Tuesday, June 12, 2012
Crude Oil Recovers, Gold Jumps For 3rd Session (USo, UNG, GLD, SLV, STO, APL, BP, NKA, EXLP)
Commodities recovered on Tuesday after early weakness as U.S. markets jumped on speculation central bankers would make further moves to stimulate the global economy and as Wall Street tracked events in Europe.
On Monday, most of the commodities ended sharply lower after soaring in the morning session. July futures for light, sweet crude-oil was up +0.87% to $83.40 a barrel on Globex, although they recovered some ground after falling as low as $81.14 earlier in the session. Among other products in the energy complex, July futures for heating were flat and gasoline fell -0.13% to $2.65 per gallon and to $2.65 per gallon, respectively. Natural-gas futures due for delivery next month rose +0.99% to $2.24 per million British thermal units.
The retreat came as optimism over Spain’s agreement to seek a European Union bailout of its banks gave way to uncertainty about the euro zone’s financial troubles ahead of this weekend’s elections in Greece, which could potentially lead to the country’s exit from the common currency bloc.
The ICE dollar index, which measures the greenback’s performance against a basket of six major currencies, fell to 82.62, compared with 82.529 in North American trade Monday. Dow Jones Industrial Average added +0.74% to 12,502.58.
Gold for August added +0.83% delivery rose $13.60 or 0.85% at $1,610.30 an ounce on the Comex division of the New York Stock Exchange. Prices have already tallied a gain of $8.80, or 0.5%, over the past two sessions. Silver for July rose +0.73% to $28.84 an ounce after surging 0.5% climb in the previous session.
Rounding out action among the major metals Tuesday, July was almost flat at $3.34 a pound. July platinum fell -0.39% traded at $1,443 an ounce, down $5.60, or 0.4%, while September palladium lost $6.60, or 1.1%, to $618.55 an ounce.
United States Oil Fund LP (ETF)(NYSEARCA:USO) was p 0.82 (2.67%) at $31.54, SPDR Gold Trust (ETF)(NYSEARCA:GLD) rose 1.03 (0.66%) to $156.39, iShares Silver Trust (ETF)(NYSEARCA:SLV) surged 0.28 (1.01%) to $28.07 and United States Natural Gas Fund, LP(NYSEARCA:UNG) climbed 0.25 (1.63%) to $15.59.
Statoil ASA(ADR)(NYSE:STO) jumped 1.65% to $22.85 after the company signs a deal to buy a floating production, storage and offloading unit from Maersk for an undisclosed figure. The unit has been used at the STO-operated Peregrino field offshore Brazil since production start-up in 2011; Peregrino has a storage capacity of 1.6M bbls of oil and produced at least 15M bbls during its first year of operation.
Atlas Pipeline Partners, L.P.(NYSE:APL) added 4.71% r on news that the partnership will be added to the Alerian MLP Index following the close of business on June 15; Alliance Holdings (AHGP), Niska Gas Storage Partners (NKA) and Exterran Partners (EXLP ) will be removed.
BP plc (ADR)(NYSE:BP) climbed 2% as the company launches production from the three-field Galapagos development in the deepwater Gulf of Mexico, one of six high-margin projects BP expects to come on stream this year in the Gulf. Production is set to ramp up later this month from the Na Kika host platform, which has output capacity of 130K boe/day and has been modified to handle output from the three fields