Oil traded near the highest level in two weeks in New York after an industry report showed stockpiles fell the most in more than three months in the U.S., the world’s biggest crude consumer.
Crude for January delivery was at $88.01 a barrel, up 8 cents, in electronic trading on the New York Mercantile Exchange at 3:54 p.m. Singapore time. The contract expires today. The more-actively traded February future added 8 cents to $88.48. The volume traded for all contracts was 53 percent below the average of the past 100 days. Front-month futures rose 0.8 percent yesterday to $87.93, the highest close since Dec. 4.
Asia fuel oil’s discount to Dubai crude widened. Naphtha’s premium to Brent crude gained for the second time in the past three days.
• Fuel Oil • High-sulfur fuel oil’s discount, or the crack spread, to Dubai crude widens 10 cents to $7.46/bbl at 10:21 a.m. Singapore time, according to PVM Oil Associates. • Discount to crude is the biggest since Dec. 6 • High-sulfur fuel oil swaps for Jan. rise $2.25 to $617.75/ton. • Feb. swaps trade at $2.75/ton premium to Jan. swap • Viscosity spread unchanged at $10.25/ton
• Middle Distillates • Gasoil crack to Dubai unchanged at $19.21/bbl, PVM data showed • Jan. gasoil swaps rose 45 cents to $123.95/bbl • Jet fuel regrade at a premium of 30 cents/bbl
• Light Distillates • Japan naphtha’s crack to Brent crude rose $5.35 to $115.85/ton, according to Bloomberg data • Jan. naphtha swap rose $6.25 to $936.75/ton, PVM data showed • Gasoline reforming margin yesterday rose 38 cents to $13.18/bbl in Singapore, Bloomberg data showed
Copper traded near the lowest level in more than a week as inventories at London Metal Exchange warehouses climbed to a nine-month high. Zinc, lead and nickel also declined.
Metal for delivery in three months was little changed at $8,021.50 a metric ton on the LME at 2 p.m. Shanghai time. It fell to $8,006.25 on Dec. 17, the lowest since Dec. 7. Copper for March delivery on the Shanghai Futures Exchange fell 0.4 percent to 57,630 yuan ($9,250) a ton.
Gold rebounded from the lowest price in more than three months as some investors ended bets on declines, with U.S. lawmakers seeking an agreement on a new budget to avert automatic spending cuts and tax rises.
Gold for immediate delivery gained as much as 0.3 percent to $1,676.85 an ounce and was at $1,675.50 at 1:45 p.m. in Singapore. The price fell to $1,661.10 yesterday, the lowest since Aug. 31, as optimism that a deal may be reached boosted equities and pared demand for the metal as an alternative asset.
GRAINS, OILSEEDS, SOFT COMMODITIES
Palm oil declined by the most in a week after China canceled some soybean purchases, signaling weaker demand for vegetable oils in the world’s biggest buyer.
The contract for March delivery slid as much as 1.2 percent to 2,313 ringgit ($758) a metric ton on the Malaysia Derivatives Exchange, the biggest intraday fall since Dec. 12. The price was at 2,318 ringgit at 12:01 p.m. in Kuala Lumpur.
Rubber advanced to the highest level in more than seven months as speculation that the Bank of Japan will add monetary stimulus weakened the nation’s currency, boosting the appeal of yen-based contracts.
Rubber for delivery in May gained 0.7 percent to end at 287.7 yen a kilogram ($3,410 a metric ton) on the Tokyo Commodity Exchange, the highest level for the most-active contract at close since May 10. Futures have advanced 9.2 percent this year.
Wheat climbed for a second day on signs of increased demand from importers amid shrinking supply from shippers including Argentina. Soybeans and corn dropped.
Wheat for delivery in March climbed as much as 0.7 percent to $8.165 a bushel on the Chicago Board of Trade, and was at $8.13 at 1:20 p.m. in Singapore. While that takes its gain this year to 25 percent, making it the best performer on the Standard & Poor’s GSCI Commodity Index of 24 raw materials, it’s dropped 14 percent since trading in July at the highest level in almost four years.
Soybeans for delivery in March lost 0.3 percent to $14.5675 a bushel after dropping 1.9 percent yesterday on the cancellation of 420,000 tons of U.S. exports registered for delivery before Sept. 1, including 300,000 tons bound for China. The oilseed has risen 21 percent this year.
Corn for March delivery slipped 0.3 percent to $7.18 a bushel. Most-active prices have risen 11 percent this year.
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