TOKYO, Feb 23 (Reuters) - U.S. crude futures dropped to
around $80 a barrel on Tuesday after rising for five days, with
some traders selling to book profits on the new front-month
contract.
FUNDAMENTALS
* NYMEX crude for April delivery <CLc1> was down 26 cents at
$80.05 a barrel by 0017 GMT. Some analysts said with the contract
for April crude starting above $80, fulfilling the price target
of some traders, there was probably early selling to book
profits.
The contract for U.S. crude for March delivery, which expired
on Monday, settled 35 cents higher at $80.16 a barrel the
previous day, amid a flurry of late short-covering and aided by
rising gasoline futures.
* Gasoline futures got a lift from the continuing refinery
strikes in France. Motorists rushed to the pumps on the sixth day
of a Total refinery workers' strike, which a union said would
close more than half of France's oil refining capacity and which
has drawn in President Nicolas Sarkozy. []
Total said it would meet the unions on Tuesday morning.
* Crude oil also got support on Monday as Israeli Prime
Minister Benjamin Netanyahu called for an embargo on Iran's
energy sector, saying the U.N. Security Council should be
sidestepped if it cannot agree on the move. []
* U.S. crude oil inventories rose last week for the fourth
week in a row as imports continued to increase, a preliminary
Reuters poll of analysts showed on Monday. []
The industry group American Petroleum Institute (API) will
release its weekly inventory report later on Tuesday, while the
Energy Information Administration (EIA), a U.S. government
agency, will follow with its own weekly report on Wednesday.
MARKETS NEWS
* Japan's Nikkei average fell 0.7 percent on Tuesday, easing
from a rally the day before, after U.S. stocks finished flat as
investors held back before congressional testimony by U.S.
Federal Reserve Chairman Ben Bernanke for clues on the U.S.
recovery. []
* The U.S. dollar consolidated on Tuesday with traders on the
sidelines on speculation the Federal Reserve would hose down talk
of early monetary tightening, leading some investors to steer
clear of the greenback. []
A stronger dollar makes commodities priced in the currency
costlier for users of money such as the euro.
* The Reuters-Jefferies CRB index <.CRB>, a commodities
bellwether that tracks prices across 19 futures markets, edged
down 0.4 percent on Monday, reflecting the mixed closes across
the commodity markets it tracks. []
DATA/EVENTS
* The following data is expected on Tuesday:
- ICSC/Goldman Sachs Weekly Chain Store Sales (1245 GMT)
- Redbook Weekly U.S. Retail Sales (1355 GMT)
- U.S. S&P/Case-Shiller December Home Price Index (1400 GMT)
- U.S. Consumer Confidence for February (1500 GMT)
- API Weekly U.S. Petroleum Report (2130 GMT)
- ABC U.S. Weekly Consumer Comfort Index (2200 GMT)
RELATED NEWS
> US may soften greenhouse gas permit requirement []
> WSI sees more cold for East, South United States []
> Total sees growth in Nigeria, hopeful on reform []
> US activity index gains, Texas manufacturing dips []
> Buy Brent, sell US crude oil futures-Petromatrix []
PRICES
Oil prices as of 0017 GMT
Contract Mnth Price Change Day ago pct MA-20*
NYMEX Contracts
US Crude APR0 $80.05 -0.26 +$0.25 +0.31% $75.30
Heat Oil MAR0 207.30 -0.58 +0.89 +0.43% 196.63
RBOB MAR0 211.03 -0.55 +3.01 +1.44% 197.17
Natgas MAR0 $4.925 +0.030 -$0.149 -2.95% $5.332
ICE Contracts
Brent APR0 NA +$0.42 +0.54% $73.79
Gasoil MAR0 NA +$6.25 +0.99% $595.45
Note: U.S. heating oil and RBOB gasoline contracts listed in
cents per gallon.
* = 20-day moving average for continuation month.
(Reporting by James Topham in TOKYO and Gene Ramos in NEW YORK)
