Tuesday, February 28, 2012

20120228 1050 Global Market & Commodities Related News.

GLOBAL MARKETS-Markets consolidate, oil remains risk
 TOKYO, Feb 28 (Reuters) - Markets consolidated on Tuesday as investors remained wary of the impact from high oil prices on growth and hoped the European Central Bank's upcoming second liquidity injection will support sentiment and revive risk appetite.
"Although the issues surrounding Greek PSI and additional financial resources for Europe will likely dominate headlines, we believe that the upcoming LTRO and behaviour of energy prices are more important for market sentiment," said Barclays Capital analysts.

COMMODITIES-Oil's downturn hits gold, lifts copper
NEW YORK, Feb 27 (Reuters) - Commodity markets closed mixed on Monday, with crude oil finishing lower as the dollar strengthened and G20 officials expressed concern over high energy prices, but the end of oil's seven-day rally boosted industrial metals.
"The gold market may be straddled between tame physical   demand on the one hand and strong currency and investor   risk-related buying on the other," said James Steel, chief   commodity analyst at HSBC.

Oil falls after recent surge despite supply fear
NEW YORK, Feb 27 (Reuters) - Oil prices pulled back  on Monday after a string of higher settlements as concerns that high oil prices might curb economic growth, along with the stronger dollar, countered supportive  fears about Iran and potential supply disruptions.
"The energy complex is pulling back about 1 percent ... partially on a softening in the equities and euro," Jim Ritterbusch, president at Ritterbusch & Associates, said in a note.

POLL-US crude stocks seen up on higher imports
Feb 27 (Reuters) - U.S. crude oil stockpiles were seen up for the second straight week last week on higher imports, a preliminary Reuters poll of analysts showed on Monday.
On an average, analysts called for a build of 1.4 million barrels in crude stocks for the week of Feb. 24, with five out of six analysts polled predicted a build. Data from the U.S. Energy Information Administration last week showed U.S. crude stockpiles rose by 1.63 million barrels to 340.71 million barrels in the week to Feb. 17 as total demand for refined oil products plunged to the lowest level in nearly 15 years.

Too soon to tap US oil reserve-Sen. Murkowski
WASHINGTON, Feb 27 (Reuters) - The U.S. government should save its strategic oil reserves for a true supply emergency and resist the temptation to tap them now as a "quick fix" to quell rising gasoline prices, Republican Senator Lisa Murkowski said on Monday.
Releasing oil too soon from the salt caverns storing 696 million barrels of crude could have a short-term political pay-off by lowering gasoline prices but would sell the country short if tensions in Iran severely restrict world supplies later this year, Murkowski said in an interview.

Where was the smart oil money a few months ago?
(Robert Campbell is a Reuters market analyst. The views expressed are his own)
NEW YORK, Feb 27 (Reuters) - Anyone who has ridden the momentum in the oil market this year is probably looking good, at least in the short term, but the options market suggests few big investors were well positioned before the rally took off.    
The market, as a whole, on Nov. 30 was clearly far more worried about a dramatic sell-off in oil prices than a rally, particularly a rally with the catastrophic narratives that are accompanying this month's surge in oil prices.

Sanctions risk rerun of oil's 2011 flash crash
(John Kemp is a Reuters market analyst. The views expressed are his own)
LONDON, Feb 27 (Reuters) - Soaring oil prices and the loss of exports from South Sudan, Syria and Iran pose awkward questions for investors and policymakers.
Last year, a similar surge following the outbreak of the Libyan civil war eventually resulted in the flash crash on May 5 and the decision to release emergency stocks by the United States and other members of the International Energy Agency (IEA) on June 23.

US March natural gas futures expire on weak note
NEW YORK, Feb 27 (Reuters) - U.S. natural gas futures ended sharply lower on Monday, with the front-month March contract losing 4 percent at expiration as mild late-winter weather forecasts and bloated supplies continued to pressure the complex.
"The market is now retracing back to a level that is more reflective of the actual inventory situation ... oversupplied versus all comparative measures," Energy Management Institute's Dominick Chirichella said in a report.

Euro Coal-Prices dip 50c/T with weaker oil
LONDON, Feb 27 (Reuters) - Prompt physical coal prices fell a marginal 50 U.S. cents a tonne on Monday in line with weaker oil.
"There is still U.S. coal everywhere. The flow hasn't stopped despite the fall to under $100," one trader said.

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