GLOBAL MARKETS: Stocks struggle as U.S. deadlock remains; euro dips
HONG KONG, July 29 (Reuters) - Asian stocks struggled and the dollar wavered on Friday as U.S. lawmakers squabbled over a compromise to avoid an unprecedented debt default, while growing worries about Europe's debt crisis weighed on the euro, adding to investor wariness.
With just a few days to go before U.S. lawmakers must lift the country's $14.3 trillion borrowing ceiling by an Aug. 2 deadline or risk a default and possible downgrade of its prized AAA credit rating, investors lost appetite for risky assets before the weekend.
OIL: Oil edges up on storm, but debt woes curb gains
NEW YORK, July 28 (Reuters) - Oil edged up on Thursday as a tropical storm heading toward the Texas coast forced producers in the Gulf of Mexico to begin shutting in production and evacuating support staff.
"The storm is expected to have limited effect and concerns over the economy are keeping prices in check," said John Kilduff, partner at Again Capital LLC in New York.
Exxon, Shell use soaring profits to buy output growth
LONDON, Jul 28 (Reuters) - Exxon Mobil, Royal Dutch Shell Plc and other big oil groups reported higher profits on Thursday thanks to high crude prices and showed the only way to combat falling output was by reinvesting the cash in acquisitions and new ventures.
Investors have become increasingly worried in recent years about Western oil companies' inability to match natural field decline with new finds, in part because they are shut out of investing in the richest fields by countries such as Saudi Arabia and Russia.
NATURAL GAS: Natural gas ends down nearly 2 pct after bearish EIA
NEW YORK, July 28 (Reuters) - U.S. natural gas futures ended down sharply on Thursday, pressured by a government report showing a weekly inventory build slightly above market expectations despite a storm in the Gulf of Mexico that has disrupted some gas supplies.
"We had a brutally hot week last week, and that's as good as it gets. It shows how bearish the fundamentals are, and when the heat finally breaks, we're going to be putting a lot of gas in the ground," a Massachusetts-based trader said.
EURO COAL: Steadies on strong oil, SAfrica strike
LONDON, July 28 (Reuters) - Prompt physical coal prices moved slightly higher by 25-75 cents a tonne on Thursday, buoyed by stronger oil prices and the ongoing South African miners' strike, despite a lack of buying interest in the Atlantic and Pacific.
"There's minimal activity and prices have hardly moved during the past week, it's simply very quiet and that's not untypical for the summer," one major European utility source said.
COMMODITIES: Prices drop in thin trade; CRB down most in 10 days
NEW YORK, July 28 (Reuters) - Commodity prices posted their steepest drop in more than a week on Thursday as fear of a U.S. credit downgrade made investors averse to buying futures contracts in energy, metals and crops.
"We are now starting to see markets beginning to seize up in light of the dangerous game of 'chicken' being played by the politicians in Washington," said Edward Meir, energy and metals analyst at broker MF Global in New York.
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