Oil Rises; Gold Climbs; Wheat, Rubber Fall: Commodities at Close

The Standard & Poor’s GSCI gauge of 24 commodities rose 0.1 percent to 665.92 at 5:43 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials increased 0.1 percent to 1,595.937.

CRUDE OIL

Oil in New York rose for a second day after the U.S. showed signs of economic growth and OPEC Secretary General Abdalla El- Badri said prices are unlikely to drop this year.

Crude for March delivery rose as much as 53 cents to $96.97 a barrel in electronic trading on the New York Mercantile Exchange and was at $96.92 at 3:21 p.m. Singapore time. The average volume of all contracts traded at that time was 8.9 percent above the 100-day average. Futures closed at $96.44 yesterday, the highest since Sept. 17.

Brent for March settlement rose 15 cents to $113.63 a barrel on the London-based ICE Futures Europe exchange. The average volume of all contracts traded was 33 percent below the 100-day average. The European benchmark grade was at a premium of $16.71 to West Texas Intermediate futures, from $17.04 yesterday.

OIL PRODUCTS

Asia’s gasoil crack spread rebounds, signaling increased profit for refiners making diesel. Fuel oil swaps advance.

• Middle Distillates • Gasoil’s premium to Dubai crude up 16 cents at $19.06/bbl at 10:46 a.m. Singapore time, according to PVM Oil Associates • Crack spread widens for first time in a week • February gasoil swaps up 60 cents, or 0.5%, at $127.80/bbl • Jet fuel regrade up 5 cents at premium of 85 cents/bbl

• Fuel Oil • Fuel oil’s discount to Dubai crude narrows 15 cents to $7.56/bbl at 10:46 a.m. Singapore time, according to PVM • Crack spread gains for second day • February fuel oil swaps up $3.75, or 0.6%, at $642.50/ton • Viscosity spread unchanged after rising to $5.50/ton

• Light Distillates • Naphtha’s premium to London Brent crude up $3.95 at $106.99/ton at 11:16 a.m. Singapore time, according to data compiled by Bloomberg • Crack spread widest in four days • February naphtha swaps up $4.25, or 0.4%, at $962.25/ton, PVM said • Gasoline reforming margin yesterday fell 33 cents to close at $15.48/bbl, data compiled by Bloomberg show

BASE METALS

Copper climbed for a second day on optimism that demand will rise with manufacturing gains in China and the U.S., the world’s biggest users of industrial metals.

The metal for three-month delivery climbed as much as 0.7 percent to $8,103 a metric ton on the London Metal Exchange and was at $8,102.25 at 4:21 p.m. in Tokyo. Futures for delivery in May advanced 0.4 percent to close at 58,850 yuan ($9,454) a ton on the Shanghai Futures Exchange.

PRECIOUS METALS

Gold climbed, snapping the longest losing streak since October, before the U.S. Federal Reserve begins a two-day policy meeting today that will probably press on with stimulus to bolster the world’s largest recovery.

Spot gold advanced as much as 0.5 percent to $1,664.33 an ounce and was at $1,664.26 at 3:43 p.m. in Singapore, ending four days of losses. Gold for April delivery, the contract with the biggest open interest, gained as much as 0.6 percent to $1,664.80 on the Comex in New York, and traded at $1,664.40. Cash silver gained 0.7 percent to $31.105 an ounce, after tumbling 4.3 percent in the past three days. Spot platinum rose 0.7 percent to $1,675.40 an ounce, trading above gold for a sixth day, the longest such run since March. Palladium climbed 0.8 percent to $745 an ounce, after reaching $749 yesterday, the highest price since September 2011.

GRAINS, OILSEEDS, SOFT COMMODITIES

Wheat declined for the first time in three days on speculation that rains forecast for the U.S. Great Plains will probably bring relief to crops affected by limited moisture as the worst drought since the 1930s persists.

Wheat for March delivery lost as much as 0.4 percent to $7.765 a bushel on the Chicago Board of Trade and was at $7.79 by 3:03 p.m. Singapore time. Futures, which climbed 19 percent last year, are little changed this month.

Rubber fell after a drop in pending home sales in the U.S. outweighed an advance in durable-goods orders and as China, the biggest buyer, slowed imports before the Lunar New Year holidays next month.

The contract for delivery in June, the most-active by open interest, dropped 0.3 percent to close at 309.4 yen a kilogram ($3,418 a metric ton) on the Tokyo Commodity Exchange. Futures for delivery in July, listed on the bourse yesterday, settled at 312.6 yen.

Soybeans for March delivery dropped as much as 0.5 percent to $14.41 a bushel before trading at $14.4575. Corn for March delivery fell as much as 0.2 percent to $7.275 a bushel before trading at $7.29, after gaining 1.2 percent yesterday, the biggest advance at close in two weeks.

Palm oil gained on speculation that exports from Malaysia may increase after Indonesia, the world’s largest-producer, announced higher taxes on February shipments.

The contract for delivery in April advanced as much as 1.3 percent to 2,477 ringgit ($805) a metric ton on the Malaysia Derivatives Exchange, and traded at 2,472 ringgit at 3:54 p.m. in Kuala Lumpur. Futures are heading for a 1.4 percent gain this month. Financial markets in Malaysia were closed yesterday.

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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