20110824 1124 Global Market & Commodities Related News.

Asian Stocks, U.S. Futures Fall (Source: Bloomberg)
Asian shares snapped their steepest gain in five months and U.S. stock futures declined amid weaker earnings and before data that may show the global economy is faltering. The yen erased losses against the dollar as traders shrugged off Japan’s efforts to combat the currency’s strength. The MSCI Asia Pacific Index slid 0.6 percent at 12:10 p.m. in Tokyo after a 2.1 percent rally yesterday. Standard & Poor’s 500 Index futures lost 0.8 percent. Treasury 10-year yields fell two basis points. The euro slipped 0.3 percent versus the dollar, while the yen was at 76.61 per dollar after earlier reaching 76.87. The cost of insuring Japan’s debt from default headed for the highest since the March earthquake. Gold jumped 1.3 percent.
Federal Reserve Chairman Ben S. Bernanke and other central bankers will meet in Jackson Hole, Wyoming amid signs of a faltering U.S. recovery. Data today may show business-equipment demand fell, two days before a report that may show the economy grew less in the second quarter than previously estimated. Moody’s Investors Service cut Japan’s credit rating by one step, saying “weak” prospects for growth will make it difficult for the government to rein in the world’s largest public debt burden.

GLOBAL MARKETS-Asian shares rise on hopes of more Fed support
Singapore, Aug 24 (Reuters) - Asian shares rose on Wednesday as speculation the Federal Reserve may signal further moves to support the struggling U.S. economy sustained a modest rebound from this month's sharp sell-off.
"It's been a while since Japan lost its triple-A status, so it is unlikely that Japan's interest rates will rise sharply," said Fumiyuki Takahashi, managing director at Barclays Capital.

Oil rises on anticipation Fed may signal stimulus
NEW YORK, Aug 23 (Reuters) - Oil rose on Tuesday along with equities on hopes that the U.S. Federal Reserve might indicate fresh stimulus measures later this week, with oil also drawing support from fighting in Libya and disrupted Nigerian exports.
"This is a rally driven on hopes of Bernanke saying something about more stimulus," said Bill O'Grady of Confluence Investment Management in St. Louis.

New Brazil oil round not seen until 2012 - Lobao
BRASILIA, Aug 23 (Reuters) - Brazil is unlikely to hold a new oil bidding round until early 2012, Mines and Energy Minister Edison Lobao said on Tuesday.
Brazil had hoped to hold its 11th oil round later this year but President Dilma Rousseff is still reviewing the exploration and production blocks that are expected to be put up for auction.

Brazil boom takes world fuel markets by surprise
RIO DE JANEIRO/SAO PAULO, Aug 23 (Reuters) - When Brazil discovered huge offshore crude reserves four years ago, state oil company Petrobras  sketched out plans to become a regional fuel exporter.That plan has since been turned upside down.
Rapid domestic economic growth and rising fossil fuels use has turned it into a recurrent fuels importer, with occasional gasoline purchases in 2010 evolving into regular imports that may not cease until the end of the decade.

Rails, not pipes, may tame twisted oil market
NEW YORK, Aug 23 (Reuters) - U.S. crude oil shipments by railroad could help to end gaping price distortions in world oil markets faster than most traders have been expecting.
Rail shipments of crude from the landlocked and oversupplied Midwest to refiners in the Gulf Coast appear set to surge next year, to nearly double the volume now flowing in congested pipelines between the regions.

Libyan oil output could resume quite soon, says OPS
LONDON, Aug 23 (Reuters) - Limited Libyan oil production could resume quite quickly as most oilfields appear to have survived the civil war unscathed, but output may be delayed several months by clogged pipelines, oil services company OPS International said on Tuesday.
OPS Chairman Gavin De Salis told Reuters Insider television that Libyan crude oil, prized for its high yield of valuable light products such as gasoline and for its low sulphur content, was also quite waxy, which could clog up pipelines if they had been left unused for some time.

Russia oil tax changes favour crude output, exports
MOSCOW, Aug 23 (Reuters) - Russian tax reforms due in October would benefit production and exploration heavyweights such as Rosneft and LUKOIL and help the world's top oil producer maintain output at current peak levels for another few years.
The reforms, in the works for over two years, encourage crude output and exports by lightening the burden of a tax system that captures over 90 cents of every $1 increase in the price of exported crude.

Oil services firms eye Libya return, output increase
NEW YORK/LONDON, Aug 23 (Reuters) - Limited Libyan oil production ought to resume quite quickly as most fields appear to have survived the civil war unscathed, international oil services companies say, but many are still waiting for more stability in the country before sending employees back in.
In interviews with some of the biggest oil services players in pre-civil war Libya, most echoed the view that major oil fields had largely avoided serious damage during the six months of fighting, though some voiced concerns about damage to export terminals and pipelines.

Natgas ends up nearly 3 pct, rallies late on quake
NEW YORK, Aug 23 (Reuters) - U.S. natural gas futures ended sharply higher on Tuesday, backed early by short covering on firmer cash prices and later by concerns about possible damage from an earthquake that shook the East Coast.
"A firm physical market has helped support paper (futures), but prices moved up more right after news of the quake," a Houston trader said, adding some expected cash prices to fall once Northeast temperatures moderated but physical gas is still quoted about 10 cents above futures.

Euro Coal-Oct ARA trades $1.00/T higher
LONDON, Aug 23 (Reuters) - European DES ARA coal prices rose by around $1.00 in line with stronger oil and power on Tuesday, utilities and traders said.  
"Germany is going to need more coal, the margins for burning coal have been great for months so they could be stocking up now," one supplier said.

COMMODITIES-Oil up on new U.S. stimulus hopes; gold plunges
NEW YORK, Aug 23 (Reuters) - Oil led most commodities higher on Tuesday on hopes of a new round of U.S. economic stimulus and on extended fighting in Libya, while gold plunged on profit-taking on fears it has been overbought.
"(The) rebels are in an urban warfare situation ...  increasing the risk of oil disruptions and a lengthy period before production can resume," O'Grady said.