Oil rose for a third day in New York on speculation that an agreement will be reached to avert a U.S. budget impasse that would trigger automatic spending cuts and tax increases next year, sapping demand for fuels.
Crude for January delivery climbed as much as 70 cents to $87.90 in electronic trading on the New York Mercantile Exchangeand was at $87.79 at 3:28 p.m. Singapore time. The contract, which expires tomorrow, rose 47 cents to $87.20 yesterday, the highest close since Dec. 5. The more-actively traded February future was up 59 cents at $88.26 a barrel.
OIL PRODUCTS Asia’s fuel oil crack spread widened, signaling increased losses for refiners turning crude into residual products. Jet fuel extended gains over gasoil.
• Fuel Oil • High-sulfur fuel oil’s discount to Dubai crude widened 12 cents to $7.42/bbl at 10:14 a.m. Singapore time, according to PVM Oil Associates Ltd. • Crack spread widens fourth time in five days • January HSFO swaps up 50 cents at $615/ton • Viscosity spread unchanged after advancing to $10.25/ton
• Middle Distillates • Gasoil’s premium to Dubai crude down 35 cents at $19.33/bbl at 10:14 a.m. Singapore time, according to PVM • Crack spread narrowest so far this month • January gasoil swaps down 15 cents at $123.60/bbl • Jet fuel up 10 cents at premium of 35 cents/bbl to gasoil • Regrade climbs for 10th day, longest rising streak since records started in August 2006
• Light Distillates • Naphtha’s premium to London Brent crude down 69 cents at $116.35/ton at 10:34 a.m. Singapore time, according to data compiled by Bloomberg • Crack spread declines from highest since Nov. 7 • January naphtha swaps up $3, or 0.3%, at $931/ton, PVM said • Gasoline reforming margin yesterday rebounded 66 cents to close at $12.80/bbl, data compiled by Bloomberg show
Copper gained for the first time in four days as industrial metals advanced on signs that U.S. lawmakers will reach an agreement on the budget.
Metal for delivery in three months rose as much as 0.3 percent to $8,090 a metric ton on the London Metal Exchange, before trading at $8,079 by 1:41 p.m. Shanghai time. The contract has gained 6.3 percent this year. The March contract on the Comex in New York rose 0.4 percent to $3.681 a pound.
Gold climbed from a one-week low, gaining with other commodities including oil, on optimism U.S. lawmakers will reach agreement on the budget to avert automatic spending cuts. Silver rose from the lowest in more than a month.
Spot gold rose as much as 0.3 percent to $1,703.35 an ounce, and traded at $1,701.70 an ounce at 3:52 p.m. in Singapore, advancing for a second day. It dropped to $1,686.70 yesterday, the lowest price since Dec. 7. Gold for February delivery gained 0.3 percent to $1,702.90 an ounce on the Comex in New York.
Cash silver climbed 0.5 percent to $32.43 an ounce and is 16 percent higher this year. The best performing precious metal this year fell to $32.0612 yesterday, the cheapest since Nov. 8.
GRAINS, OILSEEDS, SOFT COMMODITIES
Soybeans declined for a second day as rains improved the production outlook for Brazil, poised to be the largest shipper this year.
Soybeans for March delivery lost as much as 0.7 percent to $14.7825 a bushel on the Chicago Board of Trade. Futures traded at $14.845 a bushel at 3:10 p.m. Singapore time, paring the annual advance to 23 percent. The oilseed surged to a five-week high of $15.0125 yesterday after data showed crushing in the U.S. increased in November to the highest level since 2010.
Wheat for delivery in March climbed as much as 0.7 percent to $8.14 a bushel, before trading unchanged at $8.08. The grain has advanced 24 percent this year. Corn for March delivery was little changed at $7.235 a bushel, trimming this year’s advance to 12 percent.
Rubber advanced to a seven-month high after President Barack Obama made a new budget offer, raising optimism an agreement may be reached to avert automatic spending cuts and tax increases in the world’s biggest economy.
Rubber for delivery in May gained 0.5 percent to 285.7 yen a kilogram ($3,404 a metric ton) on the Tokyo Commodity Exchange, the highest level for the most-active contract at close since May 10. Futures have climbed 8.5 percent this year.
Palm oil retreated on concern that stockpiles in Malaysia, the world’s second-largest producer, may remain near record levels as exports decline.
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