Oil fell in New York on speculation the biggest weekly advance in almost four months was excessive even amid signs of economic growth in the U.S., the world’s biggest crude consumer.
Crude for February delivery declined as much as 53 cents to $92.56 a barrel and was at $92.62 in electronic trading on the New York Mercantile Exchange at 4:06 p.m. Singapore time. The contract rose 17 cents to $93.09 on Jan. 4, the highest settlement since Jan. 2. Prices slid 7.1 percent last year.
Asia gasoil’s premium to Dubai was at the highest level in more than a week. Fuel oil’s discount to the Middle Eastern crude widened.
• Middle Distillates • Gasoil crack to Dubai crude rises 65 cents to $19.63/bbl at 10:22 a.m. Singapore time, according to PVM Oil Associates • Crack at the highest level since Dec. 28 • Feb. gasoil swap gains $1.07 to $125.60/bbl • Jet fuel is at discount of 10 cents/bbl to gasoil
• Fuel Oil • High-sulfur fuel oil’s discount to Dubai widens 54 cents to $5.69/bbl, PVM data showed • Fuel oil crack or discount to crude was at $5.16/bbl on Jan. 4, the narrowest since Oct. 23 • HSFO swap for Feb. falls 75 cents to $636.75/ton • March swap trades at 25 cents/ton premium to Feb. swap • Viscosity spread unchanged at $9.75/ton
• Light Distillates • Japan’s naphtha crack to Brent rose $3.35 to $91.24/ton, according to Bloomberg data • Crack widens for first time in six days • Jan. naphtha swap rises $4.25 to $930.75/ton, PVM data shows • Gasoline reforming margin fell 60 cents to $15.79/bbl on Jan. 4, according to Bloomberg data
Copper traded little changed after the biggest weekly advance in more than a month as investors weighed rising inventories in China and a jump in orders to move the metal out of London Metal Exchange warehouses.
Gold gained, rebounding from the worst run of weekly losses since 2004, as a drop to the cheapest in more than four months lured buyers amid record low interest rates in the U.S. Silver, platinum and palladium advanced.
Spot gold rose as much as 0.4 percent to $1,662.50 an ounce, and traded at $1,658.42 at 3:24 p.m. in Singapore. Bullion tumbled to $1,625.85 on Jan. 4, the lowest price since Aug. 21, after minutes from the U.S. Federal Reserve indicated that its bond-buying program may end this year. Gold’s 14-day relative strength index was at 40 today after six weeks of losses, with a reading below 30 signaling prices may be poised to rebound. Shanghai Futures Exchange, rebounding from a two-week low.
GRAINS, OILSEEDS, SOFT COMMODITIES
Corn rebounded from the lowest level in six months and soybeans gained as investors weighed the impact of excessive rains on crops in Argentina against an improving outlook for harvests in Brazil. Wheat advanced.
Corn for delivery in March rose as much as 1 percent to $6.8675 a bushel on the Chicago Board of Trade, and traded at $6.855 a bushel at 1:25 p.m. in Singapore. The most-active contract earlier fell to $6.78, the cheapest since July 3.
Soybeans for March delivery advanced for the first time this month, rising as much as 1.4 percent to $13.86 a bushel, and traded at $13.7925. Earlier, the price dropped 0.8 percent.
In the U.S., last year’s largest grower and exporter, the soybean crop harvested in the year that began Sept. 1, probably reached 2.99 billion bushels, compared with USDA’s estimate of 2.97 billion in December, according to the average estimate of 31 analysts in a separate Bloomberg News survey.
Wheat for delivery in March gained 0.6 percent to $7.515 a bushel. Futures dropped 1.1 percent on Jan. 4, ending the week down 4 percent.
Rubber declined from an eight-month high as Japan’s currency strengthened and the country’s car sales dropped, raising concern that demand for the commodity used in tires may falter.
Rubber for delivery in June lost 1.3 percent to settle at 303.7 yen a kilogram ($3,458 a metric ton) on the Tokyo Commodity Exchange. The most-active contract earlier climbed to 313.7 yen, the highest level since May 7.
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