| Oil price hits new record
WORLD oil prices hit a new record of $US101.32 ($110.48) a barrel in Asian trading today on renewed concerns over global crude supplies, dealers said. New York's main oil futures contract, light sweet crude for delivery in March, closed overnight up 73 cents at an all-time high of $US100.74. The latest price spike burst Tuesday's record price of $US100.10 and record close at $US100.01. In London, Brent North Sea crude for April delivery settled 14 cents lower at $US98.42, after striking a record $US98.70 Tuesday. Prices have soared amid growing speculation OPEC, which supplies about 40 per cent of the world's oil, may cut output at its March 5 meeting in Vienna, anticipating a fall in demand at the end of the northern hemisphere winter and a US economic slowdown, analysts said. "Supply worries and comments by some OPEC members that the group might not raise output at their March meeting provided the catalyst for the sharp rally," said Barclays Capital analyst Kevin Norrish.
NYMEX to Launch 11 New Balance of Month Petroleum Products Swap ...
NEW YORK, Nov. 20 /PRNewswire-FirstCall/ -- The New York Mercantile Exchange, Inc. today announced that it will introduce 11 new balance of month (BALMO) petroleum products swap futures contacts on NYMEX ClearPort clearing and trading, beginning on December 2 for trade date December 3. The new BALMO contracts will be cash-settled based on the balance of month average Platts price starting from the day of execution through the last trading day of the contract month. These contracts allow users to customize the balance of month period by selecting the start date of the BALMO averaging period. The first listed month will be the December 2007 contract, and the next contract month will be listed 10 business days before the start of the contract month. The new swap futures contracts and their commodity codes are: Singapore 180cst fuel oil BALMO (BS); Singapore 380cst fuel oil BALMO (BT); Singapore jet kerosene BALMO (BX); Singapore gasoil BALMO (VU); Singapore naphtha BALMO (KU); Dubai crude oil BALMO (BI); European 3.5% fuel oil (Northwest Europe) BALMO (KR); European 1% fuel oil (Northwest Europe) BALMO (KX); European naphtha BALMO (KZ); New York Harbor 1.0% fuel oil BALMO (VK); and Gulf Coast 3% fuel oil BALMO (VZ).
Tech merger possibilities buoy stocks; energy heats up
Stocks edged higher Monday, as investors overlooked fresh worries in financial stocks and focused on merger prospects among technology companies.
Energy stocks were big winners, as oil prices moved higher in futures trading.
The Dow Jones industrial average added 57.88 points, to 12,240.01. International Business Machines and Boeing were the biggest contributors to the gain among the 30 Dow industrials.
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Wall Street advances sharply
Gold futures hit a record, briefly venturing above $913 an ounce as the dollar tumbled against other major currencies. The euro reached a new high above $1.49.Other commodities were higher, too. Crude oil rose $1.51 to settle at $94.20 a barrel on the New York Mercantile Exchange.Peter Dunay, investment strategist at Leeb Capital Management, believes the run in commodities prices will continue as Wall Street eyes what the Federal Reserve will do at its Jan. 29-30 meeting. Chairman Ben Bernanke has convinced investors the central bank will cut rates, and the expectation of cheaper money also bolstered sentiment Monday``We're expecting inflation to be a problem, and believe the commodity demand is going to continue,'' Dunay said. ``We think the Fed is going to throw as much money as they can to keep us out of recession, or keep the recession mild, so commodities will be higher.''Stocks sold off sharply last week after a chorus of Wall Street economists predicted the U.S.
Australian share market falls on US recession fears
At the close, the benchmark S&P/ASX200 index was down 62.5 points at 6290.7, while the All Ordinaries lost 61.5 points to 6372.6. At 4.15pm (AEDT) on the Sydney Futures Exchange, the March share price index contract was 20 points lower at 6312, on a volume of 18,706 contracts. Macquarie Equities client advisor David Halliday said the local bourse was starting to factor in the possibility of a recession in the US. "The higher oil price and economic data is certainly making more people think about the prospect of a recession in the US, and if that is the case, it is bad news for equity markets around the world,'' Mr Halliday said. "Our market started to factor in the prospect of a recession a little bit more today and that's why we've seen the big falls.'' On Wall Street overnight, the Dow Jones industrial average fell 220.86 points to close at 13,043.96.
Pressure mounts for new controls on oil futures speculators
Sean Cota runs a family-owned fuel oil business in Bellows Falls, Vt., and has been active in the futures markets for 20 years, locking in prices to protect both himself and his customers. But over the past five years, he has watched in amazement -- and growing anger -- as speculators flooded into the market. It has created tremendous volatility and, he believes, driven up prices for crude oil, heating oil and a host of other commodities. As prices hover near record levels this year, his customers are bearing the brunt -- turning down their thermostats, taking longer to pay their bills and even using credit cards to pay for home heating. "All of these things are having a huge impact on people for something that is just not justified by supply and demand," Cota said.
Oil strikes record $US101
OIL prices struck a record $US101.27 a barrel overnight amid renewed global supply jitters, analysts said. New York's main oil futures contract, light sweet crude for delivery in March, subsequently receded, but closed up 73 cents at an all-time high of $US100.74. The latest price spike burst Tuesday's record price of $US100.10 and record close at $US100.01. In London, Brent North Sea crude for April delivery settled 14 cents lower at $US98.42, after striking a record $US98.70 Tuesday. Prices have soared amid growing speculation that OPEC, which supplies about 40 per cent of the world's oil, may cut output at its March 5 meeting in Vienna, anticipating a fall in demand at the end of the northern hemisphere winter and a US economic slowdown, analysts said. "Supply worries and comments by some OPEC members that the group might not raise output at their March meeting provided the catalyst for the sharp rally," said Barclays Capital analyst Kevin Norrish.
Oil price strikes record $US90
CRUDE oil prices struck a record $US90 a barrel in after-hours trading in New York overnight, amid increased tensions between Turkey's government and Kurdish rebels in northern Iraq. Traders said a weak US dollar and supply jitters had also stoked the price surge. The price gains came after New York's main oil futures contract, light sweet crude for delivery in November, had jumped $US2.07 to a record close of $US89.47 a barrel. London prices also pushed higher in after-hours trading, as Brent North Sea crude for December delivery soared to $US84.88 after the contract had earlier settled $US1.47 higher at $US84.60. Oil prices have pushed higher this week amid geopolitical angst related to the Turkey-Iraq border and a weakening dollar, which makes dollar-priced commodities such as oil cheaper for buyers with stronger currencies and therefore lifts crude demand.
Dow up 90 despite inflation, growth worries
Stocks climbed out of a hole Wednesday, closing higher despite conflicting worries about inflation and economic growth.
Advances by technology stocks, led by an 8 percent rally in the shares of Hewlett-Packard, and energy stocks, reflected in a nearly 2 percent gain by Chevron, helped lead the market higher.
In futures trading, crude oil continued its assault on triple-digit barrel prices. Oil for March delivery rose 73 cents a barrel, to $100.74, its second straight record-high close, after trading as high as $101.32 during the session.
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