Oil Rises as Investors Weigh U.S. Supplies Against OPEC Strategy

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Oil rose for the second time in three days as investors weighed a projected decline in U.S. crude stockpiles against signs that Iraq is joining other OPEC members in defending market share.

West Texas Intermediate futures advanced as much as 0.8 percent in New York. Inventories in the U.S., the worlds largest consumer, probably dropped for a second week through Dec. 19, a Bloomberg News survey showed before government data tomorrow. Iraq plans to boost output next year as members of the Organization of Petroleum Exporting Countries refuse to cede market position, Iraqi Oil Minister Adel Abdul Mahdi said.

Oil is heading for the largest annual drop since 2008 as the U.S. pumps crude at record levels amid signs of weakening demand. Saudi Arabia and the United Arab Emirates reiterated pledges to keep producing at the same rate, blaming non-OPEC suppliers for the glut thats led to the collapse in prices.

WTI for February delivery climbed as much as 43 cents to $55.69 a barrel in electronic trading on the New York Mercantile Exchange and was at $55.36 at 10:55 a.m. in Sydney. The contract slid $1.87 to $55.26 yesterday. The volume of all futures traded was about 79 percent below the 100-day average. Prices are down 44 percent this year.

Brent for February settlement dropped $1.27, or 2.1 percent, to $60.11 a barrel on the London-based ICE Futures Europe exchange yesterday. The European benchmark crude ended the session at a premium of $4.85 to WTI.

OPEC doesnt intend to cut supply œwhatever the price is, Saudi Arabias Oil Minister Ali Al-Naimi said in an interview with the Middle East Economic Survey.

Source : Bloomberg

Yen Falls to Two-Week Low on Reduced Haven Demand; Aussie Drops

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The yen fell to a two-week low against the dollar as gains in global stocks cut demand for haven assets.

The Bloomberg Dollar Spot Index reached a five-year high before data forecast to show the U.S. economy grew more than initially estimated in the third quarter. The euro was 0.1 percent from the lowest in more than two years amid speculation the European Central Bank will add stimulus next year. The Australian dollar slid as commodity prices declined.

The yen fell 0.1 percent to 120.17 per dollar as of 8:52 a.m. in Tokyo from yesterday, after depreciating to 120.18, the weakest level since Dec. 9. Japans currency bought 146.87 per euro from 146.82. The 18-member euro was little changed at $1.2222 from yesterday, when it reached $1.2217, the lowest since August 2012.

Australias dollar declined 0.2 percent to 81.21 U.S. cents. The Aussie will slide to the low 70s in 2015, according to CBAs Capurso.

The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major counterparts, added 0.1 percent to 1,128.46, set for the highest closing level since March 2009.

Source : Bloomberg

Asian Stocks Fall First Day in Four as Commodity Shares Retreat

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Asian stocks fell, with a gauge that excludes Japan heading for its first decline in four days, as commodity shares retreated after oil and metal futures declined.

The MSCI Asia Pacific Excluding Japan Index lost 0.2 percent to 465.86 percent as of 9:08 a.m. in Seoul. Japanese markets are closed for a holiday. The Standard & Poors 500 Index and Dow Jones Industrial Average closed yesterday at all-time highs as U.S. shares rallied for a fourth day after Federal Reserve Chair Janet Yellen said last week the central bank will likely hold key rates near zero at least through the first quarter. S&P 500 futures were little changed today.

Australias S&P/ASX 200 Index lost 0.3 percent. South Koreas Kospi Index was little changed and and New Zealands NZX 50 Index gained 0.1 percent. Markets in China and Hong Kong are yet to open.

Brent crude oil slipped 2.1 percent to $60.11 a barrel in London yesterday after Saudi Arabian Oil Minister Ali Al-Naimi said OPECs biggest producer will seek to maintain market share and that global demand growth this year was slower than expected. A gauge of metal futures in London dropped for a fifth day in six days.

Source : Bloomberg

S&P 500 Climbs to Record After 3-Day Rally as Tech Shares Jump

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The Standard & Poors 500 Index rose to a record as a surge in technology shares helped the benchmark index fully recover from a seven-day selloff in early December.

Facebook Inc. and Intel Corp. rose more than 2 percent to pace gains among technology shares.

The S&P 500 added 0.4 percent to 2,078.68 at 4 p.m. in New York, above its previous record close of 2,075.37 reached Dec. 5. The S&P 500 has advanced in each of the past six Decembers.

U.S. equities jumped 5 percent in the past three sessions as Fed Chair Janet Yellen said the central bank will likely hold key rates near zero at least through the first quarter, even as the U.S. economy strengthens.

A slide in oil prices and a worsening of the financial crisis in Russia rippled through financial markets earlier this month, wiping more than $1 trillion from U.S. equity values in less than two weeks. The S&P 500 lost 5 percent in seven trading days through Dec. 16.

U.S. stocks have tripled during the 5 1/2-year bull market, driven by the Feds three rounds of bond buying and borrowing costs near zero to stimulate the economy.

Data today showed purchases of previously owned U.S. homes dropped more than forecast in November as residential real estate struggles to sustain its recovery even as borrowing costs remain low.

Source: Bloomberg

U.S. Stocks Little Changed After Rally; Energy Falls

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U.S. stocks fluctuated, after the biggest three-day jump since 2011, as gains in technology shares offset a slump in biotechnology and the first drop in five days for energy companies.

The Nasdaq Biotechnology Index slumped 2.6 percent as Gilead Sciences Inc. sank 14 percent after a drug-benefit manager blocked the companys $1,000 hepatitis treatment. Chevron Corp. lost 1.3 percent as energy companies were the worst performers in the Standard & Poors 500 (SPX) Inc. Facebook Inc. and Intel Corp. rose more than 2.3 percent to pace gains among technology shares.

The Standard & Poors 500 Index added less than 0.1 percent to 2,071.01 at 12:14 p.m. in New York, near a record close. The Dow Jones Industrial Average jumped 89.72 points, or 0.5 percent, to 17,894.52. Trading in S&P 500 companies was 9 percent below the 30-day average for this time of the day.

U.S. equities jumped 5 percent in the past three sessions as Fed Chair Janet Yellen said the central bank will likely hold key rates near zero at least through the first quarter, even as the U.S. economy strengthens.

Source : Bloomberg