20121205 1252 Global Markets & Energy Related News.

GLOBAL MARKETS-Asian shares lacklustre, capped by U.S. budget worries
TOKYO, Dec 5 (Reuters) - Asian shares were little changed, with prices capped by continuing concerns over whether the United States can avert an economic slump as lawmakers struggle to break a budget impasse by year end.
"The market lacks news that could add to the momentum seen in late November. Investors' focus will remain on whether U.S. politicians will unravel the fiscal cliff problem," said Kim Hyeong-ryeol, an analyst at Kyobo Securities.

FOREX-Euro firm vs USD; AUD bulls give RBA the brush off
SYDNEY, Dec 5 (Reuters) - The euro hovered at seven-week highs against the greenback struggled against the Australian dollar, which gained broadly as investors brushed aside a cut in interest rates to focus on its still relatively high yield.
"We caution against expecting a further rally in EUR/CHF from here," Subbarao said, adding safe-haven flows underpinning the franc have not fully disappeared and negative interest rates in the 1970s were largely unsuccessful.

U.S. Republican unity frays amid 'fiscal cliff' tension
WASHINGTON, Dec 4 (Reuters) - U.S. congressional Republicans had wanted to show a united front against President Barack Obama's demand for tax hikes, but their tenuous coalition showed signs of strain on Tuesday.
Just a day after House Speaker John Boehner unveiled a "fiscal cliff" counteroffer with some concessions on revenues, he faced a criticism from some conservatives and what appeared to be a wait-and-see approach from others.

POLL-US crude stocks seen lower on higher refinery runs
Dec 4 (Reuters) - U.S. commercial crude oil stockpiles likely fell last week while gasoline and distillate were seen higher as refiners hiked runs, an expanded Reuters poll of 11 analysts showed on Tuesday.  
The survey ahead of weekly inventory reports from industry group American Petroleum Institute (API) and the U.S. Energy Information Administration (EIA) forecast that crude stocks would slip 300,000 barrels, on average, for the week ended Nov. 30.

UK oil output seen rising in next few years -study
LONDON, Dec 5 (Reuters) - Britain's North Sea oil output, long in decline, is likely to increase in the next few years, according to research published on Wednesday, reflecting the impact of rising investment, high prices and tax breaks.
Oil output will reach 1.4 million barrels per day (bpd) in 2017 based on an oil price of $90 a barrel, the University of Aberdeen study predicted. Last year, production fell more than 17 percent to average 1.04 million bpd.

Oil supply comfortable, Badri says ahead of OPEC
DOHA, Dec 4 (Reuters) - Global oil supplies are comfortable, OPEC secretary general Abdullah al-Badri said on Tuesday ahead of the oil exporting group's meeting in Vienna next week.
"The market is comfortable as I see it at this time," he told Reuters on sidelines of United Nations climate talks in Doha.

OIL - Oil falls on U.S. budget, fuel demand concerns
NEW YORK, Dec 4 (Reuters) - Oil prices fell on Tuesday, as concerns about the U.S. budget crisis and global fuel demand outweighed ongoing worries about instability in the Middle East.
"The reality is that we're going to get through the fiscal cliff," said Richard Ilczyszyn, chief market strategist of iitrader.com LLC in Chicago, noting that worries about the impact of instability in the Middle East on oil supplies was on the back burner for the moment.