Oil declined from the highest price in a week in New York on speculation that crude stockpiles climbed in the U.S., the world’s biggest user of the commodity.
Crude for November delivery dropped as much as 68 cents to $91.71 a barrel in electronic trading on the New York Mercantile Exchange and was at $92.04 at 8:42 a.m. London time. The contract increased $3.06 yesterday to $92.39, the highest close since Oct. 1. Prices are down 7 percent this year.
Asia’s fuel oil crack spread widened to the biggest discount since July last year, signaling increased losses for refiners making residual products.
• Fuel Oil • High-sulfur fuel oil crack to Dubai crude down $1.57 at a discount of $8.82/bbl at 10:21 a.m. Singapore time, according to PVM Oil Associates Ltd. • November HSFO swaps unchanged after falling to $641.25/ton • Viscosity spread unchanged after rising to $11.75/ton
• Middle Distillates • Gasoil crack to Dubai crude down 7 cents at $19.60/bbl at 10:21 a.m. Singapore time, according to PVM • November gasoil swaps up $1.50, or 1.2%, at $129.40/bbl • Jet-fuel regrade unchanged after climbing to $1.75/bbl
Aluminum declined to the lowest level in a month, retreating for a fourth day, after Alcoa Inc. (AA) cut its forecast for global demand citing slowing growth in China, the world’s biggest user. Copper fell.
Primary aluminum for delivery in three months slipped as much as 1.4 percent to $2,025 a metric ton on the London Metal Exchange, the lowest price since Sept. 10, and traded at $2,026 at 4:07 p.m. in Seoul. Copper lost as much as 0.3 percent to $8,122.50 a ton and was at $8,125.50.
Gold traded close to the lowest level in more than a week ahead of French and Italian industrial data due today that may show Europe’s debt crisis is hampering growth, weakening the euro and demand for the precious metal.
Spot gold fell as much as 0.2 percent to $1,760.85 an ounce and traded at $1,761.93 at 2:05 p.m. in Singapore. The metal dropped to $1,760.43 yesterday, the lowest level since Sept. 27. Gold for December delivery was little changed at $1,765.90 an ounce on the Comex in New York. Holdings in exchange-traded products rose to a record 2,582.43 tons yesterday, according to data compiled by Bloomberg.
GRAINS, OILSEEDS, SOFT COMMODITIES
Palm oil advanced for a second day to the highest level in more than a week after Malaysia, the second-biggest producer, signaled that it may reduce a tax on exports after prices slumped to a three-year low last week.
The December-delivery contract rose as much as 1.9 percent to 2,483 ringgit ($808) a metric ton on the Malaysia Derivatives Exchange, the highest price for a most-active contract since Oct. 1, and was at 2,480 ringgit at 4:09 p.m. in Kuala Lumpur. Futures fell on Oct. 2 to the lowest close since November 2009 as stockpiles climbed and demand cooled. Official data released today showed Malaysian reserves at an all-time high last month.
Rubber fell to the lowest close in more than a week on concern that the debt crisis in Europe and weaker vehicle sales in China will weaken demand for the commodity used in tires and gloves.
Rubber for delivery in March dropped as much as 1.8 percent to 268.8 yen a kilogram ($3,443 a metric ton) on the Tokyo Commodity Exchange, before settling at 269.4 yen, the lowest finish since Oct. 1.
Soybeans dropped after a government report showed U.S. farmers completed more than half of their harvesting, easing concerns of a shortage after a drought damaged crops.
Soybeans for November delivery fell as much as 0.9 percent to $15.3625 a bushel on the Chicago Board of Trade and were at $15.44 at 2:12 p.m. Singapore time. Futures have tumbled 14 percent from a record reached on Sept. 4 as the worst U.S. drought in half a century shriveled crops.
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