Oil : Oil on the rise as Middle East, North Africa tensions hot up
SINGAPORE, March 3 (Reuters) - Oil rose on Thursday as investors eyed growing instability in key Middle East oil producing countries, which could signal another threat to global supplies, after Libya's Muammar Gaddafi ordered airstrikes near Libyan oil facilities.
"The stability of the region has gone through a major shock and the ripples are going to be felt for a while," said Carl Larry, president of Oil Outlooks and Opinions based in Houston.
COMMODITIES: Oil jumps to 2008 highs on supply threat; lifts gold
NEW YORK, March 2 (Reuters) - Brent and U.S. crude oil settled Wednesday at highs unseen since 2008, when an airstrike near Libya's oil terminal stoked fears of prolonged threats to oil supplies and pushed gold to record levels for a second day.
"It's hard to say if the Libyan government is trying to target oil infrastructure in the east or whether they're just targeting rebel-held areas, but the market's reacting to this threat either way," said Andy Lebow, trader at MF Global in New York.
GLOBAL MARKETS: Oil, gold jump on Libyan fighting, stocks retreat
NEW YORK, March 2 (Reuters) - Brent crude oil shot above $117 a barrel on Wednesday on news of an airstrike in Libya near an oil terminal, while gold hit a record high as investors rushed into a safe-haven trade.
"If it continues to spread, Middle East tensions may reach a point where a war could start and that could ignite an incredible rally" in oil prices, said Ryoma Furumi, a commodities sales manager at Newedge Japan.
Libya says $130 oil possible
TRIPOLI, March 2 (Reuters) - Further disruptions of Libyan oil supplies to world markets could push crude prices above $130 a barrel in the next month, the country's top oil official told Reuters on Wednesday.
Brent crude rose back close to two-and-a-half year highs on Wednesday as Libya issued its warning and its government forces fought rebels in the oil-rich east.
US manufacturing strongest in nearly 7 years
NEW YORK, March 1 (Reuters) - U.S. manufacturing grew in February at its fastest rate in nearly seven years as companies' willingness to hire improved at the strongest pace in decades.
Prices paid, a gauge of inflation, also rose, though slightly less than expected, according to an industry report released on Tuesday. The manufacturing data echoed reports around the world as factory input costs rose, while euro zone and British manufacturing grew strongly.
US Feb auto sales jump 27 pct, top expectations
DETROIT, March 1 (Reuters) - U.S. auto sales surged by 27 percent in February, exceeding the most bullish analyst forecasts as the lure of discounts from automakers led by General Motors Co outweighed concerns about higher oil prices for car shoppers.
The February sales tally, which represents one of the first snapshots of U.S. consumer demand, was the strongest since August 2009 when the government's "cash for clunkers" credits spurred a short-lived boom at dealerships.
China aims to settle nationwide trade in yuan by 2011
BEIJING, March 2 (Reuters) - China hopes to allow all exporters and importers to settle their cross-border trades in the yuan by this year, the central bank said on Wednesday, as part of plans to grow the currency's international role.
In a statement on its website www.pbc.gov.cn, the central bank said it would respond to overseas demand for the yuan to be used as a reserve currency. It added it would also allow the yuan to flow back into China more easily.
Euro zone PPI sees record monthly rise in Jan
BRUSSELS, March 2 (Reuters) - Euro zone producer prices rose in January at the highest rate in the history of the single currency, data showed on Wednesday, further testing the inflation-fighting credentials of the European Central Bank.
The European Union's statistics office Eurostat said prices at factory gates in the 17 countries using the euro rose 1.5 percent month-on-month in January for a 6.1 percent year-on-year rise. The latter figure was the highest since September 2008.
PRECIOUS-Gold holds near record as Mideast simmers
LONDON, March 2 (Reuters) - Gold prices held just below the previous session's record high in Europe on Wednesday, as the threat that violence in the Middle East and North Africa will spread supported interest in the metal as a haven from risk.
While the precious metal's rally lost momentum as some investors cashed in the previous session's gains, fresh unrest in the region is likely to reignite its run higher, analysts said.
FOREX-Euro up; faltering risk appetite supports dollar
LONDON, March 2 (Reuters) - The euro inched up on Wednesday, driven by expectations of higher official rates, although subdued risk appetite is likely to put a lid on gains and keep the dollar off a 3-1/2 month low versus a basket of currencies.
European Central Bank policymakers meet on Thursday, and with euro zone inflation well above its target, markets see the central bank sharpening its anti-inflation rhetoric.
Wheat falls for 2nd day on crop weather, soy firm
SINGAPORE, March 2 (Reuters) - U.S. wheat futures lost more ground falling around half a percent as rains in China's wheat belt and forecasts for much-needed moisture in the U.S. Plains continued to weigh on the market. "But there is still some concern around hard red winter wheat, which is in need of rains. They have had lower-than-average rains so far this year and conditions aren't looking good."
Stocks fall, oil rises on Middle East fears
LONDON, March 2 (Reuters) - World stocks fell while the safe-haven Swiss franc and government bonds rose as concerns grew that a rise in oil prices due to unrest in the Middle East would weigh on the global economic recovery. "If crude prices are going to go up to $125 to $130 a barrel then I think that more and more of the consumption expenditure in the U.S. is going to have to be spent on gasoline and can't be spent on other durable goods," said Koen de Leus, strategist at KBC Securities Bolero in Brussels.
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