West Texas Intermediate rebounded from the lowest level since December, trimming the largest weekly decline in more than two months. U.S. crude stockpiles increased a fifth week, the longest stretch of gains since May.
WTI for April delivery rose as much as 52 cents to $93.36 a barrel in electronic trading on the New York Mercantile Exchange and was at $93.29 at 8:23 a.m. London time. The contract fell to $92.84 yesterday, the lowest settlement since Dec. 31. The volume of all futures traded was 30 percent above the 100-day average. Prices are down 2.6 percent this week and set for the second weekly drop in three.
Brent crude for April settlement on the London-based ICE Futures Europe exchange climbed as much as 0.9 percent to $114.49 a barrel. It fell $2.07 to $113.53 yesterday. The volume was 30 percent higher than the 100-day average. The European benchmark grade was at a premium of $20.98 to WTI. The gap expanded to $23.18 on Feb. 8, the widest since Nov. 26.
Asia’s gasoil crack spread shrinks for a second day, signaling reduced profit for refiners making diesel. Trafigura buys gasoline and gasoil cargoes in Singapore, the region’s largest oil-trading center.
• Light Distillates • Singapore naphtha’s discount to London Brent crude widens 19 cents to $7.81/bbl as of 5:32 p.m. Singapore time, according to data compiled by Bloomberg • March Japan naphtha swaps up $9.40 at $965.99/mt • March East-West naphtha spread up 21 cents at $8.13/mt • Itochu buys 25,000 mt of open-spec naphtha for 2H April delivery from Mabanaft at $986/mt, according to Bloomberg survey of traders who monitor Platts window • Glencore sells 25,000 mt of 1H April/1H May naphtha timespread to Shell at $27/mt • Trafigura buys 50,000 bbl of 92-RON gasoline from Vitol at $130.10/bbl for March 9-13 loading • PetroChina sells 50,000 bbl of 95-RON grade to Shell at $134.70/bbl for March 11-15 loading
• Middle Distillates • Gasoil’s premium to Dubai crude down 55 cents at $21.57/bbl • March gasoil swaps up 58 cents at $131.70/bbl • March gasoil swap trades at 62 cents/bbl above April contract • March East-West gasoil spread narrows $1.16 to 27 cents/mt • Jet fuel regrade up 5 cents at 20 cents/bbl • March kerosene swap trades $1.07/bbl above April contract • Trafigura buys 150,000 bbl of 0.25% sulfur gasoil from Shell at 90 cents/bbl discount to March 6-12 prices, for March 9-13 loading, according to Bloomberg survey
• Fuel Oil • Fuel oil’s discount to Dubai crude widens 3 cents to $8.33/bbl • March 180-cst fuel oil swaps up $6.95 at $646.40/mt • March fuel oil swap trades $1.65/mt below April contract • Viscosity spread widens 12 cents to $6.02/mt • March East-West fuel oil spread widens 27 cents to $28.17/mt • BP buys 20,000 mt of 380-cst fuel oil from Gunvor at $635/mt for March 9-13 loading, according to Bloomberg survey
Industrial metals advanced after the longest losing streak since October, with nickel climbing the most in three weeks after data showed orders to remove the metal from warehouses increased.
Nickel for delivery in three months on the London Metal Exchange rose as much as 2.5 percent, the most since Jan. 30, to $17,050 a metric ton, and traded at $17,031 at 2:38 p.m. in Shanghai. The LME Index of six primary metals fell for the fifth day yesterday, declining to the lowest level since Dec. 24.
Copper for delivery in May on the Shanghai Futures Exchange gained 0.2 percent to 57,740 yuan ($9,259) a ton, and the May contract on the Comex in New York rose 1 percent to $3.6055 per pound. Copper, aluminum, zinc, tin and lead on the LME climbed.
Gold is poised for its third weekly decline on concern that the U.S. Federal Reserve will slow the pace of stimulus, spurring a plunge in asset holdings as the dollar surged to the highest level since September.
Gold for immediate delivery was 0.3 percent higher at $1,580.60 an ounce at 9:56 a.m. in Singapore, down 1.8 percent this week. The price -- which slumped to $1,555.55 yesterday, the lowest level since July 12 -- has declined 5.7 percent in 2013 after a bull run that’s lasted for 12 years.
Platinum for immediate delivery climbed as much as 0.9 percent to $1,629 an ounce and traded at $1,627.50. Prices are 3.2 percent lower this week, the biggest fall since Dec. 21.
Spot silver climbed 0.5 percent to $28.805 an ounce, paring a third weekly drop. Palladium rallied 1.1 percent to $740.60 an ounce, set for a weekly loss.
GRAINS, OILSEEDS, SOFT COMMODITIES
Soybeans climbed for a fifth day, set for the longest rally since April 30, on signs of increasing demand for U.S. supplies as port bottlenecks delay shipments from Brazil, poised to be the biggest exporter this year.
Soybeans for May delivery gained as much as 1.6 percent to $14.945 a bushel on the Chicago Board of Trade and were at $14.94 by 3:59 p.m. Singapore time, on a trading volume that was more than triple the average for that time of day. Futures have climbed 5.6 percent this week.
Corn for delivery in May added 0.3 percent to $6.875 a bushel in Chicago, paring the weekly loss to 1.4 percent. Wheat for May rose 0.2 percent to $7.2575 a bushel, paring the weekly loss for the most-active contract to 3 percent, the biggest such decline since Jan. 4.
Rubber tumbled the most this week in nine months amid concern demand may slow as China, the biggest user, called for property curbs and as European data signaled the region’s recession is worsening.
The contract for July delivery dropped 0.1 percent to end at 297.1 yen a kilogram ($3,184 a metric ton) on the Tokyo Commodity Exchange, the lowest settlement price for the most- active contract since Dec. 26. Futures fell 7.6 percent this week, the most since the week ended May 11.
Palm oil advanced, poised for a weekly gain, on speculation that demand for the world’s most used cooking oil may increase after soybeans, crushed to make a competing product, rallied to a two-week high.
The contract for delivery in May advanced as much as 0.8 percent to 2,555 ringgit ($824) a metric ton on the Malaysia Derivatives Exchange, and was at 2,541 ringgit at 3:27 p.m. in Kuala Lumpur. Futures are set to gain 2.4 percent this week.
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