Tuesday, June 12, 2012

20120612 1134 Global Market & Commodities Related News.

GLOBAL MARKETS-Markets reverse gains on Spanish debt concerns
TOKYO, June 12 (Reuters) - Asian markets reversed the previous day's hefty gains on Tuesday as a European bailout for Spain's debt-stricken banks failed to convince investors that the spread of the debt crisis in Europe will be halted.
"The 'risk-on' trade is over as investors look to the Greek elections and Italy," said Jeff Sica, president of SICA Wealth Management, which manages more than $1 billion in client assets, real estate and private equity holdings.

COMMODITIES-Markets reverse gains on worry over Spain bailout
NEW YORK, June 11 (Reuters) - Many commodities finished lower, after being higher early, with oil tumbling and corn posting its sharpest drop in two weeks as investors became doubtful that Spain and its ailing banking sector will benefit much from an European bailout.
"At the moment there are fears still of a possible contagion in the euro zone ahead of the Greek elections on the weekend", said Eugen Weinberg, a commodities analyst at Frankfurt's Commerzbank.

On oil, Goldman sees reasons to be bullish
--John Kemp is a Reuters market analyst. The views expressed are his own--
LONDON, June 11 (Reuters) - The overdone selloff in commodity prices, especially crude oil, has created the potential for a strong rally once fundamentals reassert themselves and hedge funds re-enter the market, according to researchers at Goldman Sachs.
"We believe that the selloff in commodity prices is likely overdone and the price risks are shifting more to the upside," Goldman wrote in a note published on Monday ("Commodity Watch: Stepping back into the markets" June 11, 2012).

OIL-Brent crude slips more than $1 on euro zone debt fears
SINGAPORE, June 12 (Reuters) - Brent crude futures extended losses in early Asian trade on growing concerns the euro zone debt crisis will worsen and threaten oil demand.
Brent  slipped as low as $96.62 a barrel, inching close to the low for the year of $95.63, struck on June 4. The benchmark was trading $1.16 lower at $96.84 by 0007 GMT.

POLL-US crude stocks forecast down on lower imports
June 11 (Reuters) - U.S. crude oil supplies were forecast to have fallen  last week for the second straight time, due to lower imports, a preliminary Reuters poll showed on Monday.
Commercial crude stocks were projected down 1.5 million barrels for the week ended June 8, with four of five analysts expecting a draw and the other a build.

Saudi says OPEC may need higher output target
VIENNA, June 11 (Reuters) - Leading oil producer Saudi Arabia put itself on a collision course with fellow OPEC member countries on Monday by calling for an increase in the cartel's output target despite a recent fall in crude prices.
"Our analysis suggests that we will need a higher ceiling than currently exists," Saudi Oil Minister Ali al-Naimi said in an interview with the Gulf Oil Review ahead of a meeting of the Organization of the Petroleum Exporting Countries on Thursday.

NATURAL GAS-US natgas futures end down, front hits 6-wk low
NEW YORK, June 11 (Reuters) - U.S. natural gas futures ended lower for the third time in four sessions, with the front-month contract driven to a six-week low on moderating weather forecasts, record high inventories and still-strong production.
"It's hot in Texas, but (overall) the weather's not helping much," a Houston-based trader said, noting forecasts for the Northeast and Midwest turned a bit milder this week which should slow air conditioning demand.

EURO COAL-ARA trades at two-year low of $84.90/T
LONDON, June 11 (Reuters) - European delivered coal prices traded at a fresh two-year low of $84.90 a tonne, down over $1.00 from Friday as oversupply and a slowdown in spot buying weighed on the market.
"There's so little buying overall, nothing wanted in China now, they have hit their maximum import capacity and can't physically take more till inventories start to be used," one trader said.

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