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Oil, Gold Gain on Japanese Stimulus Plans: Commodities at Close

Sept. 19 (Bloomberg) -- The Standard & Poor’s GSCI gauge of 24 commodities rose 0.2 percent to 671.62 at 5:34 p.m. Singapore time. The UBS Bloomberg CMCI index of 26 raw materials gained 0.4 percent to 1,638.238.

CRUDE OIL

Oil rebounded from the lowest close in more than two weeks in New York amid speculation that Japan’s expanded program of monetary easing may bolster fuel demand in the world’s third-biggest crude user.

Oil for October delivery gained as much as 88 cents to $96.17 a barrel in electronic trading on the New York Mercantile Exchange and was at $95.98 at 9:07 a.m. London time. The contract slid $1.33 yesterday to $95.29, the lowest close since Aug. 30, and has dropped 4.4 percent since this month’s intraday high of $100.42 on Sept. 14. The October contract expires tomorrow. The more-active November future was at $96.37 a barrel, up 75 cents.

OIL PRODUCTS

Gasoil’s premium to Dubai crude rose $1.12, or 5.6 percent, to $21.27 a barrel at 10:17 a.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. This crack spread, a measure of the profit from making the fuel, is at the widest since June 16, 2011. Gasoil swaps for October fell 70 cents, or 0.5 percent, to $130.15 a barrel, PVM data showed.

High-sulfur fuel oil’s discount to Dubai crude narrowed 56 cents to $2.78 a barrel, PVM data showed. The discount is the smallest since Aug. 30, signaling refining losses from the fuel have declined. Fuel-oil swaps for October dropped $8, or 1.2 percent, to $673.75 a ton, according to PVM data.

BASE METALS

Copper gained for a second day in London after Japan’s central bank expanded its asset-purchase program to fuel growth in the world’s fourth-biggest consumer of the metal.

The Bank of Japan increased an asset-purchase fund to 55 trillion yen ($697 billion), according to a statement today. The Federal Reserve and the European Central Bank also unveiled stimulus plans this month aimed at stoking economies. Copper also climbed as inventories tracked by the London Metal Exchange reached the lowest level since October 2008.

Copper for delivery in three months rose 0.9 percent to $8,392 a metric ton by 9:13 a.m. on the LME. Prices reached $8,422, the highest level since May 2. Copper for December delivery advanced 1 percent to $3.825 a pound on the Comex in New York.

Aluminum for delivery in three months on the LME rose 0.7 percent to $2,176 a ton. The fee investors pay to borrow the lightweight metal for a day reached $40 a ton yesterday, the highest level since Nov. 7, 2006. It was at $9 today.

PRECIOUS METALS

Gold climbed to a six-month high in London on speculation central banks’ moves to bolster growth will spur demand for the metal as a protection of wealth.

Immediate-delivery bullion rose 0.2 percent to $1,774.57 an ounce by 9:33 a.m. in London. Prices reached $1,779.50, the highest since Feb. 29. December-delivery futures were up 0.4 percent at $1,777.10 on the Comex in New York.

Silver for immediate delivery was little changed at $34.82 an ounce after reaching $35.02 yesterday, the highest since March 2. Palladium gained 1.2 percent to $674.45 an ounce. Platinum was 0.6 percent higher at $1,642 an ounce. Holdings of the metal in ETPs rose to a record 46.7 tons yesterday, data compiled by Bloomberg show.

GRAINS, OILSEEDS, SOFT COMMODITIES

Soybeans, corn and wheat climbed on speculation the slump in prices this week may attract importers and investors amid declining global supplies.

November-delivery soybeans rallied as much as 1.6 percent to $16.665 a bushel on the Chicago Board of Trade, and were at $16.62 at 2:39 p.m. Singapore time. Futures fell 6.1 percent in the three days to yesterday.

Corn for December delivery rose 0.4 percent to $7.4275 a bushel in Chicago, after slipping 5.4 percent in the past two days. Wheat for December delivery climbed 0.8 percent to $8.7025 a bushel, after losing 6.6 percent in the past two days.

Rubber gained for a third day to the highest level in more than three months after the Bank of Japan joined moves by the Federal Reserve last week to stimulate economic growth, raising optimism demand will expand.

The February-delivery contract rose 1.5 percent to end at 260 yen a kilogram ($3,329 a metric ton), the highest settlement level since May 31, on the Tokyo Commodity Exchange. Futures pared this year’s drop to 1.3 percent.

Palm oil gained after the steepest drop in 19 months yesterday boosted demand as countries sought to build stockpiles amid dwindling global oilseed supplies.

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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