Economic Calendar

Tuesday, September 23, 2008

NYMEX-Crude eases amid rescue plan uncertainty

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* Oil markets tentative on rescue plan uncertainty

* Industry recovery from Hurricane Ike continues

NEW YORK, Sept 23 (Reuters) - U.S. crude oil futures eased on Tuesday in choppy trading amid concerns about the economy and oil demand as Washington attempted to fashion a financial rescue plan acceptable to Congress.

"You have uncertainty about the dollar and the stock market taking hold ahead of today's testimony in Congress," said Phil Flynn, analyst at Alaron Trading in Chicago.

On the New York Mercantile Exchange, front-month November crude CLX8 fell 90 cents, or 0.82 percent, to $108.47 a barrel, trading from $106.07 to $109.58.

The expiring October crude contract surged to its biggest one-day gain on record in volatile trading on Monday, rocketing to $130 per barrel intraday, a jump of $25.45, or 24.3 percent, before slipping back to close nearly 16 percent higher.

NYMEX October crude CLV8 on Monday settled $16.37, or 15.65 percent higher, going off the board at $120.92 per barrel.

In London on Tuesday, November Brent LCOX8 fell $1.78, or 1.78 percent, to $104.15 a barrel, trading from $102.64 to $106.09.

The dollar attempted to consolidate on Tuesday, after the previous session's hefty fall against the euro, despite ongoing jitters over the U.S. government's bailout plan.

U.S. equities edged higher at the open on Tuesday, but global stocks fell, weighed down by investor worries about political resistance to Washington's bailout plan and whether the deal will work.

Concern persisted about delays as the Bush administration and Congress negotiated details of the package and markets awaited U.S. Treasury Secretary Henry Paulson's questioning by the Senate Banking Committee. [ID:nN23363416]

A preliminary Reuters poll of analysts ahead of U.S. government inventory data due out on Wednesday forecast that crude stocks fell last week, with gasoline supplies expected to be down sharply. [EIA/S]

Energy companies continued to work on restarting production, refineries and pipelines after Hurricane Ike. For Factbox, click on [ID:nN22261089].

Reported output curbs by Saudi Arabia, Nigeria's recent supply disruptions, Iran's dispute with the West over nuclear issues, and data showing China's thirst for crude remains strong all supported crude on Monday.

NYMEX October heating oil HOV8 fell 1.43 cents, or 0.47 percent, to $3.0287 a gallon, trading from $2.9734 to $3.0580.

October RBOB gasoline RBV8 fell 5.94 cents, or 2.2 percent, to $2.6444 per gallon, trading from $2.6212 to $2.7050. (Reporting by Robert Gibbons; editing by Jim Marshall)




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