TOKYO, May 17 (Reuters) - U.S. crude futures headed for their
first gain in five days on Monday, after concerns about the
European economy and swollen U.S. oil inventories sent them to a
three-month low below $72 a barrel on Friday.
FUNDAMENTALS
* NYMEX crude for June delivery <CLc1> was up 23 cents at
$71.84 a barrel by 2304 GMT, after settling down $2.79 at $71.61
on Friday, bringing a two-week tumble to $14.54, or 16.9 percent,
the biggest two-week percentage loss since the period ending Jan.
16, 2009.
The contract, which fell to $70.83 on Friday, the lowest
since Feb. 8, is expected to face volatility ahead of Monday's
June crude options expiration and the May 20 June crude contract
expiration.
* The euro touched an 18-month low on Monday, as investors
dumped the single currency on mounting fears that recent
belt-tightening measures would hurt already fragile growth in the
euro zone area. []
* Stockpiles of crude at Cushing, Oklahoma, the delivery hub
for the U.S. contract's West Texas Intermediate benchmark crude,
have risen in the last eight weeks to a record 37 million
barrels, pushing front-month U.S. crude down relative to both
more distant futures contracts and the alternative global crude
benchmark, Brent.
* Qatar expects further pressure on oil prices from the
uncertainty engendered by the European debt crisis, its oil
minister said on Saturday. []
"The oil price is not reflective of demand and supply, but
psychological (factors) and uncertainty, especially in Europe
(and due to the Greece) bailout," Abdullah bin Hamad al-Attiyah
told reporters. "All this put a lot of pressure on the world
economy and the oil price," he said.
* Oil exports from Iraq's southern Basra terminal rose on
Sunday to 1.464 million barrels per day (bpd) after falling to
1.176 million bpd the previous day due to low crude storage
levels, a shipping source said on Sunday. []
* BP said it had limited success at containing the oil that
is gushing unabated into the Gulf of Mexico on Sunday and said it
may be able to stop the flow permanently in about a week.
[]
MARKETS NEWS
* U.S. stocks could face more volatility this week as growing
doubts about whether Europe can solve its deepening debt crisis
are likely to take centre stage again. []
The three major U.S. stock indexes ended Friday's session
with losses ranging from 1.5 percent to 2 percent amid worries
over Europe's debt problems.
DATA/EVENTS
* The following data is expected on Monday:
- 1000 GMT--U.K. CBI Trends-Orders/May
- 1230 GMT--NY Fed Manufacturing/May
- 1300 GMT--U.S. Overall Net Capital Flow/Mar
RELATED NEWS
> Brazil's Petrobras to boost 2010 oil output 22 pct []
> Three Chinese oil workers abducted in Yemen []
> Turkey, Brazil seal deal on Iran nuclear fuel swap []
PRICES
Oil prices as of 2304 GMT
Contract Mnth Price Change Day ago pct MA-20*
NYMEX Contracts
US Crude JUN0 $71.84 +0.23 -$2.79 -3.75% $80.73
Heat Oil JUN0 205.86 -0.20 -7.13 -3.34% 219.19
RBOB JUN0 213.40 +0.32 -6.43 -2.93% 226.93
Natgas JUN0 $4.330 +0.018 -$0.027 -0.62% $4.105
ICE Contracts
Brent JUL0 $78.02 +0.09 -$3.50 -4.30% $83.76
Gasoil JUN0 -- +0.00 -$20.50 -3.00% $700.03
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 Edwina Gibbs)
