Thursday, June 14, 2012

20120614 1113 Global Market & Commodities Related News.

GLOBAL MARKETS-Shares ease on weak US data, wary before Italy debt sale
TOKYO, June 14 (Reuters) - Asian shares eased as weak U.S. retail sales raised concerns about sluggish economic growth, while an Italian debt auction later will test market confidence in whether it can avoid becoming the next victim in the euro zone crisis.
"It tells you much about how bearish market expectations are when a 3 notch downgrade of Spain pushes EUR/USD 15 pips lower," said Sebastian Galy, strategist at Societe General.

COMMODITIES-Mostly down despite weaker dollar; soybeans tumble
NEW YORK, June 13 (Reuters) - Commodities were mostly lower with soybeans dropping the most in two weeks in reaction to favorable weather for the U.S. crop while crude oil was pressured by plentiful global supplies.
"Macroeconomic nervousness has a grip on the markets right now", off-setting the benefits from a weaker dollar, said Sterling Smith, agricultural analyst for Citigroup in Chicago.

OIL-Brent flat, U.S. crude down; OPEC meeting eyed
NEW YORK, June 13 (Reuters) - Brent crude oil futures closed near flat and U.S. crude fell about 1 percent in choppy trading as weak U.S. economic data and worries about the euro zone's finances outweighed a drawdown in U.S. crude inventories.
"Oil futures remain in an oversold condition, but the downtrend is persisting because of weaker demand," said Rich Alexander, senior broker at the Zaner Group in Chicago.

Japan to pass bill to insure Iran oil imports -report
TOKYO, June 14 (Reuters) - Japan's lower house is set to pass a special bill on Friday to allow it to provide insurance for continuing Iranian crude imports, making it the first country to attempt to initiate sovereign cover once EU sanctions on Iran are expected to start in July, the Yomiuri newspaper said on Thursday.
The bill is expected to be passed during the current session of the parliament that ends on June 21, as the secretary generals of the biggest opposition Liberal Democratic Party and its former partner, the New Komeito, have backed the bill, the report said.

World oil reserves up 8 pct, supply fears persist
LONDON, June 13 (Reuters) - The world's store of oil jumped 8.3 percent last year, as exploration rose and record crude prices made marginal projects commercially viable, yet supplies will struggle to meet demand due to political factors, oil giant BP  said on Wednesday.
BP said in its annual calculation of global oil and gas reserves, considered the industry's most comprehensive, that oil reserves totalled 1,653 billion barrels at the end of 2011.

POLL-US natgas storage seen up 74 bcf in weekly EIAs          
NEW YORK, June 13 (Reuters) - U.S. natural gas inventories were forecast to have gained 74 billion cubic feet last week, according to a Reuters poll of industry traders and analysts on Wednesday.
The U.S. Energy Information Administration will release gas storage data for the week ended June 8 on Thursday at 10:30 a.m. EDT (1430 GMT).

Saudi under OPEC pressure to prevent oil collapse
VIENNA, June 13 (Reuters) - Saudi Arabia came under pressure on Wednesday from fellow OPEC producers to cut oil output to prevent a further slide in crude prices.  
Price hawks in the Organization of the Petroleum Exporting Countries are fretting that slowing economic growth will send crude, already off $30 since March, plummeting further.

Sliding oil price rebalances Middle East economy
DUBAI, June 13 (Reuters) - Ziad Makhzoumi, chief financial officer of Arabtec , the United Arab Emirates' biggest construction firm by stock market value, thinks the region's economy will probably ride out weak oil prices comfortably. But he sees a risk.
If oil drops below the price at which energy-exporting countries in the Gulf can balance their state budgets - a scenario which he thinks unlikely - infrastructure and other building projects will slow down or in some cases halt.

NATURAL GAS-Mild weather sends US natural gas futures down 2 pct
NEW YORK, June 13 (Reuters) - U.S. natural gas futures, pressured by milder weather this week, ended lower, but the warmer outlook for later this week and next week helped limit the downside.
"There's not a lot of (hot) weather around to generate electric power demand, and the (EIA storage) build tomorrow could be a little bearish," said Tom Saal, senior vice president at INTL Hencorp Futures in Miami.

EURO-COAL-Bid/offer spreads narrow, trade quiet
LONDON, June 13 (Reuters) - European delivered coal prices held steady at around $82-85 a tonne but the bid/offer spreads narrowed, although few trades were reported.
"The Indians aren't really looking for replacements for Indonesian coal because they don't believe anything radical will happen this year beyond some incremental tax rises," one supplier said.

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