20121219 1118 Global Markets & Energy Related News.

GLOBAL MARKETS-Shares, euro up on hopes of U.S. "cliff" deal, BOJ easing
SINGAPORE, Dec 19 (Reuters) - Asian shares rose and the euro hovered around multi-month highs as signs of progress in resolving the U.S. "fiscal cliff" budget crisis boosted demand for riskier assets.
"The market is already in overbought territory, but investors are increasingly being alarmed that there is a risk of not having Japanese stocks in their portfolios," said Hiroichi Nishi, general manager at SMBC Nikko Securities.

FOREX-Euro outperforms majors, yen still pinned down
SYDNEY, Dec 19 (Reuters) - The euro hovered at multi-month highs against the dollar and yen, having extended recent gains as tentative signs of progress in the U.S. fiscal talks bolstered demand for riskier assets.
"We believe the year-end position squeeze is the main driver of the euro's broad outperformance at the moment, especially as both valuations and positioning are starting to appear stretched for the high-beta currencies," analysts at BNP Paribas wrote in a note.

Obama puts Democrats in bind with Social Security concession
WASHINGTON, Dec 18 (Reuters) - President Barack Obama has put Democrats in Congress in a tough spot politically after he conceded to Republican demands in the "fiscal cliff" negotiations that the government use a lower inflation index for calculating federal benefits.
Although Obama was open to changing the index during last year's budget fight with Republicans, Democrats and progressives who helped re-elect Obama in November hoped new leverage gained from the win would prevent a repeat of that concession and had been warning the White House not to do so.

OIL-Oil rises on 'fiscal cliff' optimism, refinery issues
NEW YORK, Dec 18 (Reuters) - Oil prices rose on Tuesday as apparent progress in resolving the U.S. budget crisis eased concerns that the world's top economy could slip into recession.
"Everything is keying on the 'cliff' hopes, because people are assessing if we're closer to a deal," said Mark Waggoner, president at Excel Futures Inc.

U.S. crude stocks drop, oil products mixed last week –API
NEW YORK, Dec 18 (Reuters) - U.S. crude stocks fell last week as imports dropped and refined product stocks were mixed as processing rates rose, data from the American Petroleum Institute showed on Tuesday.
Crude oil stocks fell by 4.1 million barrels in the week to Dec. 14. Analysts polled by Reuters had forecast a 1.1 million barrel drawdown.

POLL-US crude inventories seen lower as refiners import less
Dec 18 (Reuters) - U.S. commercial crude oil stockpiles were expected to have fallen last week on lower imports as refiners drew down inventories for end-of-the-year tax purposes, an extended Reuters poll of 11 analysts showed on Tuesday.  
The survey ahead of weekly inventory reports from industry group the American Petroleum Institute (API) and the U.S. Energy Information Administration (EIA), forecast that crude stocks would drop by 1.1 million barrels on average for the week ended Dec. 14.