Crude Rises; Copper Set for Weekly Gain: Commodities at Close

The Standard & Poor’s GSCI gauge of 24 commodities climbed 0.04 percent to 635.96 at 5:55 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials dropped 0.08 percent to 1,580.009.

CRUDE OIL

Oil rose in New York, snapping three days of losses and trimming a weekly decline after forecasts showing China’s industrial production rose at the fastest pace since March boosted speculation fuel demand will increase.

Crude for January delivery was at $86.45 a barrel, up 19 cents, in electronic trading on the New York Mercantile Exchange at 4:41 p.m. Singapore time. The contract slid $1.62 yesterday to $86.26, the lowest close since Nov. 15. Prices are down 2.8 percent this week and 13 percent this year.

OIL PRODUCTS

Asia’s fuel-oil crack spread is poised to narrow for the first time in three weeks, signaling reduced losses for refiners turning crude into residual products.

• Fuel Oil • High-sulfur fuel oil’s discount to Dubai crude narrows 54 cents to $7.05/bbl at 10:27 a.m. Singapore time, according to PVM Oil Associates Ltd. • Crack spread gains for fifth day, longest rising streak since June • January HSFO swaps down $6.25, or 1%, at $611.75/ton • Viscosity spread unchanged for third day at $11.50/ton, set for biggest weekly gain since May

• Middle Distillates • Gasoil’s premium to Dubai crude was at $19.96/bbl at 10:27 a.m. Singapore time, according to PVM • Crack spread set for third weekly gain • January gasoil swaps down $2.22, or 1.8%, at $123.35/bbl • Jet fuel at 70 cents/bbl below gasoil, regrade at discount for fifth day

BASE METALS

Copper is poised for a fourth weekly advance in the best run since February, on prospects for increased demand in China and U.S., the world’s two largest consumers of the metal used in pipes and wires.

Metal for delivery in three months climbed as much as 0.2 percent to $8,018.50 a metric ton on the London Metal Exchange and was at $8,000 at 2:08 p.m. Shanghai time. The price has climbed 5.3 percent this year, touching $8,089 yesterday, the highest level since Oct. 19.

PRECIOUS METALS

Gold swung between gains and losses near $1,700 an ounce in London as the dollar strengthened and amid speculation of more central-bank stimulus. Palladium headed for its best weekly run in two years.

Gold for immediate delivery added 14 cents to $1,700.04 an ounce by 9:04 a.m. in London. Prices rose 0.2 percent earlier today and are down 0.9 percent this week, reaching a four-week low of $1,684.93 on Dec. 5. Gold for February delivery was little changed at $1,701.30 on the Comex in New York.

GRAINS, OILSEEDS, SOFT COMMODITIES

Soybeans headed for the biggest weekly advance since August as excess rains dim output prospects in Argentina, the world’s third-largest grower, boosting demand for U.S. supply. Wheat declined.

Soybeans for January delivery climbed as much as 0.5 percent to $14.9825 a bushel on the Chicago Board of Trade, the highest price since Nov. 9, and were at $14.9525 at 3:39 p.m. Singapore time. The most-active contract is set for a 3.9 percent increase this week, the biggest gain since the five-days ended Aug. 24.

Wheat for March delivery dropped 0.2 percent to $8.6025 a bushel in Chicago. Corn for delivery in the same month was little changed at $7.5075 a bushel.

Palm oil climbed for a second day, paring a third weekly drop, as some traders reversed bets on declines ahead of data from Malaysia next week that may show stockpiles in the second- largest producer held near a record.

The contract for February delivery gained as much as 2.1 percent to 2,342 ringgit ($766) a metric ton on the Malaysia Derivatives Exchange, and traded at 2,308 ringgit at 5:16 p.m. in Kuala Lumpur.

Rubber pared a weekly advance on concern that demand may weaken after the European Central Bank cut its forecast for euro-area economic growth and as data may show U.S payrolls rose by the smallest amount since June.

To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net

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