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Oil, Natural Gas Rise; Silver Prices Fall: Commodities at Close

07 Jun 2012

The Standard & Poor’s GSCI gauge of 24 commodities fell 0.3 percent to 591.2 at 5:02 p.m. Singaporetime. The UBS Bloomberg CMCI index of 26 raw materials fell 0.2 percent to 1,435.778.


Oil traded near the highest price in four days in New York as policy makers in the U.S. and Europe indicated they may take steps to boost their economies and Iran signaled it will take a hard line in nuclear talks.

Futures were little changed after rising as much as 0.9 percent. Federal Reserve Vice Chairman Janet Yellen said the U.S. remains vulnerable to setbacks that may warrant additional monetary stimulus, while European Central Bank President Mario Draghi said officials are ready to act as the euro area’s outlook worsens. Oil may rebound on policy measures, according to Goldman Sachs Group Inc. Iran pulled back from an agreement on nuclear inspections before talks this month.

Oil for July delivery was at $84.80 a barrel, down 24 cents, in electronic trading on the New York Mercantile Exchangeat 8:50 a.m. London time. The contract yesterday rose 73 cents to $85.02, the highest close since May 31. Prices are 14 percent lower this year.


Natural gas futures rose after yesterday’s decline on speculation hot weather forecast for the eastern U.S. next week would be followed by below-normal temperatures, crimping fuel demand from electricity generators to run air conditioners.


Singapore gasoil swaps for July rose $1.33, or 1.2 percent, to $113.60 a barrel. The premium of gasoil to Dubai crude fell 10 cents, or 0.6 percent, to $15.82 a barrel. Jet fuel traded at a premium of 75 cents a barrel to gasoil. This spread, also known as the regrade, has narrowed 38 percent from May 31, signaling it is less profitable to make aviation fuel compared with a week earlier.

Naphtha swaps for July rose $11, or 1.4 percent, to $801.25 a ton, PVM data showed. Prices are at the highest since May 31. Japan naphtha’s premium to London-traded Brent crude futures jumped $9.72 to $41.75 a ton, according to data compiled by Bloomberg.

Singapore fuel oil’s discount to Dubai crude, a measure of refining losses from the fuel, shrank 42 cents to $1.56 a barrel at 11:10 a.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker.


Gold gained on speculation Federal Reserve Chairman Ben S. Bernanke will signal that more stimulus is needed, weakening the dollar and increasing demand for alternative investments.

Immediate-delivery gold rose as much as 0.4 percent to $1,626.25 an ounce before trading at $1,621.73 by 2:18 p.m. in Singapore. August-delivery bullion fell for the first day in three on the Comex in New York, dropping as much as 0.9 percent to $1,618.80 an ounce.

It was last at $1,623, after reaching a one-month high of $1,642.40 yesterday. Holdings in the SPDR Gold Trust, the biggest exchange-traded product backed by bullion, increased to 1,274.79 metric tons yesterday, the largest amount since May 21, the company’s website showed.