TOKYO, Jan 28 (Reuters) - U.S. crude futures extended
declines to hit a near two-month low on Friday, weighed down by
talk of OPEC raising output and weak economic data.
FUNDAMENTALS
* NYMEX crude for March delivery <CLc1> was down 42 cents at
$85.22 a barrel by 2356 GMT, after settling down $1.69 at $85.64
a day earlier, the lowest close since Nov. 30.
The contract, which also came under pressure after U.S. data
showed initial jobless claims rose last week, hit a low of
$85.17 earlier, the lowest since $83.63 on Dec. 1.
* Farouk al-Zanki, head of Kuwait Petroleum Corp, told
Reuters in Davos, Switzerland, he is concerned that current high
oil prices may contribute to the start of another global
downturn as they did in 2008. []
Brent's flirtation with $100 a barrel has increased pressure
on OPEC to be ready with more supply to keep high-priced oil
from stalling the economic recovery.
* The IEA's chief Nobuo Tanaka told Reuters he believes
Saudi Arabia is pumping more oil than it reports, while OPEC
Secretary-General Abdullah al-Badri denied that the world's
largest producer had raised production. []
[]
* Supporting the idea of higher OPEC supply, seaborne oil
exports by OPEC, excluding Angola and Ecuador, will rise by
330,000 barrels per day in the four weeks to Feb. 12, according
to British consultancy Oil Movements. []
* Moody's Investors Service warned on Thursday that lack of
U.S. government action on the budget deficit increases the
likelihood of a negative outlook on the country's top AAA credit
rating. []
* Investors await the release early on Friday of the first
reading of U.S. fourth-quarter 2010 gross domestic product,
which is forecast in a Reuters poll to show a 3.5 percent annual
growth rate. []
MARKETS NEWS
* Strong corporate earnings led Wall Street to a 29-month
closing high for a second day on Thursday, but another run of
big gains could be harder to achieve.
The Dow Jones industrial average <> finished up 4.39
points or 0.04 percent at 11,989.83. The Standard & Poor's 500
Index <.SPX> closed up 2.91 points or 0.22 percent at 1,299.54.
* The yen nursed broad losses on Friday after Standard &
Poor's cut Japan's credit rating by a notch, though it fared
relatively better against the dollar, which had troubles of its
own. []
DATA/EVENTS
* The following data is expected on Friday:
- 0900 EZ Money-M3 3m moving av Dec 2010 <EUCBM3=ECI>
- 1130 India M3 Money Supply Final <INM3MS=ECI>
- 1330 U.S. Real GDP qq SAAR Q4-Adv
- 1455 U.S. Reuters/UMich Sent Jan-P
- n/a U.S. Chevron Q4
PRICES
Oil prices as of 2356 GMT
Contract Mnth Price Change Day ago pct MA-20*
NYMEX Contracts
US Crude MAR1 $85.22 -0.42 -$1.69 -1.94% $89.56
Heat Oil FEB1 265.89 +0.43 -1.52 -0.57% 258.89
RBOB FEB1 238.85 +0.69 -4.90 -2.02% 243.67
Natgas MAR1 $4.330 +0.011 -$0.182 -4.04% $4.498
ICE Contracts
Brent MAR1 -- +0.00 -$0.52 -0.53% $96.25
Gasoil FEB1 -- +0.00 +$7.00 +0.86% $795.06
Note: U.S. heating oil and RBOB gasoline contracts listed in
cents per gallon.
* = 20-day moving average for continuation month.
(Reporting by Osamu Tsukimori; Editing by Michael Watson)
