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NEW YORK (Reuters) — Oil rose to over 69 a barrel Tuesday as stronger-than-expected earnings results lifted equities and boosted optimism about the economy.U.S. crude for September delivery rose 2.44 to settle at 69.19 a barrel with further support coming from the weaker dollar. “We are just taking our cues from the S&P and the dollar,” said Stephen Schork, editor of The Schork Report in Villanova, Pa.Two major retailers, Home Depot (HD, Fortune 500) and Target (TGT, Fortune 500), beat Wall Street expectations on Tuesday, lifting markets.The results offset government data that showed that U.S. housing starts and permits fell unexpectedly in July after increasing in June.Investors were also eyeing U.S. oil inventory data set to be released later Tuesday and Wednesday.An updated Reuters poll of analysts predicted crude stocks rose by 1.3 million barrels, the fourth weekly build in a row, as higher imports offset a slight increase in refinery activity.Distillate stocks were seen up 600,000 barrels and gasoline stocks down 1.1 million barrels.The Energy Information Agency will release its weekly inventory report Wednesday with analysts expecting more signs of weak U.S. demand. The American Petroleum Institute will release its inventory data Tuesday at 4:30 p.m. ET.Traders were also keeping an eye on storms in the Atlantic Basin, although there was no immediate threat seen to U.S. oil installations in the Gulf of Mexico, home to a quarter of U.S. oil output and 15% of its natural gas production.Forecasters said tropical rainstorm Ana may regain strength over the warm water of the eastern Gulf of Mexico later this week, but has little chance of becoming a hurricane over the next day or so as it crosses Haiti and Cuba.Hurricane Bill, the first hurricane of the 2009 Atlantic season, headed west-northwest over open ocean Tuesday, but it was uncertain whether it could threaten the northeast U.S. coast, far from Gulf Coast oil installations, by Sunday.

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NEW YORK (Reuters) — Oil rose after data showed the U.S. economy shrunk less than expected in the second quarter, raising hopes the recession was easing.U.S. light crude traded up 87 cents to 67.81 a barrel, reversing earlier losses that sent prices as low as 64.96. U.S. gross domestic product fell at a 1.0% annual rate, the Commerce Department said, below analysts expectations for a 1.5% drop.With the contraction in the second quarter, U.S. GDP has fallen for four straight quarters for the first time since government records started in 1947.”Crude futures are up as the dollar is getting trashed while equities are starting to pick up some steam,” said Tom Knight, trader for Truman Arnold.0:00
/3:08Regulating oil marketsU.S. stocks traded higher after the data, while the dollar fell as investors pushed into riskier plays.Optimism that demand could rise with an economic turnaround has helped lift crude prices from below 33 a barrel in December.Weak demand sent oil plunging from record highs over 147 a barrel last July, prompting the Organization of the Petroleum Exporting Countries to cut supplies.U.S. imports of crude from OPEC kingpin Saudi Arabia fell 37% versus year-ago levels in May, according to government data released late Thursday.News that British oil major BP shut Europe’s second largest oil refinery after a power outage as well as the shut down of gasoline units in France and Germany by Total and a joint venture including Shell also bolstered prices.Supplies concerns were further stoked on news Sunoco shut down a gasoline unit at its Girard Point plant in Philadelphia for work.

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NEW YORK (Reuters) — The dollar rose broadly Wednesday, as a sell-off in Shanghai’s stock market and a weaker-than-expected U.S. durable goods report revived safe-haven demand for the greenback.Falls in U.S. equities and a 5% slide in China’s benchmark stock market, the Shanghai Composite Index, cut investors’ appetite for risk. That helped the dollar recover from its lowest level of 2009 and pushed the euro to a two-week low near 1.40.”There’s an awful lot of focus on what’s happened in China overnight in terms of equities being lower due to some new restrictions, which looks like may limit some growth potential,” said Camilla Sutton, senior currency strategist at Scotia Capital in Toronto.”We’ve had a tremendous run across many asset classes. I think the market is taking a healthy breather,” she added.In midday trading in New York, the dollar index, which measures its performance against a basket of currencies, rose 0.8% to 79.487, rebounding from a 2009 low of 78.315 set the previous day.The euro dropped 1% against the dollar to 1.4036 after hitting 1.4016, its lowest since July 15. On Tuesday, the single currency rose as high as 1.4303, its highest since early June, according to Reuters data.Adding to the dollar’s strength was a government report showing new orders for long-lasting U.S. manufactured goods fell more sharply than expected in June, which further weighed on risk sentiment.”This has translated into a weak equity market and a pullback from dollar shorts in the currency markets with the risk-off scenario playing out,” said Andrew Busch, global FX strategist at BMO Capital Markets in Chicago.The euro was last down 0.3% at ¥133.54, while the dollar rose 0.6% to ¥95.12.Beige Book aheadThe Commerce Department earlier said U.S. durable goods orders fell 2.5% in June, the largest drop since January. This was worse than market expectations for a 0.6% decline.Growing optimism about the global economic outlook had pressured the U.S. currency in recent weeks and fueled a rally in stocks, commodities and higher-yielding currencies.But hopes the global economy was recovering were dented on Tuesday after data showed a drop in U.S. consumer confidence, while a sharp drop in oil prices weighed on commodity-linked currencies such as the Australian and Canadian dollars.The Australian currency fell 1.4% against the dollar to US0.8158, while the New Zealand dollar declined 0.6% to US0.6539.The Canadian dollar, which is particularly sensitive to oil prices, also fell with the U.S. dollar up 0.8% at C1.0884.Investors awaited the Federal Reserve’s release of its Beige Book, an anecdotal report on economic conditions, later on Wednesday, while this week’s focus remains on U.S. second-quarter gross domestic product figures on Friday.The market also awaited the results of a Treasury auction of 39 billion in five-year notes later on Wednesday as part of a record 115 billion of issuance this week. This follows Tuesday’s auction of 42 billion of two-year notes which did not meet strong demand.

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NEW YORK (Reuters) — The dollar rebounded from its lowest level this year versus a basket of currencies Tuesday as weaker U.S. consumer confidence data rekindled worries about the economy, enhancing the greenback’s safe-haven allure.The yen also rallied across-the-board as U.S. stocks fell and investors dumped riskier assets.U.S. consumer confidence fell more than expected in July, Conference Board data showed, recording its second consecutive decline as sentiment remained hampered by a difficult job market.”Consumers are feeling no love in this recovery,” said Boris Schlossberg, director of currency research at GFT Forex in New York. “All this suggests is that the critical assumption by the recovery bulls that consumption will come back as the recovery takes hold is faulty.”0:00
/3:17Weak dollar worriesThe ICE Futures U.S. dollar index, which measures the performance of the greenback versus a basket of six currencies, rose 0.3% to 78.893It had earlier fallen to a low of 78.315, the lowest since December.The euro fell 0.5% to 1.4173, having earlier climbed as high as 1.4303, its highest since early June, according to Reuters data.”We’ve seen some rolling over in the euro/dollar with some people returning to dollars because consumer confidence was a bit disappointing,” said Brian Kim, currency strategist at UBS in Stamford, Connecticut.”Fundamentally, there’s cause for concern even though some of the data has been better.”The dollar fell 0.7% to ¥94.56 while the euro dropped 1.2% to ¥133.92.Traders awaited the outcome of a sale of 42 billion of two-year U.S. government paper later in the day. A record 115 billion in new debt is being auctioned this week, including 96 billion in new coupon securities.

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NEW YORK (Reuters) — Oil rose above 63 a barrel Friday, on track for its first weekly gain in a month, after U.S. housing data sparked optimism that a battered sector of the economy may be primed for recovery.Oil rose for a fifth day and was on track for a gain of 5.6% on the week, partially reversing its 10% plunge last week.A U.S. government report Friday showed construction of new homes and building permits in the United States rose more than expected in June, signaling a potential economic recovery.The housing data Friday added to better-than-expected U.S. corporate earnings and robust Chinese economic growth figures earlier this week.Renewed, violent protests over contested presidential elections in crude supplier Iran on Friday, and a tropical wave in the Central Atlantic that posed a small threat of becoming a hurricane, also spurred oil buying ahead of the weekend.”Oil is rebounding because there’s a sense we have probably overplayed pessimism about the economy lately, and prices had fallen too far,” said Phil Flynn, an analyst at Foggiest Research in Chicago.”Increased tension in Iran and a tropical wave (in the Atlantic) are also considerations. People don’t want to be caught short over the weekend.”U.S. crude oil for August delivery was up 1.76 to 63.78 a barrel.Oil rose in spite of a 0.3% strengthening of the U.S. dollar against a basket of foreign currencies. A strengthening dollar often weakens oil prices, which had fallen in earlier trade, since it makes crude more expensive in most regions. The dollar pared some of its earlier gains, after rising 0.4% earlier.Global stocks rose on Friday, by 0.7%, and touched a one-month high in earlier trade. Bank of America (BAC, Fortune 500) posted lower earnings but Citibank (C, Fortune 500) rose after a one-off gain to return a profit, following strong profits from banking peers this week, which pushed equities higher.In China, refiners in the world’s No. 2 energy consumer boosted production by 6% in June to a record high after a rise in domestic motor fuel prices aided margins, although higher inventories and rising exports suggested domestic demand was lagging.Data earlier this week showed Chinese growth sped up to hit 7.9% in the second-quarter, fueled by state spending and bank lending.Oil prices are down 7 a barrel since early July, partly reversing last quarter’s 40% surge on concerns over energy demand. In the United States, distillate inventories hit a fresh 25-year high last week, while refiners have been running at lower-than-normal rates for the summer season.

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NEW YORK (Reuters) — The dollar dipped against the yen but edged up against the euro Tuesday as U.S. retail sales and producer price data beat expectations but anxiety about U.S. corporate earnings kept investors cautious.A 33% rise in Goldman Sachs Group’s (GS, Fortune 500) quarterly earnings also lifted some spirits, though market participants remained cautious ahead of reports later this week from other banks, including Citigroup (C, Fortune 500) and JPMorgan Chase (JPM, Fortune 500).The stronger-than-expected U.S. data came with some caveats, traders said. Some noted much of the 0.6% gain in retail sales was driven by higher gas prices.”This points to underlying weakness in the retail space despite the so-called stimulus from the U.S. government,” said Jacob Oubina, senior currency strategist at Forex.com in Bedminster, N.J. “The euro remains heavy below 1.40.”The euro was last down 0.2% at 1.3956 while the dollar was flat at ¥92.96. The euro was down 0.2% at ¥129.65.Lackluster economic data from the 16-country euro zone and its biggest economy, Germany, also tempered hopes for a robust recovery there and limited euro gains.A monthly poll of economic sentiment from German think tank ZEW defied upbeat market expectations and fell for the first time since October.”The stabilization of the German economy is underway but it will not be as strong as latest data could make us believe,” said Carsten Brzeski, economist at ING Financial Markets.Elsewhere, slightly higher investor risk appetite lifted the Australian dollar, up 0.7% at 0.7880 , and the pound, up 0.4% at 1.6299. Strong Australian business confidence data and firmer-than-expected reports on UK retail sales and home prices added to demand for both.Separate United Kingdom data showed inflation below the Bank of England’s 2% target in June, while incoming monetary policy committee member Adam Posen said the central bank had not ended its quantitative easing program.”Economic data still seems like two steps forward and one step back in the march toward a permanent upturn and as such currencies are likely to remain jumpy for quite some time,” analysts at Calyon said in a note.U.S. shares rallied more than 2% on Monday on hopes that U.S. banks’ earnings results may outpace expectations.But while Goldman’s earnings did come in better than expected, some traders said expectations had been pumped too high on Monday by an influential analyst’s bullish prediction, and that caused a less than enthusiastic reaction in markets.

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NEW YORK (Reuters) — The dollar rose against the euro and the yen on Tuesday after a report showed a smaller-than-expected dip in U.S. home prices in April, suggesting some stabilization in the housing sector.Analysts said the dollar is beginning to benefit from an upbeat view on the prospects of a nascent global economic recovery, as well as from gains in stocks and commodity prices.”The dollar is starting to react positively to good economic news which is a bit of a sea change from recent weeks,” said Andrew Wilkinson, a senior market analyst at Interactive Brokers, in Greenwich, Connecticut. “Typically recovery would harm the dollar.”According to Standard & Poor’s/Case Shiller home price indexes, prices of U.S. single-family homes of 20 metropolitan areas dipped only 0.6% in April from March, after a 2.2% decline the month before. The dollar reversed earlier losses against the euro and the yen and advanced after the report. The euro touched a session low of 1.4059 after the data, but last traded little changed at 1.4074. The dollar was last trading 0.2% up against the yen at 96.33 yen , from about 96.13 earlier.”Based on the Case-Shiller reports, traders are taking comfort in the fact that the overall package of government measures is working,” said Wilkinson. “As the economy moves away from its nadir, the dollar is being bought.”

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LONDON (Reuters) — Oil rose to 71 a barrel Friday after Nigerian rebels said they blew up a wellhead in a Royal Dutch Shell oilfield and as equity markets rallied on optimism the global recession was easing.The move in oil followed a 2% gain on Thursday and put it on course for a 7% gain this week, buoyed by prospects for an economic recovery that has lifted prices from below 40 over the past four months.The release of the June consumer sentiment index by the Reuters/University of Michigan Surveys of Consumers later Friday was expected to reflect a mildly improving outlook for the U.S. economy, auguring well for ailing world energy demand.Although U.S. jobless claims last week rose, first-quarter gross domestic product shrank slightly less than estimated, suggesting the downturn may be easing.0:00
/4:30Gen. Clark: ‘Wind is ready to go’The benchmark August U.S. crude oil contract was up 80 cents per barrel at 71.03, having hit a high of 71.23, up 1.Nigeria: Nigeria’s Movement for the Emancipation of the Niger Delta (MEND) said it attacked the wellhead in the Afremo oilfield because the military had gone on a “punitive expedition” in Delta state shortly after President Umaru Yar’Adua announced an amnesty offer for rebels.The military denied carrying out any such campaign. Independent confirmation of the details of the attack was not immediately available. Shell has said it is checking its operations for damage from Sunday’s attacks.Afremo was one of the sites MEND also said it had attacked in a triple raid on Sunday. It described the field as being 14 miles from an export terminal through which crude oil from Shell’s Forcados fields is pumped.Pipeline bombings, attacks on oil and gas installations and the kidnapping of industry workers over the past three years have prevented Nigeria from pumping much above two thirds of its installed oil output capacity of 3 million barrels per day.The intensity of recent attacks in Nigeria have taken the oil market by surprise and tightened West African oil supplies.”Attacks by the MEND have forced foreign oil companies to shut at least 133,000 barrels per day of Nigerian production in the last month,” said MF Global in its daily note to clients.Iranian tension has also supported oil. About 20 people have died in protests after Iran’s June 12 presidential election, the worst unrest since the 1979 Islamic revolution.Other factors: Fueling oil’s rise, Exxon Mobil said its huge Baytown refinery suffered an operational glitch that triggered flaring, sparking worries the largest U.S. oil refinery could tighten gasoline stockpiles during this summer’s peak demand driving season.Firmer Asian stocks on the back of Wall Street’s rally also lent support, with shares outside Japan climbing 1.4% and Japan’s Nikkei up 0.8%.European shares advanced in early trade.A further boost came from a fall in the dollar against most major currencies on Friday as investors shifted funds back into risky assets after the Federal Reserve this week appeared to confirm it would keep interest rates low for a while.The Reuters/University of Michigan final June consumer sentiment index, due at 9:55 a.m. ET, is expected to show a reading of 69 compared with 68.7 in the May report, a Reuters poll of economists showed.

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LONDON (Reuters) — Oil rose toward 70 a barrel on Thursday after Nigeria’s main militant group shut down one of Royal Dutch Shell’s pipeline junction points, heightening concerns about supplies from the region.U.S. crude futures for August gained 84 cents to 69.51 a barrel, having earlier come within 25 cents of 70 a barrel. In the latest in a string of attacks in Nigeria, Africa’s biggest oil producer, the Movement for the Emancipation of the Niger Delta (MEND), said it had sabotaged the Billie-Krakama pipeline in Rivers State, which supplies one of the country’s main export terminals.Attacks from MEND have forced foreign oil companies, including U.S. oil major Chevron and Italy’s Agip, to shut at least 133,000 barrels per day of oil production in the last month.Shell said it had shut down one of its pipeline junction points on Thursday but declined to say whether any oil production had been affected.Analysts said the effect on prices had been subdued with plenty of spare supply capacity available around the world, as the global recession has cut demand for oil.”The Nigerian attacks have definitely been supportive, but the impact is less in the current economic environment as there’s plenty of spare capacity in the oil industry right now,” Andrey Kryuchenkov, an analyst at VTB Capital in London, said.”When we were rallying towards 150 a barrel last summer a small sneeze in Nigeria would send the market rallying at least 2 a barrel. There’s less of a geopolitical premium in prices now.”Falling demand for oil sent oil prices crashing from record highs close to 150 a barrel last July towards 30 a barrel at the turn of the year. Since mid-April, however, prices have risen sharply on prospects for an economic recovery.A Reuters poll of industry analysts showed oil prices are expected to average more than 70 a barrel in 2010, compared with the latest forecast average of 56.59 for this year.Rising inventoriesOn Wednesday, U.S. government data showed stocks of gasoline in the world’s largest energy consumer rose 3.9 million barrels last week, exceeding analysts’ predictions. Stocks of distillates — such as diesel and heating oil — have risen to 10-year highs due to the recession.But prices took support from a large drop in stockpiles of crude oil, which declined by 3.8 million barrels last week.The U.S. economy shrank slightly less in early 2009 than previously thought, the government reported on Thursday, though there was widespread weakness in activity and demand was soft. Gross domestic product dropped 5.5% in the first quarter, from 6.3% in the last quarter of 2008.Separately, the Labor Department said the number of workers filing new claims for jobless benefits unexpectedly rose last week by 15,000 to a seasonally adjusted 627,000 — a measure of the strain still faced by hard-pressed consumers.Oil pulled back slightly falling the jobless claims report, with the dollar strengthening as investors appetite for risk was curbed. A stronger dollar makes commodities priced in the greenback more expensive for holders of other currencies.

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LONDON (Reuters) — Oil rose above 68 a barrel on Tuesday, reversing earlier losses, supported by a weaker dollar and ahead of inventory data expected to show a fall in crude stocks.U.S. crude for August was up 58 cents at 68.08, off an earlier low of 66.37. U.S. crude for July delivery expired on Monday, settling down 2.62 at 66.93 a barrel.The dollar fell more than 0.5% against a basket of currencies on Tuesday. A lower dollar can strengthencommodities denominated in the currency.0:00
/4:36T.Boone Pickens: 300 oilThe market awaited U.S. weekly inventory data from the American Petroleum Institute due later on Tuesday and U.S. government oil stocks figures on Wednesday for clues on the demand outlook for the world’s top energy consumer.A Reuters poll of analysts ahead of the government inventory data forecast crude stocks fell by 1.3 million barrels last week on lower imports, while gasoline stocks and distillates, including heating oil and diesel fuel, were seen rising.The API will release its weekly stockpile data at 4:30 p.m. ET Tuesday, while the U.S. Energy Information Administration will release its report on Wednesday at 10:30 a.m. ET.

Source:CNN