Oil climbed the most in a week and gasoline rose to the highest in almost four months as Tropical Storm Isaac strengthened, crimping output in the Gulf of Mexico, and a fire in Venezuela shut part of the world’s No. 2 refinery.
Oil for October delivery increased as much as $1.57 to $97.72 a barrel in electronic trading on the New York Mercantile Exchange and was at $97.17 at 9:00 a.m. London time. Front-month prices were up 0.2 percent last week, closing at $96.15 on Aug. 24. Futures are down 1.7 percent this year.
Futures advanced as much as 2.4 percent after Isaac moved into the southeast Gulf and was forecast to strengthen into a hurricane. Offshore operators evacuated platforms and rigs in the storm’s path, shutting in about 8.2 percent of the region’s gas production and 24 percent of its oil output, the Bureau of Safety and Environmental Enforcement said yesterday .
The premium of gasoil, or diesel, to Asian marker Dubai crude rose $1.81 to $21.62 a barrel at 11:20 a.m. Singapore time, according to data from PVM Oil Associates Ltd. , a broker. This crack spread, a measure of processing profit, was the widest since April 15 last year. Gasoil swaps for September climbed $1.60, or 1.2 percent, to $133.10 a barrel, PVM said. Prices gained for the fourth time in five days.
Naphtha swaps for September lost 50 cents to $969.75 a metric ton, according to PVM. The petrochemical and gasoline feedstock snapped a two-day rising streak. Naphtha’s premium to London-traded Brent crude futures decreased $12.18 to $102.29 a ton, according to data compiled by Bloomberg. The difference is also known as the crack spread.
Copper is set to gain in New York on speculation that policy makers from the U.S. to China, the biggest users, will take more measures to stimulate growth, boosting demand for raw materials.
Gold jumped to a four-month high on speculation that central banks from the U.S. to China will act to spur economic growth and as investment holdings expanded to a record. Silver rose for a sixth day, the best run since January.
Immediate-delivery gold rose as much as 0.4 percent to $1,676.90 an ounce, the most expensive since April 13, and was at $1,674.45 at 2:23 p.m. in Singapore. Prices climbed 3.4 percent last week, the biggest gain since Jan. 27. December- delivery bullion advanced as much as 0.4 percent to $1,679.30 an ounce on the Comex in New York, the highest since April 12.
Spot silver rose as much as 1.6 percent to $31.265 an ounce, the highest level since May 1, and was last at $30.995.
GRAINS, OILSEEDS, SOFT COMMODITIES
Soybeans rallied to a record as the worst U.S. drought in half a century hurt production in the world’s largest grower while export demand increased. Corn and wheat climbed.
The contract for November delivery gained as much as 1.7 percent to $17.605 a bushel on the Chicago Board of Trade, and was at $17.5775 at 1:25 p.m. in Singapore. Most-active prices have advanced 46 percent this year.
Corn for December delivery rose as much as 1.2 percent to $8.18 a bushel, and traded at $8.1625. The most-active price, which has climbed 26 percent this year, reached a record $8.49 a bushel on Aug. 10.
December-delivery wheat advanced as much as 1.2 percent to $8.9925 a bushel, and was at $8.9625. The price has gained 37 percent this year.
Palm oil jumped to the highest level in six weeks on speculation the worst U.S. drought in half a century will trim soybean supplies, boosting demand for the tropical oil from Malaysia, the second largest grower.
The November-delivery contract gained as much as 1.7 percent to 3,122 ringgit ($1,004) a metric ton on the Malaysia Derivatives Exchange, the highest level for the most-active contract since July 17, and ended the morning session at 3,112 ringgit. Most-active prices rose 3.6 percent last week.
Rubber rallied to a three-week high on speculation policy makers from the U.S. to China, the biggest user, will add measures to stimulate growth, boosting demand for the commodity used in tires and gloves.
January-delivery rubber surged 3.3 percent to end at 228.6 yen a kilogram ($2,904 a metric ton) on the Tokyo Commodity Exchange, the highest price for the most-active contract since Aug. 2. Futures have declined 13 percent this year.
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