Oil rises above $114 as supply woes persist after Libya cuts
SINGAPORE, Feb 28 (Reuters) - Brent crude rose more than $2 a barrel to a high of $114.50 as concern persisted about security of supply from the Middle East and North Africa even after top exporter Saudi Arabia boosted supply to meet the shortfall caused by a cut in exports from Libya.
"There is the continued threat that conflicts will spread in the region that produces a large amount of oil in the world," said Ben Westmore, a commodities economist at the National Australia Bank.
Wheat up half pct on strong consumer demand, soy dips
SINGAPORE, Feb 28 (Reuters) - U.S. wheat futures rose around half a percent, extending gains as growing demand from top buyers in the Middle East continued to underpin the market amid concerns over supplies this year.
"The downside on wheat is going to be limited as governments across the world are going to ensure that there are adequate stocks, give the unrest," said Abah Ofon, an agricultural commodities analyst at Standard Chartered Bank.
Sime eyes $2.5 bln oil palm expansion deal in Cameroon-FT
KUALA LUMPUR, Feb 28 (Reuters) - Malaysia's Sime Darby is considering a $2.5 billion plantation expansion deal in Cameroon, the Financial Times reported on Sunday, signalling the global grab for land is well underway as food prices soar.
The Financial Times quoted Sime Darby Chief Executive Mohd Bakke Salleh as saying the project in the West African state will involve 300,000 hectares (741,300 acres) of oil palm estates although discussions have so far led to "nothing conclusive."
Argentine crops lifted by scattered showers-gov't
BUENOS AIRES, Feb 25 (Reuters) - Scattered showers in Argentine soy-growing regions further improved the condition of oilseed crops hit by severe dryness earlier this year, the Agriculture Ministry said on Friday in its weekly report.
Argentina is the world's No.3 exporter of soybeans and the top supplier of soyoil and meal, and dryness caused by the La Nina weather phenomena earlier this year led analysts to lower their forecasts for soy output in the South American country.
Gold headed for best month since August on Libya unrest
SINGAPORE, Feb 28 (Reuters) - Spot gold inched up on Monday, heading for its best month since last August, boosted by fears over the deteriorating situation in Libya and spreading violence in the region, supported by rising oil prices.
"The sentiment is still generally bullish," said a Singapore-based dealer, "If oil keeps going up, people will continue to bet on gold, as a hedge against inflation and against risks caused by the unrest in the Middle East."
Shares dip; emerging Asia outflows may persist
SINGAPORE, Feb 28 (Reuters) - Asian shares on Monday slipped back toward a three-month low hit last week, with emerging Asian equities seen likely to keep lagging developed markets as investors fret about risks from inflation.
"There are strong concerns about inflation based on excessive liquidity and emerging markets have been hurt more by this," said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management in Tokyo.
OIL: Crude jumps nearly $2 towards $100 on Libya
TOKYO, Feb 28 (Reuters) - U.S. crude futures jumped by nearly $2 towards $100 a barrel on Monday as the worsening situation in Libya fed worries that unrest in the Middle East would spread and that oil flows in the region would be disrupted.
Concern about supply disruption from OPEC-member Libya, where revolt against its long-serving president has significantly cut down on exports, on Thursday drove Brent to a 2-½ year-high of nearly $120 a barrel and U.S. crude to more than $103.
COMMODITIES: Oil, copper and cocoa up on political unrest
NEW YORK, Feb 25 (Reuters) - Crude gained with Brent oil holding above $112 a barrel on Friday as unrest in the Middle East, including a bloody political standoff in OPEC producer Libya, overshadowed news that Saudi Arabia has boosted oil output in recent days.
"I don't think many traders are comfortable being short over the weekend," said Tom Bentz, an energy broker at BNP Paribas Commodity Futures in New York.
GLOBAL MARKETS: Oil rises, Asian shares dip on Libya worries
SINGAPORE, Feb 28 (Reuters) - London crude prices rose by more than $1 and Asian shares edged lower on Monday, as the worsening situation in Libya stirred renewed concern about disruptions to oil production.
"With rising commodity prices, the ECB will likely continue its tough talk on inflation, increasing the probability of early ECB tightening," BNP Paribas analysts wrote in a note.
Rising oil prices could stall US states' recoveries
WASHINGTON, Feb 27 (Reuters) - Rising oil prices could trample prospects for economic recovery in many U.S. states, three governors warned on Sunday, as a leading economist said they also threaten the country's economic comeback.
"Oil prices -- I hope don't go any higher," said Indiana Governor Mitch Daniels, a possible contender for the Republican presidential nomination in 2012. "But everywhere now one hears there's more than a minor risk they're going to go a lot higher."
Fed officials play down oil price risks
NEW YORK, Feb 25 (Reuters) - The Federal Reserve would react to higher oil prices only if the increases spilled over into broader areas, officials of the U.S. central bank said on Friday, with one policy maker calling the risks "manageable."
In a similar vein, an official of the European Central Bank said policy makers should be wary of responding too soon to the recent jump in oil prices as it may be fleeting.
Fed's Bullard says it's time to debate completing QE2
BOWLING GREEN, Ky., Feb 24 (Reuters) - A senior U.S. Federal Reserve official said on Thursday he thinks it is time to consider tapering off or scaling back a $600 billion bond-buying program because of an improved economic outlook.
"The natural debate now is whether to complete the program or to taper off to a somewhat lower level of assets," St. Louis Federal Reserve President James Bullard said at a Chamber of Commerce breakfast held at Western Kentucky University.
U.S. jobless claims fall, durable orders mixed
WASHINGTON, Feb 24 (Reuters) - New U.S. claims for jobless aid fell last week, indicating healing in the labor market, but declines in new home sales and orders for a range of factory goods in January showed the recovery remains uneven.
The recovery has been slow by historical standards and the unemployment rate remains at a painfully high 9 percent. But analysts see the economy making headway and saw the jobless claims data as evidence of better days ahead.
PRECIOUS-Gold near $1,400/oz, supported by Mideast unrest
LONDON, Feb 25 (Reuters) - Gold held near $1,400 an ounce in Europe on Friday, supported by interest in the metal as a haven from risk as violence flared in Libya, but struggled to maintain traction as some investors cashed in this week's hefty gains.
The U.N. Security Council is to meet later to discuss a draft proposal for sanctions against Libyan leaders, who are battling for survival against a popular uprising in which French estimates say some 2,000 people may have died.
FOREX-Dollar edges up as oil prices ease; U.S. GDP due
LONDON, Feb 25 (Reuters) - The dollar edged up on Friday, helped as oil prices retreated from their recent highs on easing concerns about the turmoil in Libya and as investors squared positions ahead of the weekend.
However, the euro still hovered near 2011 highs against the U.S. currency, helped by inflation-fighting rhetoric from euro zone policymakers which has added to expectations euro zone rates will rise while U.S. policy remains loose.
Oil resumes surge, keeps stocks under check
LONDON, Feb 25 (Reuters) - Oil resumed its surge as political tension in North Africa showed little signs of abating and stock prices were checked on fears that runaway oil prices will constrain global growth.
"The Libyan crisis really brought back the geopolitical risks at the forefront of investors' minds," said David Thebault, head of quantitative sales trading, at Global Equities in Paris. "That being said, this week's pull-back (in stock prices) has been serious and we're getting close to a floor here."
