* Commodity markets focus still on dollar after G20 accord
* Dollar slumps, then pares loss, oil seesaws with dollar
* Coming Up: U.S. API oil data on Tuesday, 4:30 p.m. EDT
(Recasts, updates prices, market activity to settlement)
By Robert Gibbons
NEW YORK, Oct 25 (Reuters) - U.S. oil prices rose on
Monday, up a second straight session on the weaker dollar and
stronger equities after disappointing results from a Group of
20 meeting reinforced expectations the Federal Reserve will act
to support a sputtering economic recovery.
Trading was choppy and oil closed well under its session
high of $83.28. Crude even turned negative when the dollar
pared losses, but got a late boost when Greece's central bank
governor said the worst was over for the country's banks.
[]
U.S. crude for December <CLc1> delivery rose 83 cents, or
1.02 percent, to settle at $82.52 per barrel.
Trading volume was thin for a second straight session. With
about 30 minutes left in post-settlement trading, volume
totaled 464,508 lots -- well below the 250-day average of
663,534 lots, though up from Friday's total of 388,105.
In London, ICE Brent December crude <LCOc1> rose 58 cents,
or 0.7 percent, to settle at $83.54 a barrel.
The comments from Greece, "could signal to the market that
the Greek saga is really over. It really cements the idea that
the dollar could move lower (against the euro) from here. As a
result the market's back to selling the dollar and buying
commodities," said Phil
The dollar fell broadly, slumping to a 15-year low against
the yen, with the euro trading above $1.40 intraday, as
investors sold dollars after the G20 agreement to shun
competitive currency devaluations. []
The dollar pared losses against the euro after
better-than-expected U.S. September existing home sales data,
with the dollar index <.DXY> bouncing off its session low.
[]
U.S. stocks rose as the falling dollar and expectations of
economic stimulus from the U.S. Federal Reserve prompted
investors to pick up riskier assets. []
"There was a view that the G20 meeting might result in some
stabilization and accountability. But the meeting achieved
nothing and paves the way for the coming easing regime by the
Federal Reserve," said John Kilduff, partner at hedge fund
Again Capital LLC in New York.
The Federal Reserve is expected to launch a second round of
asset purchases at its Nov. 2-3 meeting, a process intended to
push down U.S. interest rates.
Expectations are that it will make the dollar less
attractive than higher-yielding currencies. A weak dollar can
raise the price of oil by making it less expensive for buyers
with other currencies and by attracting investors wanting
better returns expected in commodities.
Workers at most of France's refineries voted to continue
striking over pensions, but three voted to end action, union
officials said. [] [] []
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Map of fuel shortages in France:
http://link.reuters.com/hut69p
Map showing refineries supplied from Fos-Lavera:
http://r.reuters.com/zar46p
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
Oil traders continued to watch the potential for weather
disruption to Gulf of Mexico output from the remnants of
Hurricane Richard, which was downgraded to a tropical
depression over Mexico as it headed into the Gulf of Mexico.
Mexico's state run oil company Pemex said the system would
not affect the country's offshore production. []
INVENTORIES
Oil investors will give some attention to weekly reports on
U.S. oil inventories. A Reuters survey of analysts on Monday
yielded a forecast for crude stocks to be up 1.4 million
barrels in the week to Oct. 22. []
Total distillate stocks, including diesel fuel and heating
oil, were expected to have fallen, while gasoline stocks were
estimated to have moved up slightly, only 500,000 barrels.
The industry group American Petroleum Institute will
release its report on Tuesday at 4:30 p.m. EDT (2030 GMT) on
Tuesday. The government's report will follow on Wednesday
morning.
(Additional reporting by Gene Ramos and David Sheppard in New
York, Alex Lawler in London and Alejandro Barbajosa in
Singapore; Editing by David Gregorio)
