Oil Advances as Natural Gas Tumbles: Commodities at Close

The Standard & Poor’s GSCI gauge of 24 commodities rose 1.1 percent to 649.34 at 4 p.m. The UBS Bloomberg CMCI index of 26 raw materials was up 0.8 percent at 1,588.899.

CRUDE OIL

Oil rose for the first time in four days as the U.S. economy expanded more than previously estimated last quarter and on optimism that President Barack Obama will reach an agreement with Congress over a new budget.

Crude oil for January delivery climbed $1.58, or 1.8 percent, to $88.07 a barrel on the New York Mercantile Exchange. Prices are down 11 percent this year.

Brent oil for January settlement rose $1.25, or 1.1 percent, to end the session at $110.76 a barrel on the London- based ICE Futures Europe exchange.

Oil markets: NI CRMKTS

NATURAL GAS

Natural gas futures tumbled in New York, heading for the biggest weekly decline since June, after a government report showed an unexpected gain in U.S. stockpiles as mild weather reduced demand.

Natural gas for January delivery fell 15.3 cents, or 4 percent, to $3.648 per million British thermal units on the New York Mercantile Exchange.

U.S. natural gas: NI NUSMKT

U.K. natural gas: NI NUKMKT

OIL PRODUCTS

Heating oil and gasoline climbed on optimism U.S. lawmakers will reach consensus on a budget deal and as economic reports showed some gains for the economy.

December-delivery heating oil rose 3.26 cents, or 1.1 percent, to settle at $3.0406 a gallon on the New York Mercantile Exchange. Prices are down 0.9 percent this month.

The more actively traded January contract climbed 3.6 cents, or 1.2 percent, to $3.0569. December heating oil and gasoline futures will expire tomorrow.

Gasoline for December delivery gained 5.31 cents, or 1.9 percent, to $2.787 a gallon, the highest settlement since Oct. 16. Prices have risen 0.9 percent in November. The January contract advanced 4.57 cents, or 1.7 percent, to $2.7334.

U.S. oil product futures: NI OPFMKT

Oil Products Europe: NI OPEMKT

Gasoline: NI GASOLINE

Heating oil: NI HEATOIL

SOFT COMMODITIES

Cotton rose to a five-week high on optimism that U.S. lawmakers will reach a budget accord, avoiding a fiscal cliff that would hurt the economy and cut commodity use. Cocoa, sugar, coffee and orange juice gained.

Cotton for March delivery climbed 1 percent to settle at 73.35 cents a pound on ICE Futures U.S. in New York. Earlier, the price reached 73.98 cents, the highest for a most-active contract since Oct. 24.

Cocoa futures for March delivery gained 1.3 percent to $2,491 a metric ton on ICE.

Raw-sugar futures for March delivery rose 0.9 percent to 19.34 cents a pound.

Arabica-coffee futures for March delivery advanced 1 percent to $1.564 a pound.

Orange juice futures for January delivery increased 0.7 percent to $1.241 a pound.

Soft commodities markets: NI SOMKTS

GRAINS, OILSEEDS

Corn futures fell from a five-week high as demand by producers of grain-based fuel, animal feed and food ebbed. Soybeans gained.

Corn for March delivery dropped 0.7 percent to close at $7.5875 a bushel on the Chicago Board of Trade. Yesterday, the price reached $7.675, the highest for a most-active contract since Oct. 19. The grain has gained 17 percent this year after a Midwest drought reduced production.

Soybean futures for January delivery rose 0.1 percent to $14.48 a bushel in Chicago. Earlier, the price reached $14.60, the highest since Nov. 9. Export demand increased last week for animal feed and cooking oil made from supplies in the U.S., the world’s biggest producer.

Wheat futures for March delivery slid 0.6 percent to close at $8.855 a bushel. The price has gained 36 percent this year as dry weather reduced global production 6.4 percent to a five-year low.

Grain markets: NI GRMKTS

BASE METALS

Copper rose to a five-week high on optimism that U.S. lawmakers will reach a budget accord, while signs increased that metal demand will rise in China.

Copper futures for March delivery jumped 1.9 percent to settle at $3.6055 a pound on the Comex in New York. Earlier, the price reached $3.622, the highest for a most-active contract since Oct. 23.

On the London Metal Exchange, copper for delivery in three months increased 1.7 percent to $7,899.50 a metric ton ($3.58 a pound). Aluminum jumped 3.2 percent to $2,064 a ton, the biggest gain since Sept. 14. Zinc, lead, nickel and tin also advanced.

Base metals markets: NI BMMKTS

PRECIOUS METALS

Gold rose for the first time in four days on speculation that the Federal Reserve will buy more debt to boost the U.S. economy. Silver climbed to a seven-week high.

Gold futures for February delivery gained 0.6 percent to settle at $1,729.50 an ounce on the Comex in New York. The price slumped 1.9 percent in the previous three days.

Silver futures for March delivery increased 2 percent to $34.431 an ounce on the Comex. Earlier, the price reached $34.49, the highest since Oct. 8. The metal has advanced 23 percent this year.

On the New York Mercantile Exchange, platinum futures for January delivery rose 0.5 percent to $1,619.50 an ounce.

Palladium futures for March delivery gained 1.8 percent to $687.45 an ounce. Earlier, the price reached $692, the highest since Sept. 17.

Precious metal markets: NI PCMKTS

LIVESTOCK

Cattle rose for the first time this week on signs of rising demand amid shrinking supplies as meatpackers curb slaughter rates. Hog prices fell.

Cattle futures for February delivery advanced 0.3 percent to close at $1.321 a pound on the Chicago Mercantile Exchange. Prices lost 0.8 percent in the previous three sessions. On Nov. 23, the commodity climbed to a record $1.32925.

Feeder-cattle futures for January settlement gained 0.5 percent to $1.4675 a pound.

Hog futures for February settlement fell 0.5 percent to settle at 87.125 cents a pound after climbing as much as 0.7 percent.

Livestock markets: NI LVMKTS

To contact the reporter on this story: Mario Parker in Chicago at mparker22@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

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