Monday, June 27, 2011

20110627 1321 Global Market & Commodities Related News.

GLOBAL MARKETS: Dollar gains, stocks slip, Greece the biggest risk
SINGAPORE, June 27 (Reuters) - The U.S. dollar rose and Asian equities slipped on Monday, with investors positioning their portfolios ahead of a Greek vote on unpopular fiscal austerity measures this week and a gauge of U.S. factory activity that is expected to show slowing growth.
"A 'No' would block the much needed next tranche of the EU/IMF loan of 12 billion euros, leaving big question marks as to how Greece would fund coupon payments and bond redemptions in July and August," Societe Generale economists said in a note.

OIL: Brent falls as euro zone woes, dollar pressure
NEW YORK, June 24 (Reuters) - Brent crude prices fell 2 percent on Friday as Europe's debt problems and a dollar index rebound extended oil's decline a day after consuming nations announced they were tapping strategic reserves.
"The strengthening of the dollar index is helping pressure oil and we're seeing an unwinding of the Brent-WTI spread because of the release of the strategic reserves," said Phil Flynn, analyst at PFGBest Research in Chicago.

Gulf oil output unlikely to fall on IEA move-delegates
RIYADH, June 26 (Reuters) - Gulf oil exporters are unlikely to cut production in response to the International Energy Agency (IEA) releasing emergency stocks because demand for their crude is strong, two Gulf OPEC delegates said on Sunday.
Oil exporters' group OPEC failed in early June to agree an increase in output which Gulf Arab producers and big consumers represented by the IEA hoped would dampen prices and boost growth.

Iran says will oppose rise in OPEC production ceiling
TEHRAN, June 26 (Reuters) - Iran will reject any increase of the OPEC production ceiling in the cartel's next meeting, the country's Oil Ministry caretaker Mohammad Aliabadi told the semi-official Mehr news agency on Sunday.
"Considering the demand and supply situation in the oil market, Iran will reject any increase in the OPEC output ceiling in the next meeting ... OPEC has no intention to increase prices of crude," Aliabadi said.

Obama's oil reserves plan took shape in May-official
WASHINGTON, June 23 (Reuters) - It was on May 2, the day U.S. oil prices peaked at nearly $115 a barrel, that President Barack Obama put into a motion a controversial plan that would lead to the biggest-ever sale of U.S. emergency oil stocks.
Even as oil prices fell from that high, a core team of Obama officials pressed ahead with diplomatic efforts to rally other consuming nations behind a plan they felt would aid to the faltering global economy, while ensuring key OPEC allies were consulted, an administration official told Reuters.

India raises diesel prices to ease subsidy burden
NEW DELHI, June 24 (Reuters) - India raised diesel prices about 9 percent on Friday after months of delay, a politically unpopular move that will add to inflationary pressure but also eases the government's subsidy burden and could bolster its image among wary investors.
"This is the only window they have for any cutting of subsidies. By the end of the year they will be in (state) election mode," political analyst Mahesh Rangarajan said.

NATURAL GAS: Natural gas ends up on tech buying ahead of wkend
NEW YORK, June 24 (Reuters) - U.S. natural gas futures ended higher on Friday for only the second time in two weeks, backed by some pre-weekend technical buying and short covering after Thursday's steep slide despite comfortable supplies.
"There may have been some short covering ahead of the weekend, but the weather looks fairly warm heading into July, which is supportive," a commodity trading advisor said.

EURO COAL: Prices stable, China seeks a few bargains
LONDON, June 24 (Reuters) - Prompt physical coal values remained stable on Friday as the market digested oil's $8 fall a day earlier and concerns grew over the impact of heavy rains on Australian coal exports.
"You can't rule out the effect of fresh supply-side disruptions on prices given what's happened to coal during the past several months and it is raining hard in Australia but it's too early to say whether that's going to hit exports and push up prices," one European trader said.

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