* $12.4 bln to be moved around in SPGSCI, DJ-UBS rebalancing * Brent to see $2.7 bln in new buying; WTI to lose $2.8 bln * Gold to get $1.1 bln more; natgas $1.4 bln less * Reweightings to start Wed and occur over 5-business day cycle By Barani Krishnan NEW YORK, Jan 8 Brent crude oil will see nearly $3 billion in fresh buying and gold more than $1 billion from the annual rebalancing of the world's two largest commodity indexes beginning Wednesday, a spokesperson for the indexes said. Allocations toward U.S. crude oil will fall almost $3 billion while natural gas takes a cut of nearly $1.5 billion under the changes to occur over five business days at the Standard & Poors Goldman Sachs Commodity Index and the Dow Jones-UBS Commodity Index. The rebalancing of the two indexes, which have an estimated $155 billion in all tracking them and are run by S&P Dow Jones Indices, is a yearly ritual meant to add or trim allocations to commodities based on global production and liquidity data. "Approximately $12.4 billion is set to move over (in) the 2014 rebalancing period starting today," Jodie Gunzberg, vice president for commodity indices at S&P Dow Jones Indices, said in an email. Gunzberg said Brent will see nearly $2.7 billion in additional index buying from the rebalancing while U.S. oil's West Texas Intermediate (WTI) crude will lose about $2.8 billion. The projections are based on numbers compiled in December, 2012. Estimated allocations could change based on whether investors add money to commodity funds or pull money out. Brent, which closed flat in 2013, will see a cumulative rise of 1.7 percent in the SPGSCI and DJ-UBS weightings for 2014. Brent prices have fallen nearly 3 percent since the start of this year, and were up a modest 0.2 percent at $107.57 a barrel in Wednesday's trading. WTI, which closed up 7 percent last year, will have a 1.8 percent cut in the new weightings of the two indexes. WTI prices have fallen nearly 6 percent since the start of the year, losing 0.8 percent on Wednesday to stand at below $92.95 a barrel. Gunzberg said the higher weighting for Brent was influenced by production data for the U.K., North Sea-based crude which had grown more dramatically than WTI's over the past 5 years. Brent replaced WTI as the global benchmark for crude in 2011 after increased logistical problems in getting U.S. oil supplies transported from their hub in Cushing, Oklahoma. Gunzberg estimated that from the 2011 rebalance through to this year, about $23.4 billion would have left WTI, and about $21.2 billion of that would have gone into Brent. Gold will see a total rise of 0.7 percent in 2014 weightings that would shift an additional $1.1 billion toward the precious metal. "In gold's case, the increased weighting was driven by liquidity, as most of the available gold in the world is above ground anyway, compared to the new production coming out from mines," Gunzberg said in an interview with Reuters. Gold had seen huge growth in trading over the last five years as many turned it as a safe-haven from the financial crisis and protection against potential inflation from the U.S. Federal Reserve's monetary expansion activities. Gold had an unbroken 12-year rally, reaching record highs above $1,900 an ounce in 2011, before it fell nearly 30 percent in 2013 after the Fed began tightening its long-running stimulus. This year so far, gold has rebounded 1.4 percent. On Wednesday, it was down 0.8 percent at $1,222,21 an ounce. For natural gas, weightings would fall a cumulative 0.9 percent, taking an estimated $1.44 billion from the market. Natural gas prices surged 26 percent in 2013, in a rally late in the year driven by bitter cold weather and signs that production may be tapering. Since the start of this year, gas has risen about half a percent on extended chilly weather, and was down 1.2 percent at $4.247 per million British thermal units in Wednesday's session. Prices at 1:33 p.m. EST (1833 GMT) LAST NET PCT YTD CHG CHG CHG US crude 92.81 -0.86 -0.9% 1.1% Brent crude 107.32 -0.03 0.0% -3.4% Natural gas 4.250 -0.049 -1.1% 26.8% US gold 1226.20 -4.00 -0.3% -26.8% Gold 1225.50 -5.99 -0.5% -26.8% US Copper 3.40 -0.02 -0.5% -6.8% LME Copper 7323.50 -27.50 -0.4% -7.7% Dollar 81.087 0.254 0.3% 5.6% CRB 275.421 -1.405 -0.5% -6.6% US corn 417.75 -8.25 -1.9% -40.2% US soybeans 1300.00 0.50 0.0% -8.4% US wheat 591.50 -11.00 -1.8% -24.0% US Coffee 120.80 3.55 3.0% -16.0% US Cocoa 2705.00 30.00 1.1% 21.0% US Sugar 15.75 -0.31 -1.9% -19.3% US silver 19.525 -0.003 -1.3% -35.4% US platinum 1405.10 -0.50 0.0% -8.7% US palladium 737.20 -4.50 -0.6% 4.8%
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