Oil fell for the first time in four days in New York amid forecasts of rising U.S. gasoline supplies and concern that a failure by lawmakers to agree on a budget may harm economic growth in the world’s largest crude consumer.
Crude for January delivery slipped as much as 57 cents to $88.52 a barrel in electronic trading on the New York Mercantile Exchange and was at $88.84 at 9:15 a.m. London time. The contract climbed 18 cents yesterday to $89.09, the highest close since Nov. 19. Prices are down 10 percent this year.
Asia’s naphtha crack spread extended losses, signaling eroding profit for refiners making the gasoline and petrochemical feedstock.
• Light Distillates • Naphtha’s premium to London Brent crude down 14 cents at $103.19/ton at 11:11 a.m. Singapore time, according to data compiled by Bloomberg • Crack spread narrows for the fourth time in five days • January naphtha swaps down $2.25, or 0.2%, at $936.75/ton, according to PVM Oil Associates Ltd. • Gasoline reforming margin yesterday fell 76 cents to close at $14.66/bbl, lowest since Nov. 14, data compiled by Bloomberg show
• Middle Distillates • Gasoil’s premium to Dubai crude down 22 cents at $20.40/bbl at 10:36 a.m. Singapore time, according to PVM • Crack spread narrows for the first time in three days • January gasoil swaps down 55 cents, or 0.4%, at $127.10/bbl • Jet fuel regrade up 10 cents at minus 80 cents/bbl, snaps seven-day losing streak
• Fuel Oil • High-sulfur fuel oil’s discount to Dubai crude narrows 29 cents to $9.10/bbl at 10:36 a.m. Singapore time, according to PVM • Crack spread narrows for a second day • January HSFO swaps down 25 cents at $619.75/ton • Viscosity spread unchanged after rising to $10.75/ton
Copper declined for the first time in four days after touching the highest level in more than six weeks as U.S. manufacturing unexpectedly shrank and a budget standoff intensified. Aluminum, zinc and lead retreated.
The contract for delivery in three months fell as much as 0.5 percent to $7,963.50 a metric ton on the London Metal Exchange and traded at $7,969 at 3:18 p.m. in Tokyo. The metal touched $8,045 yesterday, the highest level since Oct. 19.
Gold fell to a four-week low in London, dropping below $1,700 an ounce, as a stalemate in U.S. budget talks weighed on commodities.
Gold for immediate delivery dropped 0.6 percent to $1,705.41 an ounce by 9:23 a.m. in London. Prices reached $1,696.78, the lowest since Nov. 6. Gold for February delivery was 0.9 percent lower at $1,706.40 on the Comex in New York.
GRAINS, OILSEEDS, SOFT COMMODITIES
Dec. 4 (Bloomberg) -- Soybeans climbed a second day on concern that weather in South America may affect crops, reducing yields and boosting demand for U.S. supplies. Corn fell.
The contract for January delivery gained as much as 0.5 percent to $14.61 a bushel on the Chicago Board of Trade and was at $14.55 at 4:10 p.m. in Singapore. Corn for March delivery dropped 0.4 percent to $7.5175 a bushel. Wheat for March delivery dropped 0.5 percent to $8.565 a bushel, falling for the fourth straight session.
Palm oil fell for a sixth day, the longest losing streak since November 2011, on speculation that stockpiles in Malaysia, the biggest producer after Indonesia, will remain near a record as demand slows.
The contract for February delivery dropped as much as 1.6 percent to 2,279 ringgit ($749) a metric ton on the Malaysia Derivatives Exchange, the lowest level for the most-active contract since Nov. 12, and was at 2,292 ringgit at 5:02 p.m. in Kuala Lumpur. Futures are heading for the worst annual decline since the 2008 financial crisis.
Rubber retreated from a six-week high after U.S. manufacturing unexpectedly contracted, raising concern a recovery in the world’s biggest economy may stall.
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