Oil rose for the first time in four days in New York after U.S. stockpiles declined unexpectedly and political leaders in the world’s biggest crude consumer expressed optimism about agreeing on a federal budget.
West Texas Intermediate crude for January delivery climbed s much as $1.19 to $87.68 a barrel in electronic trading on the New York Mercantile Exchange and was at $87.60 at 12:01 p.m. London time. The contract pared a $1.82 decline yesterday to lose down 69 cents at $86.49, the lowest since Nov. 15. Prices have fallen 11 percent this year.
Copper advanced as an accelerating economy in China, the biggest consumer, may increase demand and on optimism U.S. lawmakers will reach a budget agreement.
Gold rebounded from the biggest drop in more than three weeks as investor holdings expanded to a record and optimism returned that the so-called fiscal cliff in the U.S. will be avoided, hurting the dollar.
GRAINS, OILSEEDS, SOFT COMMODITIES
Cocoa climbed for a second day in London on speculation demand will rebound in the season that started this month just as the first shortage in three years emerges. Sugar advanced.
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