GLOBAL MARKETS: Commods dive, pulling stocks down; dollar jumps
NEW YORK, May 3 (Reuters) - Commodities suffered their biggest one-day loss in two weeks on Tuesday, pulling stocks on Wall Street down as well, after fear that huge price gains last month had made everything from oil to silver too costly.
"You've had a tremendous run-up here, so you've got some profit-taking and an underlying rotation" out of commodity shares into more defensive sectors, said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.
OIL: Oil falls as India, dollar spark sell-off
NEW YORK, May 3 (Reuters) - Oil prices dropped more than 2 percent on Tuesday as an interest rate increase by India added to concerns about demand and gains in the dollar helped spark a technical sell-off.
"The slide in oil has come in response to equities losses and the dollar entering positive territory," said Matt Smith of Summit Energy in Louisville, Kentucky.
100 yrs after boom, shale makes Texas oil hot again
NEW YORK, May 3 (Reuters) - A century after a gusher at the Spindletop field in Beaumont, Texas, ushered in the first U.S. oil boom, a quieter oil craze is underway 300 miles west in a chain of counties more famous for cattle than crude.
Over the past two years, some 30 companies have moved in to a shale prospect in South Texas called the Eagle Ford that could add 420,000 barrels per day (bpd) to U.S. crude oil production, nearly matching the output of OPEC member Ecuador.
NATURAL GAS: NYMEX natgas futures open interest hits record high
NEW YORK, May 3 (Reuters) - Natural gas futures open interest hit a record high this week as prices crept higher, backed by a firm physical market and some new buying as sentiment gradually grew more bullish.
Open interest (OI), or the number of longs or shorts outstanding, in New York Mercantile Exchange natural gas futures hit a record high 992,434 on Monday, easily eclipsing the previous benchmark high of 983,802 set on April 18, 2011.
EURO COAL: DES ARA Jly trades at $127.75, down $1.00
LONDON, May 3 (Reuters) - Prompt European delivered physical coal fell by around $1.00 a tonne on Tuesday after a fall across most commodity and energy prices.
"We're seeing a lot more enquiry from China for all grades of Indonesian coal," one trader said.
COMMODITIES: Copper rises, bucks trend as silver slumps
NEW YORK, May 3 (Reuters) - Copper futures rose on Tuesday, bucking the weak trend in commodities after U.S. data showed strong factory orders, while silver fell on heavy speculative selling that sent it to its biggest two-day loss since 1987
"I think that economic news is helping copper and base metals," said Justin Lennon, analyst with Mitsui Bussan Commodities in New York.
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