Monday, November 7, 2011

NYMEX-Crude gains after Greece deal on coalition govt

TOKYO (Nov 7):'' U.S. crude futures were headed for their fourth day of gains on Monday, as news that Greek politicians had formed a coalition government to approve a euro zone bailout raised hopes for an easing of Europe's debt crisis.


* NYMEX crude for December delivery was up 24 cents at $94.50 a barrel by 2352 GMT, after settling up 19 cents at $94.26 on Friday, the highest close since Aug. 1.

* London Brent crude for December delivery was up $1.07 at $113.04 a barrel, after settling up $1.14 at $111.97, the highest close since Oct. 27.

* Greek Prime Minister George Papandreou sealed a deal on Sunday with the opposition on forming a coalition to approve a euro zone bailout before early elections, breaking an impasse after the EU demanded a rapid end to the political bickering.

Papandreou agreed to stand down when the new government takes over.

* Crude oil refineries and pipelines in Oklahoma were unaffected by earthquakes that shook the state over the weekend, operators said on Sunday.

The strongest quake -- a 5.6 magnitude temblor -- rumbled the region on Saturday night, with aftershocks continuing Sunday in the central area of the state, about 40 miles (64 km) east of the capital Oklahoma City.

* Speculators trimmed their net long position in U.S. crude oil futures and options positions in the week to Nov. 1, pulling back from a four-month high hit the previous week, data from the U.S. Commodity Futures Trading Commission showed on Friday.

Hedge funds and other large investors cut their net long position on the New York Mercantile Exchange by 7,064 contracts to end Tuesday at 190,216, a reduction of just over 3 percent.

* The U.N. nuclear watchdog is expected this week to issue its most detailed report yet on research in Iran seen as geared to developing atomic bombs, heightening international suspicions of Tehran's agenda and stoking Middle East tensions.

Western powers are likely to seize on the International Atomic Energy Agency document, which has been preceded by media speculation in Israel of military strikes against Iranian nuclear sites, to press for more sanctions on the oil producer.

* The market got support after Friday's U.S. unemployment rate hit a six-month low and job gains in the prior two months were stronger than previously thought, pointing to some improvement in the still-weak labor market.

The employment report on Friday was the latest data to suggest the economy was gathering a bit of momentum and a further indication recession risks were fading.


* U.S. stock index futures opened higher on Sunday as the Greek government agreed on a new coalition government to approve the euro zone bailout deal.

Equities have been pressured in recent weeks by uncertainty related to the situation in Greece, with Wall Street rising and falling dramatically with any headline suggesting progress or delay in a plan being accepted.

* The euro edged up against the dollar early in Asia on Monday after the Greek prime minister struck an agreement with the opposition leader to form a new coalition government to approve a euro zone bailout deal before calling elections. - Reuters

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