Oil Heads for Weekly Gain; Copper Drops: Commodities at Close
Oil headed for its first weekly gain in a month in New York after claims for U.S. jobless benefits dropped to the lowest level in four years and increasing Middle East tensions prompted concern crude supplies may be disrupted.
Crude for November delivery was at $92.05 a barrel in electronic trading on the New York Mercantile Exchange, down 2 cents, at 9:50 a.m. London time. The contract yesterday climbed 82 cents to $92.07. Prices are up 2.4 percent this week and down 6.9 percent this year.
Oct. 12 (Bloomberg) -- Asia gasoil’s premium to Dubai crude is poised to fall this week by the most since June 2011.
• Middle Distillates • Gasoil crack spread down $1.50 at $17.88/bbl at 10:32 a.m. Singapore time, according to PVM Oil Associates Ltd. • Weekly drop of 13% is the most since June 24, 2011, signaling lower profits for refiners making the fuel • Nov. gasoil swaps down 90 cents at $129.25/bbl • Jet fuel regrade down 10 cents at $1.90/bbl
• Fuel Oil • High-sulfur fuel oil’s discount to Dubai crude widens 29 cents to $6.49/bbl, according to PVM. • Fuel oil crack spread increases for a third week • Nov. HSFO swaps up $2 at $666/ton • Viscosity spread unchanged at $12.50/ton
Copper fell in London, wiping out last week’s gain, on concern demand is poised to weaken as world economies slow. Aluminum headed for the largest weekly retreat in almost 11 months.
Copper for delivery in three months slid 0.6 percent to $8,188 a metric ton by 9:35 a.m. on the London Metal Exchange. The contract is down 1.3 percent for the week after rising the most since January last month. Copper for December delivery fell 0.5 percent to $3.733 a pound on the Comex in New York.
Aluminum for delivery in three months on the LME slid 0.2 percent to $2,011 a ton. The lightweight metal has tumbled 4.7 percent this week after China’s slowing economy prompted Alcoa Inc. (AA), the largest U.S. producer, to cut its demand forecast.
Gold was seen advancing for a second day in London, cutting a weekly decline, as a weaker dollar spurs demand for the metal as an alternative investment.
Bullion for immediate delivery rose 0.1 percent to $1,769.25 an ounce by 9:35 a.m. in London. Prices are down 0.6 percent this week. December-delivery futures were little changed at $1,770.90 on the Comex in New York.
GRAINS, OILSEEDS, SOFT COMMODITIES
Corn dropped, paring a weekly increase, on concern that yesterday’s jump to the highest level in more than three weeks will hurt demand for U.S. supplies.
Corn for delivery in December declined as much as 0.7 percent to $7.68 a bushel on the Chicago Board of Trade and was at $7.6875 at 2:48 p.m. in Singapore. Futures closed 5 percent higher at $7.7325 a bushel yesterday after reaching $7.76, the highest price since Sept. 17. The most-active contract is poised to gain 2.8 percent this week.
Wheat for December delivery lost 0.8 percent to $8.7875 a bushel, snapping a four-day rally. Futures rose 1.9 percent yesterday, the most since Sept. 28, and are heading for a 2.5 percent weekly advance. Soybeans for November delivery dropped 1.2 percent to $15.305 a bushel, extending the decline in the most-active contract to 1.4 percent this week.
Rubber declined for the first week in six as concerns deepened that an economic slowdown in China, the world’s largest consumer, will weaken demand for the commodity used in tires.
Rubber for March delivery lost 0.6 percent to settle at 264.5 yen a kilogram ($3,372 a metric ton) on the Tokyo Commodity Exchange. The most-active contract fell 2 percent this week, the first since the five days ended Aug. 31.
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