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Nov-04-2009Oil Rises as Gold Climbs to Record on Bank's Bullion Purchase(topic overview)
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Crude oil futures for December delivery fell 8 U.S. cents to $US76.92 a barrel on the New York Mercantile Exchange. [1] Crude oil for December delivery climbed $US1.16, or 1.5 per cent, to $US79.29 a barrel on the New York Mercantile Exchange. Prices have risen 78 per cent this year.[2] Light, sweet crude oil for December delivery settled $US1.13, or 1.5 per cent, higher at $US78.13 a barrel on the New York Mercantile Exchange.[3]
Light, sweet crude for December delivery rose 1.47 dollars, or 1.9 percent, to settle at 79.60 dollars a barrel on the New York Mercantile Exchange. Oil gained mainly on hopes that energy demand will be finally picked up as global economy rebounds from the worst recession after the World War II. Strong manufacturing data from both the United States and China, top two energy consuming countries, drove crude up 1.5 percent on Monday.[4] December contracts for West Texas Intermediate crude were up $1.35 to $79.48 per barrel on the New York Mercantile Exchange after going as low as $76.55 in early trade, while at last report Brent crude for December delivery had added $1.57 to $78.12 per barrel.[5] By early afternoon in Europe, benchmark crude for December delivery was down 97 cents to $77.16 a barrel in electronic trading on the New York Mercantile Exchange.[6] On the New York Mercantile Exchange at 10:24 a.m. EST (1524 GMT), December crude CLZ9 was up $1.05, or 1.36 percent, at $78.05 a barrel, trading from $76.56 to $78.25.[7]
Light, sweet crude for December delivery recently traded $1.13, or 1.4%, higher at $79.26 a barrel on the New York Mercantile Exchange.[8] Gold futures for December delivery rose to a record $US1085.30 an ounce on the Comex division of the New York Mercantile Exchange.[2] COMEX - Gold contracts for December delivery added $US15.90 to $US1,056.30 an ounce on the New York Mercantile Exchange.[9]
With minutes of trading to go, New York's main contract, light sweet crude for December delivery had gained $US1.04 to $US78.04 a barrel.[9] Brent North Sea crude for December delivery shed 73 cents to $75.82 per barrel. Traders took their cue from the strengthening greenback, which makes dollar-priced crude more expensive for buyers holding foreign currencies, dampening oil demand.In late morning London deals, the European single currency hit a one-month low of $1.4636 as compared with $1.4772 late in New York on Monday.[10] New York's main contract, light sweet crude for delivery in December dipped 84 cents to $77.29 a barrel.[10] New York's main contract, light sweet crude for delivery in December, rose 64 cents to 78.77 dollars a barrel after falling by a similar amount earlier.[11]
Global equities slip, Wall Street weaker at the open NEW YORK, Nov 3 (Reuters) - U.S. crude oil futures fell on Tuesday as a stronger dollar, weaker equities and caution ahead of oil inventory data and a Federal Reserve meeting combined to pressure oil. "With the dollar strengthening appreciably this morning, especially against the euro, the energy complex is in process of relinquishing yesterday's gains," Jim Ritterbusch, president at Ritterbusch & Associates, said in a research note.[12] NEW YORK, Nov 3 (Reuters) - U.S. crude futures rose on Tuesday after seesawing, bouncing off technical support as stronger than expected factory order data and a rally in gold helped boost oil despite the dollar's strength and weak equities. "It's a technical rally.[13] U.S. factory orders up more than expected in September NEW YORK, Nov 3 (Reuters) - U.S. crude oil futures seesawed near unchanged on Tuesday, as the dollar's strength and an equities slip provided pressure that limited any lift for oil from a report of improved factory orders.[14] NEW YORK (Dow Jones)--Crude futures are lower Tuesday, led by dollar strength and influenced by expectations that weekly oil inventory data reports will show a a rise in U.S. crude stocks.[15] NEW YORK, Nov 3 (Reuters) - U.S. crude oil futures were little changed in post-settlement trading on Tuesday after industry data showed a surprise drawdown in domestic crude stocks last week.[16] NEW YORK, Nov 2 (Reuters) - U.S. crude oil futures bounced higher on Monday after seesawing earlier, lifted by supportive data for the economies of the United States and China.[7] NEW YORK, Nov 2 (Reuters) - U.S. crude oil futures rebounded on Monday as a trio of economic reports on domestic manufacturing, construction and pending home sales showed that the economy continues to recover from recession.[17] The U.S. manufacturing sector grew in October for the third month in a row, and at a faster clip than was expected, a report from the Institute for Supply Management showed. Pending sales of previously owned homes unexpectedly rose in September to their highest level in nearly three years, before a tax credit for first-time buyers expired. U.S. construction spending made its largest gain in a year in September, helped by a record pace in public construction and the biggest rise in private residential building in more than six years, the Commerce Department said. "This suggested that domestic demand was growing rapidly, which augurs well for energy demand growth in the world's second largest consumer of oil," said Mike Fitzpatrick, vice president at MF Global in New York.[17]
The oil price also rose by more than $1 a barrel after strong manufacturing data from the U.S. increased optimism about the global economic recovery.[18] Contrary to the negative fundamental data, strong manufacturing numbers were reported from the U.S. yesterday, along with positive economic news from Europe and China. Crude oil prices jumped with this news.[19] U.S. manufacturing and housing data reported early in the session exceeded analyst expectations, reigniting some of the economic optimism that had evaporated at the end of last week, causing a 3.7 per cent fall in oil prices.[3]
Futures lost 4.4 per cent last week, the first pullback in a month, after U.S. crude oil and gasoline stockpiles rose, equities declined and the dollar'''s rebound reduced the investment appeal of commodities.[1] Brent crude on the ICE futures exchange closed $US1.35, or 1.8 per cent higher, at $US76.55 a barrel.[3] December Brent crude on London's ICE Futures exchange rose 26 cents to $76.81 a barrel.[20] In London, Brent crude for December delivery fell 88 cents to $75.67 on the ICE Futures exchange. Associated Press writer Alex Kennedy in Singapore contributed to this report.[6] In London, Brent Crude for December delivery added 1.56 dollars to settle at 78.11 dollars a barrel on the ICE Futures exchange.[4]
Brent crude on the ICE futures exchange traded $1.10 lower at $75.45 a barrel. The dollar is clawing back its previous losses against the euro, strengthening substantially to $1.4650 from an earlier level of $1.4811,.[15]
At 1130 GMT, the front-month December Brent contract on London's ICE futures exchange was down 83 cents at $75.72 a barrel.[21]
In London, December Brent crude LCOZ9 fell 97 cents, or 1.27 percent, to $75.58 a barrel, trading from $75.08 to $76.94.[12] NYMEX December heating oil HOZ9 fell 0.43 cents, or 0.21 percent, to $2.0417 a gallon, trading from $2.0030 to $2.0548.[14] NYMEX December RBOB RBZ9 rose 1.42 cents, or 0.71 percent, to $2.0045 a gallon, trading from $1.9379 to $2.01.[13]
Nymex December gasoline futures were down 3 cents to $1.96 per gallon while December heating oil added 2 cents to $2.07 per gallon and December natural gas traded even at $4.82 per million British thermal units.[5]
NEW YORK (Dow Jones)--Crude futures climbed above $79 a barrel Tuesday, erasing earlier losses after a rise in U.S. factory orders lent weight to hopes that an economic upturn will lift oil consumption and amid a buying spurt across the commodity spectrum.[8] NEW YORK (Dow Jones)--Crude futures rose above $79 a barrel Tuesday after upbeat U.S. factory orders renewed confidence in the economy amid a general spurt of investor buying across the board in commodities.[22]
NEW YORK, Nov. 3 (Xinhua) -- Crude prices rose on Tuesday as investors weighed economic recovery outlook against strengthening U.S. dollar.[4] NEW YORK, Nov 3 (Reuters) - U.S. crude oil inventories fell unexpectedly last week, while product inventories rose, according to weekly data from the American Petroleum Institute issued on Tuesday.[23] Crude oil prices fell in New York before a report forecast to show that crude-oil inventories increased for a fourth week.[18]
NEW YORK ( TheStreet ) -- As the dollar strengthened, crude oil futures were lower on Tuesday morning.[24] "Crude tested support at $76.50 area and held. The dollar came off its early highs and equities also recovered some since the factory orders data," said Tom Bentz, analyst at BNP Paribas Commodity Futures Inc in New York.[14] "Oil tested support in the $US76.50 area and failed to break through," said Tom Bentz, a senior energy analyst at BNP Paribas Commodity Futures Inc. in New York. "From a technical standpoint, this was a sign that prices are moving higher."[2] Some people are viewing the rally in gold as a reason to push crude up," said Tim Evans, energy analyst at Citi Futures Perspective in New York.[13]
December gold was up $30.90 to $1,084.90 per troy ounce in New York trade, while December silver added 75 cents to $17.19 per troy ounce and January platinum gained $18.10 to $1,356.20 per troy ounce, but by late morning in New York palladium had dropped $4.85 to $321.50 per troy ounce as investors took profits.[5] Among base metals, December copper was up a cent to $2.96 per pound in New York but three-month copper fell $65 to $6,490 per tonne, or $2.94 per pound, in late afternoon trade on the London Metal Exchange after inventories in LME-monitored warehouses continued to climb, extending concerns over demand strength.[5]
The British pound rose to $1.6393 from $1.6383, while the dollar fell to 90.21 Japanese yen from 90.35 late Monday in New York.[6]
LONDON: Oil fell more than $1 per barrel to below $77 on Tuesday as stock markets slipped in Europe and Asia and the dollar rose against a basket of currencies.[25] Market commentators are expecting investors to remain poised as the U.S. demand and subsequent consumption outlook may become clearer with a slew of economic reports due over the course of the week. With the exception of Tullow Oil (LSE: TLW), which started the day with marginal declines, all UK listed blue chip oil companies rose on the London Stock Exchange this morning.[26] Manufacturing activity hit a three-and-a-half year high in October, and home sales were on the rise as well. These numbers generated confidence that the U.S. economy'''the world'''s largest oil consumer'''was recovering and would swell global oil demand. Such hopes were deflated on Tuesday, as stock markets in Asia and Europe suffered losses and oil analysts predicted another buildup of inventories in this week'''s inventory reports.[27]
According to Shum, crude prices are unlikely to hold above the 80 dollars level due to investor concerns about energy demand amid mixed signals on the state of the global economy, in particular the U.S., the world's top oil user.[28] Oil had risen sharply on Monday, buoyed by a weaker dollar and positive U.S. and Chinese economic data that boosted hopes of stronger demand in the two biggest energy-consuming nations. The U.S. is the world's biggest energy user and a recovery in its economy is seen as key to oil demand, which has been hit by the global financial crisis.[29]
As an immediate result of the data, the Australian dollar plunged 0.50 U.S. cents, from $0.9035 to $0.8983. While it has recovered a bit, the data and the resulting currency move suggest a pause in the Reserve Bank of Australia's program of interest rate hikes at its next meeting in December. The RBA has hiked rates by 25 basis points in each of its last two policy meetings - the first G20 nation to raise rates following the global economic downturn.[30]
Crude futures had rebounded sharply on Monday, buoyed by a weaker dollar and positive U.S. and Chinese economic data that bolstered hopes of stronger demand in the two biggest energy-consuming nations. The Institute of Supply Management said its factory index, also known as the purchasing managers index, grew for a third consecutive month in October with a reading of 55.7 percent. It was stronger than market expectations for a reading of 53 percent and the highest rate of growth since April 2006.[10] Crude futures earlier settled higher, lifted by data showing rising factory orders, a rally in gold futures and firm technical support. Traders said the oil markets veered away from influence that they usually get from Wall Street, which was mixed in late trading, and the U.S. dollar, which hit a one-month high against a basket of currencies.[16] SYDNEY (Dow Jones)--Crude oil futures were slightly higher in Asian trading Tuesday, propelled by weakness in the U.S. dollar on a day when trading desks in Japan were closed for a public holiday.[20]
"When oil gets close to the 80-dollar level and the market tends to focus more on the high inventories of crude oil and fuel globally, it is difficult to surge through 80 dollars and sustain above the 80-dollar level," Shum said. "The market will also look at the U.S. government inventory report coming out later today," he said. A Dow Jones Newswires poll of analysts expect U.S. crude reserves to have risen 1.4 million barrels in the past week when the Department of Energy releases its widely monitored inventory report later Wednesday.[28] Inventories of crude oil rose 1.5 million barrels in the week ended Oct. 30 from 339.9 million the prior week, according to a Bloomberg survey before tomorrow'''s Energy Department report.[18]
Russia remains the world's top oil producer, posting a new post-Soviet high of more than 10 million barrels per day of crude in October, Energy Ministry data said.[7] An expanded Reuters poll of analysts forecast a 1.4 million barrel build in crude inventories, a 1.0 million barrel decline in distillate stocks, and a 300,000 barrel increase in gasoline supplies. The U.S. Energy Information Administration will release its own data on Wednesday, at 10:30 a.m. EST (1530 GMT).[16] Crude imports were off 156,000 barrels per day at 8.27 million bpd. "API says imports were down, but most everybody was expecting these to be up. Perhaps prices won't move much on this data and traders will prefer to wait for the DOE numbers tomorrow," said Phil Flynn, analyst at PFGBest Research in Chicago. On Wednesday at 10.30 a.m. EST, the U.S. Energy Information Administration, an arm of the U.S. Department of Energy, will release its weekly inventory figures.[23]
Tomorrow'''s new U.S. inventories data from the Energy Information Administration is expected to show that stockpiles of crude oil, gasoline and distillates were all higher last week as demand for gasoline weakened slightly.[5] Earlier, late morning U.S. east coast time, crude oil rose from a two-week low as manufacturing expanded in the U.S. and China in October, signaling energy demand is increasing in the world'''s two biggest oil-consuming countries.[1]
Crude oil rose more than $US1 a barrel after failing to decline below a two-week low and as the India'''s central bank purchase of gold bolstered the appeal of commodities to investors.[2] SINGAPORE (Reuters) - Oil inched down towards $79 a barrel on Wednesday, after rising nearly 2 percent a day ago, following an industry report showing a rise in fuel inventories in the United States though crude fell unexpectedly.[31] U.S. crude for December fell 26 cents to $79.35 a barrel by 0334 GMT, after settling up $1.47 on Tuesday.[31] U.S. crude rose 64 cents to $78.77 a barrel, while Brent North Sea crude climbed 74 cents to $77.29.[29]
OIL rose today to more than $US78 a barrel, buoyed by positive U.S. economic indicators, although concerns over the sustainability of the economic recovery lingered.[3] Earlier Tuesday, it rose as high as $78.46 as investors welcomed new U.S. manufacturing and construction figures as positive signs of an economic recovery.[6] STAFF WRITER 10:39 HRS IST Singapore, Nov 2 (AFP) Oil was slightly higher in Asian trade today but investors remained cautious over the outlook for energy demand as worries remain over the strength of the U.S. economic recovery, analysts said.[32] For reprint rights: Times Syndication Service This site is best viewed with Internet Explorer 6.0 or higher, or Firefox 2.0 or higher, at a minimum screen resolution of 1024x768. Oil fell in Asian trade on Wednesday after overnight gains in commodities buoyed by gold's record breaking price surge, analysts said, as investors turned their focus on to a key U.S. inventory report.[28] The sustainability of the apparent recovery is a key issue among analysts and investors alike considering the current inventory situation in America. The U.S. currently has stockpiled more than 29 million more barrels of oil than this time last year.[26]
Oil often weakens when the dollar rises, partly because crude is priced internationally in the U.S. currency. The dollar is also widely seen as a gauge of risk appetite, rising when investors seek safe havens and move away from more volatile assets such as oil.[25] Crude investors were earlier encouraged by signs of strength in the U.S. economy, which could help boost oil demand.[6]
Crude runs, or demand for crude oil at U.S. refineries, were off 242,000 bpd.[23]
The API said commercial crude oil stocks fell 3.3 million barrels as imports dropped in the week to Oct. 30, versus expectation for a 1.4 million-barrel rise.[31] The American Petroleum Institute said that for the week ending Oct. 30, crude stockpiles fell by 3.3 million barrels, gasoline stocks rose by 501,000 barrels and distillate supplies increased by 1.8 million barrels.[16]
Industry group American Petroleum Institute said late on Tuesday that U.S. gasoline stocks rose by 501,000 barrels last week against forecasts for a 300,000-barrel increase, while distillate supplies increased by 1.8 million barrels versus predictions for a 1 million-barrel decline.[31] A Reuters poll ahead of weekly inventory data showed forecasts for a 1.5 million barrel increase in crude stocks, a 500,000 barrel decline in distillate supplies and a 300,000 barrel build in gasoline stocks.[17] A Reuters survey of analysts on Monday yielded a forecast for crude stocks to have risen 1.5 million barrels last week and for distillate supply to have slipped 500,000 barrels and gasoline stocks to have risen 300,000 barrels.[12]
Gasoline (petroleum) stocks are seen falling 100,000 barrels while distillates, which include diesel and heating oil, are tipped to decline by one million barrels.[28] Stockpiles of distillates, which include diesel and heating oil, were up 1.8 million barrels, versus forecasts of a fall of 1 million barrels.[23]
Oil prices fell to near $77 a barrel Tuesday, affected by sagging equity markets and the dollar's gains on the euro. [6] NEW YORK: Oil prices leapt on Tuesday as commodities gained a boost from gold, which struck an all-time high above 1,000 dollars an ounce as markets fret about the prospects of global recovery from recession.[33] LONDON (Dow Jones)--Crude futures lost ground Tuesday amid across-the-board losses in European equity markets and concerns over the weak fundamentals of global oil market. With a lack of market-moving news on fundamentals, the crude oil market continued to take its cue from equity markets, which saw hefty losses in Europe after a bout of negative news, particularly for financial companies.[21] Crude oil recovered some of its losses from Friday's sharp declines - December Globex futures rose around 1% this morning.[26]
The Economy News: Crude oil prices are down this morning ahead of the Fed statement on Wednesday and nonfarm payrolls data on Friday will likely to be the primary influence in the world markets offering guidance for the next direction in crude.[18] Positive economic data from the U.S. pushed crude and heating oil prices upward on Monday.[27]
"In the real world of oil nothing has really changed," said Olivier Jakob of Petromatrix in Switzerland, adding that oil prices are at the mercy of stocks and the U.S. dollar's exchange rate.[6] Oil prices rose this evening after falling earlier in the day as European stock markets slid and the dollar strengthened.[29] STAFF WRITER 1:43 HRS IST London, Nov 3 (AFP) Oil prices rose today after falling earlier in the day as European equities slid and the dollar strengthened, traders said.[11] LONDON: World oil prices retreated Tuesday on profit-taking and as the market was rattled by sliding European equities and the strengthening dollar, traders said.[10]
In London, Brent North Sea crude for December climbed 1.56 dollars to settle at 78.11 dollars. "Oil was down this morning and all of a sudden gold took off like a rocket, and then oil took off as well," said Ellis Eckland, an independent analyst. "Oil is following the lead of gold as a hard asset," he explained. [33] However analysts said crude likely fell on Wednesday because of a stronger U.S. currency, which makes dollar-priced crude more expensive for holders of other foreign units. "The U.S. dollar has gotten a little stronger this morning and that may have something to do with crude edging down," said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.[28] Crude futures made ground after the U.S. dollar weakened from $1.4768 against the euro to $1.4787 in.[20]
U.S. crude for December tumbled $1.58 per barrel to a low of $76.55 after hitting an early high of $78.46 and settling up $1.13 on Monday.[25] Brent North Sea crude for December delivery settled $US1.22 higher at $US76.42 per barrel.[9] Brent North Sea crude for December delivery gained 19 cents to $76.74.[34] Brent North Sea crude for December delivery was 40 cents lower at 77.71 dollars.[28]
Brent North Sea crude for December climbed 74 cents to 77.29 dollars. "The moves higher are still very aggressive but they are now running into general drifting lower during periods," said Capital Spreads analyst Simon Denham.[11]
'Oil continues to hold above 77 bucks (for New York crude) but the attempted rally yesterday ran into quicksand,' said analyst at Capital Spreads Simon Denham on Tuesday.[10] The euro fell to $1.4645 in European trade, down from $1.4753 late Monday in New York.[6] The price of gold reached a new record in New York after the International Monetary Fund sold 200 tonnes of gold to India'''s central bank amid speculation that India could buy even more of the precious metal.[5] Gold swept to a record high above $1,080 per ounce on Tuesday, defying dollar strength, as the International Monetary Fund's 200-tonne sale of gold to India's central bank boosted sentiment toward the metal.[13] Gold stayed near a record high above $1,080 per ounce hit the previous day, defying dollar strength, when the International Monetary Fund's 200-tonne sale of gold to India's central bank enhanced sentiment toward the metal.[31]
European shares fell around 2 per cent to a one-month low on Tuesday, with banks suffering after poor results from UBS and as news of a shake-up in the UK banking sector made investors wary of risky assets. [25] Oil fell as much as 2 per cent earlier today on the announcement that the Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc received a second bailout from UK taxpayers, signaling that the global economy may take longer to recover from the worst recession since the 1930s.[2]
Prices dropped 3.6 per cent on October 30 after a report showed U.S. consumer spending in September fell for the first time in five months.[1] Oil futures were pressured by a report showing U.S. consumer spending fell in September for the first time in five months.[7]
Although the U.S. Economy was hailed as being 'out-of-recession' after Thursday's better than expected third quarter GDP for 2009 saw America achieve growth of 3.5%, other indicators however implied a less emphatic return to grace, with contrasting economic reports implying that consumer spending fell during the same period, as did production.[26] While data released last Thursday showed the U.S. has emerged from a prolonged recession, consumer spending, which accounts for two-thirds of the nation's economic activity, fell in September.[32]
The U.S. said Friday consumer spending in the world's biggest economy and energy user fell for the first time in five months in September.[35]
New orders received by U.S. factories rose 0.9 percent in September, stronger than expected, while inventories continued to shrink, the Commerce Department said. The U.S. Federal Reserve began a two-day meeting on Tuesday that was expected to end with a reaffirmation that policies to support the economy, such as holding interest rates where they are, will stay in place for some time, even as signs of recovery mount.[16] Losses were kept in check as gold held near record highs and traders awaited separate U.S. government oil inventory data, as well as a Federal Reserve statement on interest rates and the economy -- all due out later on Wednesday -- before making further moves.[31] Positive Chinese manufacturing data released on Sunday provided a stabilising influence following the previous sessions 3% fall. Worse-than-expected U.S. Consumer Confidence pressured both the oil and equity markets as the U.S. Dollar recovered.[26] Oil rose further in Asian trade today, underpinned by a better-than-expected expansion in the U.S. manufacturing sector, analysts said.[34] The U.S. manufacturing sector grew in October for the third consecutive month and at a faster rate than was expected, according to a report from the Institute for Supply Management released on Monday. Pending sales of previously owned U.S. homes unexpectedly rose in September to their highest level in nearly three years ahead of expiration of a tax credit for first-time buyers, the National Association of Realtors said.[7]
The two contracts closed firmer on Monday, buoyed in part by the U.S. manufacturing expansion. The Institute of Supply Management said on Monday, its factory index, also known as the purchasing managers index, grew for a third consecutive month in October with a reading of 55.7 per cent. It was stronger than market expectations for a reading of 53 per cent and the highest rate of growth since April 2006.[34]
Crude oil was little changed overnight, reversing an earlier gain of as much as 2.2 per cent.[1] Much of crude oil's price movement may be attributed to the negative correlation to the dollar.[19] Crude oil prices were up Tuesday after falling in early trade on indications from the UK banking sector that the recession might still have a way to go before it ends.[5] Crude oil prices enjoyed a slight rebound after the previous session significant drop but found good resistance just short of the 14 day moving average.[18]
NYMEX - World oil prices rallied on Monday, partly boosted by positive manufacturing data from China.[9] Futures advanced yesterday as data showed global manufacturing expanded, signaling that fuel demand may increase.[18] Late-session trading was choppy, and at one point crude futures gave up earlier gains as Wall Street sold off after rallying in the morning on the upbeat economic data.[17] Staying supportive in late trading, the dollar slid as the latest economic data dampened safe-haven demand for the greenback.[17]
Oil prices have been falling during today's trading as a significantly stronger dollar has weighed on the market.[19] Oil prices tend to fall when the U.S. currency rises and makes dollar-denominated commodities less appealing to international investors.[6] U.S. stocks stumbled after Morgan Stanley downgraded the semiconductor sector and a shake-up at two big British banks prompted investors to sell financial shares.[13] U.S. stocks fell, weighed by technology and financial shares, as Morgan Stanley downgraded the semiconductor sector and amid the British banks shake up and poor UBS results.[14]
U.S. stocks opened weaker as a deal by Warren Buffett's Berkshire Hathaway to buy railroad Burlington Northern failed to offset UBS results and the shake-up at the two British banks.[12]
World stocks hit a four-week low, helping boost the dollar as poor results from UBS UBSN.VS and a shake-up of UK banks Lloyds ( LLOY.L ) and Royal Bank of Scotland ( RBS.L ) prompted investors to cut back on risk.[14] The dollar hit a one-month high against a currency basket as investors retreated from risky assets on jitters over banks.[12] The U.S. Dollar strengthened as Traders and investors moved back into the perceived safety of the Dollar out of higher yielding assets.[26]
The U.S. dollar rose to a one-month high against a basket of currencies as concerns about the banking sector and weaker equities boosted the greenback's safe-haven appeal.[13] The advance was supported by a weaker U.S. dollar against the euro showing that the inverse relationship between crude and the greenback is still intact.[18]
Traders cited a strengthening dollar, which makes dollar-priced crude more expensive for buyers holding foreign currencies, for dampening oil demand.[11] Near the close, oil market bulls took over to again lift gains for front-month December crude to more than $1.[17] Crude's $76.55 intraday low was 1 cent under Monday's low trade and technical support was charted at $76.20 a barrel.[13] Selling stopped after futures fell to $US76.55 a barrel earlier today, the lowest intraday price since October 15.[2] The euro fell about a full percent, hitting a four-week low of $1.4627 EUR= according to Reuters data.[12] The December 2014 contract settled Tuesday at $91.96, up 50 cents, or 0.55 percent.[16] The spread between the current front month and the five-year forward crude contract CLc61 was at $13.33, based on the December 2014 contract Monday settlement at $91.46.[14] The spread between the current front month and the five-year forward crude contract CLc61 finished at $13.33, expanding from $12.84 on Friday.[17]
Natural gas for December delivery lost 3.4 cents to $4.79 per 1,000 cubic feet. [6] Gasoline for December delivery dropped 2.22 cents to $1.9681 a gallon.[6]
During the Asian and European trading sessions, the commodity fell 1.3%, dropping to a low of $77.'' [19] Trading sources pointed to market caution ahead of oil inventory data and as the Federal Reserve starts a two-day meeting on Tuesday and awaiting the monthly employment report from the United States on Friday.[14] Oil markets on Tuesday were anticipating weekly oil inventory reports and Friday's U.S. monthly employment report as well as results of the Federal Reserve's two-day meeting that started on Tuesday.[13]
Oil gained as the Institute for Supply Management said U.S. manufacturing grew at the fastest pace in more than three years.[1]
Oil field services providers Cameron International Corp ( CAM.N ) and Rowan Companies Inc ( RDC.N ) said quarterly profits were better than expected with an uptick in drilling activity, and said the outlook for the sector is improving with a recovery in commodity prices. Mexico's oil exporting ports Dos Bocas and Coatzacoalcos reopened on Tuesday morning, after bad weather shut the ports this weekend, the government said.[16] When prices do not drop after reaching a new low, technical traders see it as a sign to purchase oil.[2] Among the oil majors, Exxon Mobil ( XOM Quote ) was down 0.9%, while Chevron ( CVX Quote ) was slipping 0.3%. -- Written by Sung Moss in New York Follow TheStreet.com on Twitter and become a fan on Facebook.[24] Over the next month or so, we may some sell-offs in equities as people take profits for the year," said Stephen Maloney, Managing Consultant, Enterprise Risk Management, Towers Perrin in New York.[14]
Oil had earlier followed gold's lead as the precious metal soared to new record highs Tuesday above 1,080 dollars an ounce after the International Monetary Fund said it sold 200 tonnes of gold to India for 6.7 billion dollars. [28] The market also digested news that Iraq signed a deal on Tuesday with British energy giant BP and China's CNPC to almost triple oil production at a giant southern oilfield.[33] BP (LSE: BP) was in the lead with a 1.8% climb, while fellow supermajor Shell (LSE: RDSA) rose marginally, as did Petrofac (LSE: PFC). Other FTSE 100 constituents Cairn Energy (LSE: CNE) and BG Group (LSE: BG) added 1%. Midcap Dragon Oil (LSE: DGO) outperformed the sector with an 8.7% rally after Dubai based oil company ENOC agreed to acquire its remaining share capital.[26] Fellow FTSE 250 constituents were in decline with Dana Petroleum (LSE: DNX ) posting a marginal loss and Herigate Oil (LSE: HOIL) shedding 2%. Kazakhstan operating Max Petroleum (LSE: MXP), which commenced the drilling on its ZMA-AN2 well in the Zhana Makat field, and energy investor Xtract Energy PLC (AIM: XTR) led the juniors with gains of 5.5% and 4.5% respectively.[26] With crude and fuel stockpiles still higher than average, investors will be eyeing weekly inventory data on Tuesday and Wednesday. The American Petroleum Institute is set to release its figures on Tuesday afternoon and the government's Energy Information Administration will issue figures on Wednesday morning.[24]
Analysts also said there might be some traders in long positions booking some profit ahead of the issue of U.S. stockpile data from the Energy Information Administration (EIA).[31] The dollar extended losses against the euro to trade at session lows after the round of U.S. economic data.[7] The accompanying Fed rate statement will proved significant volatility as the expected statement may include future U.S. interest rate policy, a key factor when valuing the dollar.[19]
In the early going, crude futures rose after HSBC's China Purchasing Managers' Index rose to an 18-month high in October of 55.4 from 55.0 in September.[17] "Some of today's losses can be contributed to the API data, but the real focus is on the EIA numbers due out later," said Tomokazu Amano, an analyst at Mitsubishi Corp Futures & Securities in Tokyo.[31] "The API data showing a surprise drawdown in crude inventories appears not to add up, with crude runs and capacity utilization down. API says imports were down, but mostly everybody was expecting these to be up," said Phil Flynn, analyst at PFGBest Research in Chicago.[16]
Tomorrow traders will be looking for two key market events; the release of the weekly crude oil inventory numbers and the FOMC rate statement. [19] The oil market was dragged lower as European stock markets tumbled and Britain unveiled a major shake-up of the banking industry, analysts said.[10] Keep an eye to the result of the change in gasoline stocks. The markets have been focusing on this data piece when evaluating the worthiness of this economic report.[19]
The number of contracts to buy previously owned homes in the U.S. rose in September for an eighth straight month as Americans rushed to meet a deadline for a home-buyer credit, according to a report today from the National Association of Realtors in Washington.[1] A day earlier, the Commerce Department said the U.S. economy grew at a seasonally adjusted 3.5 per cent in the September quarter from the previous three months.[35]
Today'''s average retail heating oil price in the Northeast is 4 cents higher than Monday'''s average price.[27] Additionally OPEC identified that internationally approximately 125 million additional barrels of oil are currently stored in offshore tankers.[26] "Gold and oil have been moving in the same direction recently," said Adam Sieminski at Deutsche Bank. "The underlying traditional fundamentals, like supply or demand, have been getting a little bit better but probably not enough to account for the day-to-day variation which has been driven more by technical factors," he said.[33] "There may be a central bank providing liquidity to the market" that is benefiting commodities, the analyst suggested, noting that commodities are "alternative forms of currencies, especially gold." Inflation fears stoked by the massive liquidity pumped into the financial sector by central banks recently have pushed investors toward commodities to protect the value of their assets.[33]
Meanwhile global equity markets slid today as sentiment wobbled amid doubts about the prospects of a global recovery from recession and ahead of a U.S. Federal Reserve interest rate decision. [11]
SOURCES
1. Oil flat after traders reverse early gains
2. Oil evades two-week low
3. Oil rises above $US78 a barrel | resourceINTELLIGENCE
4. Oil extends gains despite strengthening dollar_English_Xinhua
5. Crude up as gold hits new record high price
6. The Associated Press: Oil down to near $77 as stocks fall, dollar gains
7. NYMEX-Crude bounces on U.S., China economic data | ETFs | News | Reuters
8. OIL FUTURES: Oil Up On US Factory Orders; Commodity Buying - WSJ.com
9. Oil prices boosted by manufacturing data
10. Daily Times - Leading News Resource of Pakistan
11. fullstory
12. NYMEX-Crude dips on dollar ahead of supply data | Funds | News | Reuters
13. NYMEX-Crude up on technicals, factory data, gold | Markets | Markets News | Reuters
14. NYMEX-Crude seesaws eyeing dollar, factory orders | Markets | Markets News | Reuters
15. OIL FUTURES: Nymex Crude Down; Tracks Dollar Strength - WSJ.com
16. NYMEX-Crude little changed after surprise API draw | Funds | News | Reuters
17. NYMEX-Crude ends above $78 as economic data lifts | Funds | News | Reuters
18. Oil prices down ahead of economic news - Economic news for economic decision makers
19. Crude Oil Prices Fall on Stronger Dollar
20. OIL FUTURES: Nymex Crude Moves Higher As US Dollar Weakens - WSJ.com
21. OIL FUTURES: Crude Lower On Equities; Focus On US Oil Data - WSJ.com
22. UPDATE:OIL FUTURES:Oil Above $79/Bbl On Upbeat Factory Orders - WSJ.com
23. UPDATE 1-U.S. crude stocks fall sharply, products up-API | Markets | Reuters
24. Crude Oil Lower on Strengthening Dollar | Local Energy Update | Financial Articles & Investing News | TheStreet.com
25. Oil slips below $77
26. Proactive Investors UK - Crude Oil Rebounds, Dragon Oil, Petrofac and Cairn respond
27. Heating Oil Price Trend for November 3: +4'' | HeatingOil.com
28. Oil slides in Asian trade ahead of US energy report - International Business - Biz - The Times of India
29. RT' Business: Oil prices bounce after earlier falls
30. RTTNews - Forex News top stories, Forex Trading, European Market Update, Currency Market Update, Forex trading.
31. Oil dips towards $79 after U.S. fuel stock rise | Business News | Reuters
32. fullstory
33. channelnewsasia.com - Oil prices surge in wake of gold's record high
34. Oil extends gains in Asian trade
35. Oil higher in Asian trade but investors cautious | mydigitalfc.com
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