Oil fell in New York as investors speculated that a rally to the highest level in almost four months was excessive amid rising stockpiles and concern the U.S. economic recovery may be derailed by a budget dispute.
Crude for February delivery dropped as much as 43 cents to $93.71 a barrel in electronic trading on the New York Mercantil Exchange and was at $93.86 at 4:09 p.m. Singapore time. The contract increased to $94.14 yesterday, the highest settlement since Sept. 18. Prices fell 7.1 percent last year.
OIL PRODUCTS Asia’s gasoil crack spread rebounds, signaling rising profit for refiners making diesel. Naphtha and fuel oil swaps increase.
• Middle Distillates • Gasoil’s premium to Dubai crude up 48 cents at $20.47/bbl at 10:18 a.m. Singapore time, according to PVM Oil Associates • Crack spread widest since Dec. 21 • February gasoil swaps up 65 cents, or 0.5%, at $127.25/bbl • Jet fuel regrade unchanged for second day at premium of 40 cents/bbl
• Light Distillates • Naphtha’s premium to London Brent crude up $4.10 at $84.45/ton at 10:19 a.m. Singapore time, according to data compiled by Bloomberg • Crack spread widens for first time in three days • February naphtha swaps up $3.50, or 0.4%, at $926.75/ton, PVM said • Gasoline reforming margin yesterday fell 64 cents to close at $14.24/bbl, data compiled by Bloomberg show
• Fuel Oil • High-sulfur fuel oil’s discount to Dubai crude shrinks 18 cents to $5.95/bbl at 10:18 a.m. Singapore time, according to PVM • Crack spread narrows for fifth time in six days • February HSFO swaps up $2.25, or 0.4%, at $640.25/ton • Viscosity spread unchanged after dropping to $7.25/ton, narrowest since October
Copper fell to the lowest level in two weeks as mined output of the metal by Rio Tinto Group increased more than forecast.
Copper for delivery in three months on the London Metal Exchange dropped 0.2 percent to $7,984.50 a metric ton at 3:33 p.m. Shanghai time, the lowest since Dec. 31. Copper for March delivery on the Comex in New York was little changed at $3.6275 per pound.
Platinum surged to a three-month high, exceeding the price of gold for the first time since April, after the world’s largest producer said it will cut production. Gold, silver and palladium advanced.
Cash platinum climbed as much as 2.2 percent to $1,693.50 an ounce, the most expensive since Oct. 9, and traded at $1,689.11 at 4:03 p.m. Singapore time. Spot gold added 0.5 percent to $1,675.89 an ounce. Silver added 0.6 percent to $31.245 an ounce, while palladium increased 1.4 percent to $713.53 an ounce.
GRAINS, OILSEEDS, SOFT COMMODITIES
Wheat climbed for a third day, the longest winning streak since November, as cold weather in the U.S. added to concerns over global supply already cut by higher feed use. Soybeans dropped.
Wheat for March delivery gained as much as 0.8 percent to $7.7275 a bushel on the Chicago Board of Trade and was at $7.695 at 2:26 p.m. in Singapore. Futures advanced 19 percent last year.
Corn for March delivery was little changed at $7.245 a bushel while soybeans for delivery in the same month slipped 0.6 percent to $14.0975 a bushel.
Palm oil gained after soybeans surged the most in more than six months yesterday on signs that U.S. stockpiles are tightening, increasing concerns that global oilseed supplies may dwindle.
The contract for delivery in March advanced as much as 1.8 percent to 2,413 ringgit ($802) a metric ton on the Malaysia Derivatives Exchange in Kuala Lumpur, before ending the morning session at 2,399 ringgit in Kuala Lumpur.
Rubber retreated from a nine-month high as the Japanese currency climbed against all of its 16 major peers after comments by Japan’s economy minister raised concerns the nation won’t try to further weaken the currency.
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