Thursday, March 8, 2012

20120308 1120 Global Market & Commodities Related News.

GLOBAL MARKETS-Markets recover on Greece bond swap hopes
TOKYO, March 8 (Reuters) - Asian shares and the euro recovered on Thursday on brightening prospects for Greece to secure a crucial bond swap to avoid a messsy default and U.S. data suggesting a recovery in the labour market ahead of key jobs figures.
"EM asset prices have pulled lower on mainly global developments that have included uncertainty over the Greek PSI (private sector involvement) deal and some negative growth-related news. This should be viewed as an opportunity for adding to or putting on new longs, rather than as a precursor to a deeper sell-off," Barclays Capital analysts said.

COMMODITIES-Metals, oil up on economy hopes; grains slide
NEW YORK, March 7 (Reuters) - Oil, gold and copper rose on Wednesday, rebounding from a two-day rout as investors took in
strong U.S. jobs data and grew more hopeful about an end to Greek debt worries.
"More and more word is leaking that the creditors are going to accept the Greek bond swap. That's why you're seeing the turnaround today," said Matthew Zeman, head of trading with Kingsview Financial in Chicago.

Slumping spreads point to slight easing in oil
--John Kemp is a Reuters market analyst. The views expressed are his own--
LONDON, March 7 (Reuters) - Premiums for Brent delivered over the peak summer driving season have fallen nearly 50 percent
over the last three trading sessions, implying that refinery demand is starting to fall away as prices climb.
The premium for ICE Brent delivered in May  rather than June  has slumped from a high of 87 cents per barrel on March 1 to just 49 cents on March 6, according to Reuters data, with somewhat smaller declines for the Jun-Jul, Jul-Aug, and Aug-Sep spreads.

OIL-Oil up as Greece hopes, US jobs data fuel rebound
NEW YORK, March 7 (Reuters) - Crude oil rose on Wednesday, rebounding from a sharp decline as hopes that Greece's debt
restructuring will go through lifted the euro against the dollar, creating better bargains for oil buyers and fanning interest in riskier trades.
"The dollar's reversal on the news that more private bond holders are participating in the Greek debt swap has given way to the return of risk-on oil trades," said Addison Armstrong, senior director of market research at Tradition Energy in Stamford, Connecticut.

US natural gas futures end down 2 pct on mild forecasts
NEW YORK, March 7 (Reuters) - U.S. natural gas futures ended lower on Wednesday for a third straight day, with forecasts for mild late-winter weather and high supplies driving the front month to a six-week low despite a slowdown in drilling that could curb record high output.
"(Mild) weather is completely overwhelming the market. It's a real negative factor right now, but the market is getting oversold," an independent trader from Massachusetts said.

Euro Coal-Prices rise slightly with oil
LONDON, March 7 (Reuters) - Prompt physical coal prices rose slightly by 20-75 U.S. cents a tonne on Wednesday with stronger oil and the euro's gains but activity was muted and no fresh physical trades were reported.
Portugal's EDP  is tendering for several cargoes of U.S. or Colombian coal for 2012 delivery and is expected to award by early next week but otherwise end-user buying has been quiet and below the radar, suppliers said.

US energy diplomat sees Iran sanctions taking hold
HOUSTON, March 7 (Reuters) - U.S. sanctions that aim to slash Iran's oil export revenues are taking hold faster than expected, but other oil-producing countries are willing to calm markets if needed, the top U.S. energy diplomat said on Wednesday. "In effect, a process many thought would be phased in over time has actually taken hold pretty quickly," Carlos Pascual, the State Department's special envoy for international energy issues, said at a conference in Houston.

Shell says has stopped buying Iranian oil-CEO
HOUSTON, March 7 (Reuters) - Royal Dutch Shell  has stopped buying Iranian crude to comply with Western sanctions against Tehran and deliveries of oil under outstanding contracts will end within weeks, CEO Peter Voser said on Wednesday.
"We are complying with the sanctions. They do recognize previous commitments and contracts," Voser said in an interview with Reuters at the annual IHS CERA energy conference in Houston, adding that the old contracts will be fulfilled and shipments delivered "within a matter of weeks.

IEA says shale rules won't mean major costs boost
WARSAW, March 7 (Reuters) - New rules which the International Energy Agency (IEA) plans to recommend for G20 countries on the development of shale gas will not significantly raise production costs, the IEA's chief economist said on Wednesday. Economist Fatih Birol said the IEA was looking at issues regarding groundwater contamination, trucks traffic at drilling sites and other problems that could harm the environment.
 
S.Sudan plans underwater pipe for oil exports
March 7 (Reuters) - South Sudan, locked in a row over oil transit fees with neighbour Sudan, said on Wednesday it plans to build a temporary underwater oil pipeline along the Nile as part of a project to deliver crude for export from ports in Kenya and Djibouti.
The pipeline would extend from oilfields to the capital Juba where the crude would be transferred to trucks and taken on to Kenya and Djibouti, South Sudan's Minister of Petroleum and Mining Stephen Dhieu Dau told Reuters by telephone.

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