Thursday, May 26, 2011

20110526 1121 Global Market & Commodities Related News.

GLOBAL MARKETS: Asia stocks, euro rise as investors dive back into risk
SINGAPORE, May 26 (Reuters) - Asian stocks rose on Thursday, led by commodity and consumer related sectors, with steadier commodity markets and the euro's rally above $1.41 bringing some investors back into the markets in search of bargains.
The risks surrounding the euro have not eased much, with Greece fighting to avoid a debt restructuring that could have a big ripple effect across other high risk-European countries struggling with gaping fiscal deficits.

OIL: Oil hits 2-week high on US distillate draw, dollar
NEW YORK, May 25 (Reuters) - Oil prices rose 2 percent on Wednesday, climbing to two-week highs as an unexpected drop in U.S. distillate inventories trumped a sharp rise in gasoline stocks and as a softer dollar supported fresh commodities buying.
"The main component in today's rise in crude futures is the supportive drawdown in distillate stocks," said Rich Ilczyszyn, senior market strategist at Lind-Waldock in Chicago.

NATURAL GAS: Natural gas ends up, warmer weather backs gains
NEW YORK, May 25 (Reuters) - U.S. natural gas futures ended slightly higher on Wednesday, driven by recent drilling rig declines and more short covering on the warm Northeast and Midwest outlook for next week despite comfortable supplies.
"The market's been climbing ahead of expiration, probably on short-covering. The (warmer) weather is also lending some support, but I don't see prices getting back above recent highs (in the low-$4.70s)," a West Coast-based trader said.

EURO COAL: Euro Coal-Dips by $1/T, Aug DES trades at $120.25
LONDON, May 25 (Reuters) - Front month coal prices fell by around $1.00 a tonne on Wednesday as oil pared earlier gains, the dollar firmed and continued poor spot demand weighed on both the Atlantic and Pacific coal markets.
"Oil's down and coal's followed but currencies aren't always having an impact, it seems," one major European trader said.

COMMODITIES: Oil, Biggest rise in a week fueled by oil, soft dollar
NEW YORK, May 25 (Reuters) - Commodities on Wednesday posted their largest gains in a week, as oil prices rose on encouraging U.S. inventory data and the dollar slipped, fueling buying in a sector that has slumped this month.
"We've lots of pre-holiday short-covering emerging in livestock and softs as we had managed to press those markets to very, very low levels in recent weeks," Sterling Smith, analyst at Country Hedging in St Paul, Minnesota.

US firm buys "mystery" cargo of Libyan rebel oil
NEW YORK, May 25 (Reuters) - U.S. refiner Tesoro has bought the first oil cargo sold by rebels who control eastern Libya, a deal that could help them drum up funds to fight Muammar Gaddafi.
San Antonio-based Tesoro  told Reuters on Wednesday it bought the Libyan rebel crude to process in its Hawaii refinery. The deal was first agreed upon in late April, company spokesman Mike Marcy said.

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