Tuesday, May 10, 2011

20110510 1237 Global Market & Commodities Related News.

GLOBAL MARKETS: New fears on Greece dent euro; commodities bounce
NEW YORK, May 9 (Reuters) -  New-found worries that Greece may be forced to restructure its debt brought the euro to around a three-week low on Monday, while U.S. stocks rose as  resource shares gained alongside commodities after last week's rout.
The euro volatility "confirms the whole market skittishness about the viability of the peripheral economies," said Boris Schlossberg, head of research at GFT Forex. "More draconian measures will be necessary to stabilize the situation with a broader solution as Ireland and Portugal will want more favorable terms if Greece gets them."

OIL: U.S. crude falls more than 2 pct after margin hike
SINGAPORE, May 10 (Reuters) - U.S. crude oil futures fell more than 2 percent on Tuesday after the CME Group raised margins on benchmark West Texas Intermediate by 25 percent.
The move comes after a volatile, frenzied week of oil trading that saw U.S. crude prices fall from over $114 a barrel -- the highest level since 2008 -- to $94 a barrel.

Fuel cost drop bolsters Mideast crude ship rates
LONDON, May 9 (Reuters) - Crude oil tanker rates were steady on Monday, helped by lower bunker fuel costs although earnings continued to struggle to cover operating costs.
The world's benchmark Very Large Crude Carrier (VLCC) export route from the Middle East Gulf (MEG) to Japan  reached W48.59 in the Worldscale measure of freight rates, or $4,585 a day when translated into average earnings, from W48.62 or $585 a day on Friday and W49.06 or $693 a day last Tuesday.

US crude stocks seen up on higher imports
BANGALORE/NEW YORK, May 9 (Reuters) - U.S. crude oil stockpiles rose last week as higher imports offset refinery demand, a preliminary Reuters poll ahead of weekly industry and government reports showed on Monday.
On average, crude stocks were forecast up 1.3 million barrels in the week to May 6, with eight of nine analysts projecting a rise and one calling for an unchanged reading from the previous week.

NATURAL GAS: Natural gas ends down for sixth straight day
NEW YORK, May 9 (Reuters) - Front-month U.S. natural gas futures ended lower for a sixth straight day on Monday, as bearish technicals after last week's steep slide and mild weather in consuming regions this week weighed on prices.
"There's some decent weather around, and producers still seem like they're pumping. The market is going to struggle until the demand side catches up," said Steve Platt, analyst at Archer Financial, a Chicago-based brokerage firm.

EUROCOAL : Euro Coal-Commodities bounce leaves coal sidelined
LONDON, May 9 (Reuters) - Coal prices largely ignored the rebound in oil and other commodity markets on Monday and ended the day little changed with few trades reported.
"There are few of the usual bigger players in the market today, not many bids or offers around, all the excitement is in the other markets again," one European trader said.

COMMODITIES: Oil, silver snap back from rout, lifting others
NEW YORK, May 9 (Reuters) - Commodity markets roared back to life on Monday, with oil and silver leading the charge as investors bet last week's biggest slump since 2008 was overdone, and a falling dollar adding fuel to the rebound.
"I'm not surprised that we rebounded. It's the velocity of the rebound that caught me by surprise," said Phil Flynn, oil analyst at PFGBest Research in Chicago. "I think the concerns over refinery issues added to the frenzy, on top of the dollar/euro type of play, that has been the main driver."

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