Monday, September 12, 2011

20110912 1501 Global Market & Commodities Related News.

GLOBAL MARKETS-Asian stock fall, dollar firm on Europe woes
SINGAPORE, Sept 12 (Reuters) - Asian stocks fell and the euro remained under pressure on Monday after the resignation of a top German European Central Bank board member cast further doubt on Europe's ability to tackle its worsening sovereign debt crisis.
"People are quite nervous about Greece and other countries in the European area, so that is why investors are escaping to the dollar," said Tetsu Emori, a fund manager at Tokyo-based Astmax Co Ltd. "It's risk aversion."

Japan’s Nikkei 225 Falls to Lowest Since 2009 on Greece Default Concern (Bloomberg)
Japanese stocks fell for a second day, with the Nikkei 225 (NKY) Stock Average dropping to its lowest in almost two and a half years, as exporters and banks tumbled amid speculation Greece may be nearing default. Sony Corp. (6758), which gets 21 percent of its sales in Europe, fell 3.4 percent as the yen’s advance to a 10-year high against the euro dimmed the earnings outlook. Mitsubishi UFJ Financial Group Inc. (8306), Japan’s biggest lender by market value, declined 2.7 percent on concern Europe’s debt crisis will hurt the global financial system. Sharp Corp. plunged 5 percent after Mizuho Securities Co. cut its target price on the maker of flat screens. The Nikkei 225 fell 2.3 percent to 8,535.67 in Tokyo, the lowest close since April 2009. The broader Topix slid 1.9 percent to 741.26 as speculation Germany is preparing for a Greek default spurred turmoil in equity markets worldwide.

Oil falls $1 as dollar gains, investors shun risk
SINGAPORE, Sept 12 (Reuters) - Oil fell by more than $1 on Monday with a stronger dollar as investors shunned commodity risk because of Europe's deepening sovereign debt crisis, while economic gloom dampened the outlook for energy use.
"People are quite nervous about Greece and other countries in the European area, so that is why investors are escaping to the dollar," said Tetsu Emori, a fund manager at Tokyo-based Astmax Co Ltd. "It's risk aversion."  

Oil production restarts in Libya - interim PM
TRIPOLI, Sept 11 (Reuters) - Libya has started producing oil again, the country's interim prime minister said on Sunday, promising that more of it would come online in the "near future".    
"We started producing oil yesterday," Mahmoud Jibril told a news conference in Tripoli. He declined to say where or how much.

Iraq oil min sees no problem with Shell gas deal
AMMAN, Sept 11 (Reuters) - Iraq's oil minister said on Sunday he saw no problem with the long-awaited $17 billion gas deal with Royal Dutch Shell  after the country's top energy committee sent the final draft agreement to the cabinet for approval.
Iraq's state-run South Gas Co (SGC) in July, in what was hailed as a breakthrough, initialled a final draft agreement with Shell and Japanese group Mitsubishi  to capture associated gas flared at three major southern oilfields.

Iraq oil minister sees lower output target
AMMAN, Sept 11 (Reuters) - Iraq's oil minister said on Sunday a production capacity target of 8.0-8.5 million barrel per day for contracts signed with international oil companies was "more suitable" than the current plateau target of 12 million bpd.
Abdul-Kareem Luaibi said the plateau production period for a series of deals signed with oil majors could be extended to 13 or 14 years rather than the current seven years, but no final decision has been made yet.

UAE Aug oil output rose to 2.6 mln bpd-source
DUBAI, Sept 11 (Reuters) - The United Arab Emirates (UAE) produced 2.6 million barrels per day (bpd) of oil in August, up from around 2.5 million bpd in July, a Gulf oil source told Reuters on Sunday.
Saudi Arabia and its Gulf allies, including the UAE, have raised their output since failing to convince other OPEC members in early June to agree a formal increase to help compensate for the shutdown of Libyan oil fields and meet demand.

S. Sudan to pay oil fees in arrears, eyes refineries
JUBA, Sept 9 (Reuters) - South Sudan will pay Khartoum in arrears for use of its oil facilities when the African Union decides on a rate as talks with Khartoum have failed, a government official said.
The new African nation is also considering building mobile refineries to overcome fuel and diesel shortages and is exploring for oil in the south east, said David Loro Gubek, undersecretary at the ministry of petroleum and mining.

NYMEX-Natural gas ends lower on day, up 1 pct for week
NEW YORK, Sept 9 (Reuters) - U.S. natural gas futures slid nearly 2 percent on Friday, pressured along with weaker crude futures by ongoing economic concerns.
"With the shoulder season right around the corner ... cooling demand will play a diminished role over the next several months. As such the only bullish driver that could possibly have a material impact on the supply and demand balance for natural gas will be a strong hurricane impacting production in the Gulf of Mexico, but much more severe than the loss of production experienced from Lee," Chirichella said.

Euro Coal-Prompt prices fall $3/T as buying halts
LONDON, Sept 9 (Reuters) - European prompt physical coal prices fell by around $3.00 a tonne on Friday as the limited utility and trade buying, which had been holding prices steady, vanished.
"Very prompt prices have dropped sharply, by over $3.00 since mid-week, because nobody wants coal so nearby and the usual buyer hasn't been much in evidence," one trader said.

COMMODITIES-Markets tumble as risk aversion boosts dollar
NEW YORK, Sept 9 (Reuters) - Copper prices tumbled their most in a month on Friday and oil fell too as investors fled risky assets and bought dollars due to mounting worries about the economies of the euro zone and the United States,
"Today's move is a vote of no confidence in the President's speech last night ... it's just triggering a risk-off mentality," said Steve Shafer, chief investment officer at hedge fund Covenant in Oklahoma City, which has about $300 million under management.

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