Friday, February 24, 2012

20120224 1106 Global Market & Commodities Related News.

GLOBAL MARKETS-Shares inch up but growth worry caps
TOKYO, Feb 24 (Reuters) - Asian shares rose on Friday as solid U.S. data improved sentiment, but the upside may be capped by concerns that rising oil prices could deal a further blow to the fragile euro zone economy and moves to take profits after recent gains.
"The market will probably give Europe some benefit of doubt in the early months of the year as most were expecting weak data," Deutsche Bank said in a note dated Feb. 23.

COMMODITIES-Brent oil hits record in euro terms; gold extends rally
NEW YORK, Feb 23 (Reuters) - Brent crude hit a fresh nine-month high and a record in euro terms on Thursday as heightened tensions with Iran lifted oil markets and inflation fears sent gold to a three-month high.
"The issues around the euro zone translate into a much stronger dollar so Europe as a whole is not spared the rise in oil prices as it was back in 2008, when they enjoyed the buffer that their currency provided in relation to the price rise in dollar terms," said BNP commodity strategist Harry Tchilinguirian.

Myanmar plans new oil and gas tender, eyes Western firms
KUALA LUMPUR, Feb 23 (Reuters) - Myanmar will launch a global tender for six onshore oil and gas blocks as the reforming Southeast Asian country seeks to tap more foreign investment from the West, two Yangon-based sources with direct knowledge of the deals told Reuters.
The latest tender will be issued in late February or early March, according to the sources. It comes hot on the heels of Myanmar's largest oil and gas offering in August that saw 10 out of 18 onshore blocks snapped up, mostly by Asian firms.

European economies suffer regional oil shock
(John Kemp is a Reuters market analyst. The views expressed are his own)
LONDON, Feb 23 (Reuters) - The combination of surging oil prices and weak currencies is subjecting Europe's economies to a classic oil shock, which will add to the region's economic woes in 2012.
So far, strong currencies have blunted the impact on the United States, China and Japan. But the magnitude of oil-price rises, coupled with an expected recession in Europe, will probably cause growth to slow in these economies as well by mid-year.

Brent crude hits record high in euros
NEW YORK, Feb 23 (Reuters) - Brent crude rose for a fourth day, hitting a fresh nine-month high and a record in euro terms on Thursday, creating renewed concerns for cash-strapped Europe on heightened tensions between Iran and the West.
"Spread trading on WTI-Brent pushed up U.S. crude, which is also testing technical resistance here," said Chris Dillman, analyst at Tradition Energy in Stamford, Connecticut.  

US natgas futures end down slightly despite big stock draw
NEW YORK, Feb 23 (Reuters) - Front-month U.S. natural gas futures reversed course and ended slightly lower on Thursday, as mild weather forecasts into early March and record high supplies easily outweighed government data showing a weekly inventory draw above market expectations.  
"With winter winding down, today's mildly bullish natgas  inventory report was discounted immediately after its release as participants seemed to quickly focus on the bigger picture ... the oversupply is not going anyplace quick," Energy Management Institute's Dominick Chirichella said in a report.

Euro Coal-Prices stable despite oil modest gain
LONDON, Feb 23 (Reuters) - Prompt physical coal prices were little changed on Thursday on muted trading activity, and bid-offer spreads for fixed price cargoes widened by around $1, too far apart for trades to seem likely, utilities and traders said.
"The market's moved sideways, if anything, just looking at the wider spreads," one trader said.
Brent crude futures held on to gains, but U.S. crude dropped slightly after a government report showed a higher-than-expected rise in stocks.

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