Reuters: Financial Services and Real Estate: NYMEX-Crude down on Europe woes, fading Fed hopes

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NYMEX-Crude down on Europe woes, fading Fed hopes Jun 8th 2012, 21:19 Fri Jun 8, 2012 5:19pm EDT * Spain's credit downgrade, weak European data hits oil * Absence of QE3 hint from Bernanke still a factor * Coming up: API weekly petroleum data, Tuesday NEW YORK, June 8 (Reuters) - U.S. crude futures fell for a second day in a row on Friday as Spain's banking troubles, broader European economic problems and fading hopes about more U.S. Federal Reserve monetary stimulus darkened the outlook for global oil demand. For the week, however, U.S. crude rose more than 1 percent, snapping five straight weeks of losses, helped by late surge in pre-weekend short-covering, traders said. Rating agency Fitch downgraded Spain's credit rating and said further downgrades could come as the country struggles to restructure its troubled banking system. Spain is expected to ask the euro zone for help in recapitalizing its banks this weekend, sources in Brussels and Berlin told Reuters. In Italy, industrial output fell in April and in Germany imports tumbled at the fastest rate in two years while exports dropped more than expected -- another sign that Europe's largest economy is beginning to feel the chill from the euro zone debt crisis. Meanwhile, hopes for a further round of U.S. Fed monetary stimulus were fading fast, a day after Fed Chairman Ben Bernanke offered few hints in a congressional testimony that the central bank would consider doing that as had been speculated in recent days. FUNDAMENTALS * On the New York Mercantile Exchange, July crude settled down 72 cents, or 0.85 percent, at $84.10 a barrel. For the week, it rose 87 cents, or 1.05 percent, snapping five straight weeks of losses. * In London, ICE Brent crude for July delivery settled at $99.47 a barrel, falling 46 cents, or 0.46 percent. For the week it rose $1.04, or 1.06 percent, ending five straight weekly losses. * Brent crude's premium against U.S. crude widened slightly, to $15.37, from $15.22 on Thursday. * NYMEX July heating oil futures settled up 0.5 cent or 0.19 percent, at $2.6721 a gallon. For the week, it gained 4.24 cents, or 1.61 percent, after falling more than 7 percent in the week to June 1. * NYMEX July RBOB gasoline futures finished up 0.02 cent, or 0.01 percent, at $2.6852 a gallon. For the week, it rose 2.82 cents, or 1.06 percent, after dropping 8.16 percent in the week to June 1. * The U.S. trade deficit narrowed 4.9 percent in April as slower growth in Europe and China bit into exports and the soft U.S. economy clipped import demand, a Commerce Department report showed. [ID: nnL1E8H83G] * Hedge funds and other big investors increased their net long positions of NYMEX crude futures and options by 1,582 contracts to 140,750 in the week to June 5, the Commodity Futures Trading Commission said in a weekly report. * The U.N. International Atomic Energy Agency said it made no progress in talks with Iran for a deal to resume a long-stalled investigation into suspected atom bomb research by Tehran. * U.S. oil production rose to more than 6 million barrels per day for the first time in 14 years in the first quarter of 2012, lifted by the oil boom in North Dakota and Texas, the Energy Information Administration said. * The global oil market is well supplied and can cope with the loss of Iranian crude to Western sanctions, oil officials and executives, including the heads of Total and Royal Dutch Shell said. * Plains Midstream Canada said it halted pipeline operations in West-Central Alberta after crude leaked into a large river system as the company continues to clean up from its last major spill in the province more than a year ago. MARKETS NEWS * The S&P 500 ended its best week in 2012 as investors returned to equities after sources told Reuters that Span was expected to request aid for its troubled banks. * The euro fell against the U.S. after Spain's credit rating downgrade and signs of economic weakness in Italy and Germany. Despite the losses, the euro was on track for its best weekly performance since April 22, after five straight weeks of declines. * London copper fell to its cheapest level since December and U.S. copper also sank on economic slowdown fears, amplified this week by a surprise rate cut in China and a downgrade of Spain's credit rating. * Gold rose as uncertainty about an upcoming rescue plan for Spain's troubled banks encourage some safe-haven buying. UPCOMING EVENTS/DATA * American Petroleum Institute's weekly U.S. petroleum inventory data. 4:30 p.m. EDT (2030 GMT) Tuesday. SETTLE NET PCT LOW HIGH CURRENT DAY AGO CHNG CHNG VOL VOL CLc1 84.10 -0.72 -0.9% 82.00 84.67 281,682 339,002 CLc2 84.39 -0.74 -0.9% 82.31 84.94 87,955 89,710 LCOc1 99.47 -0.46 -0.5% 97.19 99.99 238,313 284,006 RBc1 2.6852 0.0002 0.0% 2.6208 2.7008 44,954 67,212 RBc2 2.6215 -0.0007 0.0% 2.5590 2.6347 30,421 37,163 HOc1 2.6721 0.0050 0.2% 2.6161 2.6845 69,297 73,855 HOc2 2.6751 0.0020 0.1% 2.6210 2.6873 40,502 36,650 TOTAL MARKET VOLUME OPEN INTEREST CURRENT Jun 07 30D AVG Jun 07 NET CHNG CRUDE 636,169 684,204 551,558 1,461,385 -284 RBOB 116,445 149,685 148,754 298,233 753 HO 184,981 169,897 135,429 315,837 4,377 Link this Share this Digg this Email Reprints

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