U.S. Commodities: Crude Oil Tumbles as Fuel Inventories Climb
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By Mark Shenk
Dec. 24 (Bloomberg) -- Crude-oil prices fell after a government report showed a bigger-than-expected increase in U.S. supplies of gasoline and distillate fuel, which includes heating oil and diesel.
Gasoline inventories rose 3.34 million barrels to 207.3 million barrels last week, the Energy Department said today in a report. Stockpiles were forecast to increase by 750,000 barrels, according to a Bloomberg News survey. Distillate stockpiles climbed 1.81 million barrels to 135.3 million barrels.
“Crude oil is set to continue on its downward spiral through the end of the year,” said John Kilduff, a senior vice president of risk management at MF Global Inc. in New York. “The build in gasoline supplies will put further pressure on the market.”
In other markets, gold prices rose on speculation the recession will deepen, boosting the appeal of the precious metal as a haven. Corn and soybeans also climbed. The UBS Bloomberg Constant Maturity Commodity Index dropped 1.5 percent to 800.19.
Crude-oil futures for February delivery fell $3.63, or 9.3 percent, to $35.35 a barrel on the New York Mercantile Exchange. The price has plunged 76 percent from a record $147.27 on July 11.
“We will probably test $35 and $30 before year’s end as traders square their books,” Kilduff said. “We can expect prices to rebound next year.”
Gold
Gold is poised for an eighth-straight annual gain, while the Standard & Poor’s 500 Index is down 41 percent. The number of Americans filing first-time claims for unemployment insurance last week rose to a 26-year high, the government said today. Personal spending slumped 0.6 percent last month from October, while durable-goods orders fell 1 percent.
“Gold is being supported because there’s still a significant amount of fear out there,” said Leonard Kaplan, the president of Prospector Asset Management in Evanston, Illinois. “That’s driving purchases.”
Gold futures for February delivery climbed $9.90, or 1.2 percent, to $848 an ounce on the Comex division of the Nymex. The metal is up 1.2 percent this year.
Corn, Soybeans
Soybeans rose to a five-week high and corn gained for the third straight day as dry weather threatens yields in Brazil and Argentina, the world’s biggest exporters of the crops after the U.S.
Argentina will be dry for the next week with higher-than- normal temperatures in some areas, DTN Meteorlogix LLC said in a report. After some light showers tomorrow, southern Brazil is facing similar conditions, stunting development of newly planted crops, Meteorlogix said.
“As long as it’s a dry forecast in South America, the markets are going to remain well supported,” said Dale Schultz, a commodity specialist for Gottsch Enterprise, a cattle and hog feeder in Hastings, Nebraska. “U.S. farmers are not in a hurry to sell with the weather threatening production in Brazil and Argentina.”
Soybean futures for March delivery rose 14 cents, or 1.6 percent, to $9.19 a bushel on the Chicago Board of Trade. Earlier, the price reached $9.2025, the highest since Nov. 19. Soybeans still are down 44 percent from a record $16.3675 on July 3.
Corn futures for December delivery climbed 3.25 cents, or 0.8 percent, to $3.98 a bushel. The price has gained 4.5 percent this week. Still, corn has dropped 50 percent from the all-time high of $7.9925 on June 27.
Commodities settled as follows:
Precious metals: February gold up $9.90 to $848 an ounce March silver up 9 cents to $10.35 an ounce April platinum up $12.90 to $863.40 an ounce March palladium up 20 cents to $174.90 an ounce
Livestock: February live cattle up 1.375 cents to 88.325 cents a pound March feeder cattle up 1.175 cents to 94.55 cents a pound February lean hogs down 0.35 cent to 60.85 cents a pound February pork bellies up 0.9 cent to 89.6 cents a pound
Grains: March soybeans up 14 cents to $9.19 a bushel March corn up 3.25 cents to $3.98 a bushel March wheat up 7 cents to $5.8225 a bushel March oats up 3.75 cents to $2.1875 a bushel
Food and Fiber: March coffee up 0.6 cent to $1.0805 a pound March cocoa down $25 to $2,626 a metric ton March cotton up 0.34 cent to 46.36 cents a pound March sugar up 0.17 cent to 11.02 cents a pound March orange juice down 0.45 cent to $0.72950 a pound
Energy: February crude oil down $3.63 to $35.35 a barrel January natural gas up 17.3 cents to $5.91 per million British thermal units January heating oil down 12.87 cents to $1.1983 a gallon January gasoline down 6.33 cents to 79.27 a gallon
Others: March copper down 0.7 cent to $1.274 a pound March lumber down 20 cents to $191.90 per 1,000 board feet
To contact the reporter on this story: Mark Shenk in New York at [email protected].
Last Updated: December 24, 2008 15:56 EST
Email | Print | A A A
By Mark Shenk
Dec. 24 (Bloomberg) -- Crude-oil prices fell after a government report showed a bigger-than-expected increase in U.S. supplies of gasoline and distillate fuel, which includes heating oil and diesel.
Gasoline inventories rose 3.34 million barrels to 207.3 million barrels last week, the Energy Department said today in a report. Stockpiles were forecast to increase by 750,000 barrels, according to a Bloomberg News survey. Distillate stockpiles climbed 1.81 million barrels to 135.3 million barrels.
“Crude oil is set to continue on its downward spiral through the end of the year,” said John Kilduff, a senior vice president of risk management at MF Global Inc. in New York. “The build in gasoline supplies will put further pressure on the market.”
In other markets, gold prices rose on speculation the recession will deepen, boosting the appeal of the precious metal as a haven. Corn and soybeans also climbed. The UBS Bloomberg Constant Maturity Commodity Index dropped 1.5 percent to 800.19.
Crude-oil futures for February delivery fell $3.63, or 9.3 percent, to $35.35 a barrel on the New York Mercantile Exchange. The price has plunged 76 percent from a record $147.27 on July 11.
“We will probably test $35 and $30 before year’s end as traders square their books,” Kilduff said. “We can expect prices to rebound next year.”
Gold
Gold is poised for an eighth-straight annual gain, while the Standard & Poor’s 500 Index is down 41 percent. The number of Americans filing first-time claims for unemployment insurance last week rose to a 26-year high, the government said today. Personal spending slumped 0.6 percent last month from October, while durable-goods orders fell 1 percent.
“Gold is being supported because there’s still a significant amount of fear out there,” said Leonard Kaplan, the president of Prospector Asset Management in Evanston, Illinois. “That’s driving purchases.”
Gold futures for February delivery climbed $9.90, or 1.2 percent, to $848 an ounce on the Comex division of the Nymex. The metal is up 1.2 percent this year.
Corn, Soybeans
Soybeans rose to a five-week high and corn gained for the third straight day as dry weather threatens yields in Brazil and Argentina, the world’s biggest exporters of the crops after the U.S.
Argentina will be dry for the next week with higher-than- normal temperatures in some areas, DTN Meteorlogix LLC said in a report. After some light showers tomorrow, southern Brazil is facing similar conditions, stunting development of newly planted crops, Meteorlogix said.
“As long as it’s a dry forecast in South America, the markets are going to remain well supported,” said Dale Schultz, a commodity specialist for Gottsch Enterprise, a cattle and hog feeder in Hastings, Nebraska. “U.S. farmers are not in a hurry to sell with the weather threatening production in Brazil and Argentina.”
Soybean futures for March delivery rose 14 cents, or 1.6 percent, to $9.19 a bushel on the Chicago Board of Trade. Earlier, the price reached $9.2025, the highest since Nov. 19. Soybeans still are down 44 percent from a record $16.3675 on July 3.
Corn futures for December delivery climbed 3.25 cents, or 0.8 percent, to $3.98 a bushel. The price has gained 4.5 percent this week. Still, corn has dropped 50 percent from the all-time high of $7.9925 on June 27.
Commodities settled as follows:
Precious metals: February gold up $9.90 to $848 an ounce March silver up 9 cents to $10.35 an ounce April platinum up $12.90 to $863.40 an ounce March palladium up 20 cents to $174.90 an ounce
Livestock: February live cattle up 1.375 cents to 88.325 cents a pound March feeder cattle up 1.175 cents to 94.55 cents a pound February lean hogs down 0.35 cent to 60.85 cents a pound February pork bellies up 0.9 cent to 89.6 cents a pound
Grains: March soybeans up 14 cents to $9.19 a bushel March corn up 3.25 cents to $3.98 a bushel March wheat up 7 cents to $5.8225 a bushel March oats up 3.75 cents to $2.1875 a bushel
Food and Fiber: March coffee up 0.6 cent to $1.0805 a pound March cocoa down $25 to $2,626 a metric ton March cotton up 0.34 cent to 46.36 cents a pound March sugar up 0.17 cent to 11.02 cents a pound March orange juice down 0.45 cent to $0.72950 a pound
Energy: February crude oil down $3.63 to $35.35 a barrel January natural gas up 17.3 cents to $5.91 per million British thermal units January heating oil down 12.87 cents to $1.1983 a gallon January gasoline down 6.33 cents to 79.27 a gallon
Others: March copper down 0.7 cent to $1.274 a pound March lumber down 20 cents to $191.90 per 1,000 board feet
To contact the reporter on this story: Mark Shenk in New York at [email protected].
Last Updated: December 24, 2008 15:56 EST
