Thursday, March 1, 2012

20120301 1123 Global Market & Commodities Related News.

GLOBAL MARKETS-Markets dampened by Bernanke, eye PMI
TOKYO, March 1 (Reuters) - Asian shares mostly fell on Thursday as Federal Reserve Chairman Ben Bernanke put the brakes on a recent rally by not signalling any further monetary easing to stimulate growth, while investors shifted their focus to manufacturing data due later in the day.
"The U.S. dollar pushes higher while equities retreat alongside metals as Bernanke gives a nod to inflation, departing from his last three speeches where he accentuated the extension of extremely low interest rates into 2014," said Ashraf Laidi, chief global strategist at City Index Group.

COMMODITIES-Gold tumbles, copper drops from 2-wk high
NEW YORK, Feb 29 (Reuters) - Gold tumbled 5 percent on Wednesday, its biggest one-day decline in more than three years, while copper slipped from a two-week high and soybeans posted a five-month high.
"There is no hint from Bernanke's speech that there will be a QE3 type program which people have been hoping for," said Jeffrey Sherman, commodities portfolio manager of DoubleLine Capital, a Los Angeles-based investment manager with $28 billion in assets.

December data underscores weak U.S. gasoline demand
(Robert Campbell is a Reuters market analyst. The views expressed are his own)
NEW YORK, Feb 29 (Reuters) - Monthly data for December 2011 released on Wednesday shows U.S. gasoline demand continued to come in well below year-ago levels even as the economy accelerated, suggesting some of the weakness seen in more recent monthly data may not be out of place.
Analysts have questioned the picture painted of U.S. gasoline demand by the Energy Information Administration's weekly "product supplied" estimate as it has regularly come in down 5 percent or more from year-ago levels.

IEA oil release faces bigger logistics hurdle with Iran
(Robert Campbell is a Reuters market analyst. The views expressed are his own)
NEW YORK, Feb 29 (Reuters) - Western policymakers are itching to release strategic oil stocks after their Iran policies triggered a potentially damaging surge in crude prices, but the logistics issues that dampened the impact of last year's emergency oil sales are more daunting now.
The temptation to release stocks is great. Leaving aside election year concerns, Western governments have a legitimate concern that rising energy costs may derail the still-fragile economic recovery.

Oil ends Feb. higher on upbeat U.S. Fed report
NEW YORK, Feb 29 (Reuters) - Oil jumped back to positive territory in late trading on Wednesday, ending the month sharply higher as the Federal Reserve said that the U.S. economy expanded modestly in January through mid-February as hiring increased across several of its districts.
"The Beige Book report certainly was positive for oil futures," said Phil Flynn, analyst at PFGBest Research in Chicago.  

US natural gas ends up ahead of stocks report
NEW YORK, Feb 29 (Reuters) - U.S. natural gas futures ended higher on Wednesday, backed by  slightly cooler weather forecasts and some technical buying after four straight losing sessions and on the eve of a weekly government inventory report.
"We could have seen a little technical bounce back after four days of declines, but the weather is pretty bearish, and I still expect prices to move lower," Gelber & Associates analyst Pax Saunders said.

Euro Coal-Prompt prices drop $1/T on gas, oversupply
LONDON, Feb 29 (Reuters) - Prompt physical coal prices fell for the second day running by $1.00 a tonne, pressured by oversupply and weak gas prices.
"A March DES ARA cargo traded at $96 and a May at $98, both down by $1.00, the front months are looking weak," one utility source said.

U.S. crude oil imports up slightly in Dec-EIA
WASHINGTON, Feb 28 (Reuters) - U.S. crude oil imports rose for the third consecutive month in December, increasing a slight 21,000 bpd from a year earlier, the Energy Information Administration said on Wednesday.
Crude imports averaged 8.716 million bpd in December, nearly unchanged from the from the 8.695 million bpd imported during the month in 2010.

OPEC oil output rises to more than 3-year high
LONDON, Feb 29 (Reuters) - OPEC oil output has risen in February to the highest since October 2008 due to a further recovery in Libya's production, higher supplies from Angola and Saudi Arabia, a Reuters survey found on Wednesday.
Supply from all 12 members of the Organization of the Petroleum Exporting Countries has averaged 31.23 million barrels per day (bpd), up from 30.95 million bpd in January, the survey of sources at oil companies, OPEC officials and analysts found.  

IEA, EU see no need for oil stockpiles release
BRUSSELS/MEXICO CITY, Feb 29 (Reuters) - Oil consuming nations have no need to release stockpiles as they do not face a supply crunch, EU officials and the agency for consumers said on Wednesday after Washington announced it may use stocks to stem soaring gasoline prices in an election year.
Oil prices hit a 10-month high last week in dollar terms  and an all-time high in euros and British pounds amid fears over a loss of Iranian oil supplies and a Israeli attack on the Islamic Republic's nuclear installations.

Closed U.S. refineries open door for European gasoline
LONDON/NEW YORK, Feb 29 (Reuters) - Europe's gasoline traders are betting on richer pickings from this year's U.S. summer driving season, despite a grim demand outlook, because U.S. refinery closures have tightened supply in the major East Coast market.
For the last two summers, high unemployment in the United States and soaring prices at the pump have meant less driving, spelling disappointment for European gasoline traders and refiners hoping for a return to the bumper U.S. driving seasons of the mid-2000s.

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