exchange, and was at 3,073 ringgit at 4:04 p.m. in Kuala Lumpur. Futures are poised to increase 3.8 percent this week, the most since the five days ended April 6.

Rubber advanced for a second week on speculation that China, the biggest buyer, will add stimulus to boost growth, increasing demand for the commodity used in tires, and Thailand will take more steps to support prices.

To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net

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