PERTH, April 5 (Reuters) - U.S. crude oil futures slipped
early Tuesday, but still hovered around the Monday's 2-1/2 year
high as geopolitical risks amid fighting in Libya, unrest in
Yemen and stalled elections in Nigeria continued to support
prices.
U.S. government data last week showing the lowest
unemployment rate in two years also bolstered oil demand
expectations in the world's largest oil consumer, further
supporting prices.
Weekly industry and government petroleum inventory reports
are forecast to show a 1.4 million build in U.S. crude
inventories, a 1.9 million barrel decline in gasoline stockpiles
and a 200,000 barrel drop in distillates, according to a Reuters
poll of analysts.
FUNDAMENTALS
* On the New York Mercantile Exchange, May crude was
trading at $108.25 a barrel, down 22 cents, by 0114 GMT on
Tuesday. On Monday, in New York, the contract closed at $108.47
a barrel, the highest close for front-month NYMEX crude since
Sept. 22, 2008, when prices settled at $120.92.
* In London, ICE Brent crude for May delivery was
trading at $120.92, down 14 cents. It closed at $121.06 a barrel
on Monday, marking the highest settlement since Aug. 1, 2008,
when front-month Brent crude closed at $124.18.
* Forces loyal to Libyan leader Muammar Gaddafi are staging
a "massacre" in the besieged city of Misrata, evacuees said on
Monday, as Libya said it was ready to discuss political reform,
led by Gaddafi. []
* Libyan rebels may this week sell the first tanker full of
crude since a revolt against leader Muammar Gaddafi halted
exports from the North African country. []
* The U.S. government is trying to ratchet up pressure on
Yemeni President Ali Abdullah Saleh, who has partnered with the
U.S. in efforts to combat Al Qaeda, to reach a deal with the
opposition that would ultimately lead to his handing over power
after 32 years, U.S. officials said on Monday. []
* The latest violence in Yemen, in which at least 15 were
killed when police shot protesters in Taiz, south of the capital
Sanaa, is "appalling," a U.S. State Department spokesman said.
[]
* Saudi Arabia has not changed its view of the optimal oil
price level and is still seeking $70 to $80 a barrel, a Saudi
official told Reuters. []
* Kuwait would like to see world oil prices decline but does
not expect them to fall below $90 a barrel, Farouk al-Zanki,
state oil company Kuwait Petroleum Corp chief executive said.
[]
* Nigeria postponed parliamentary and presidential elections
by one week after failing to get logistics prepared in time.
[]
MARKETS NEWS
* Japan's Nikkei average opened up 0.14 percent at
9,732.26 on Tuesday, but was set to trade in a tight range for a
third day, as the post-quake rebound looks to have run its
course, with resource-related shares climbing on surging
commodity prices.[]
* The euro held below this week's five-month high against
the dollar and 11-month peak versus the yen on Tuesday as
investors paused to assess how much it can make in fresh gains
given that expectations for interest rate rises have largely
been priced in.
* The European Central Bank is expected to raise interest
rates by a quarter point from a record low of 1 percent at its
meeting on Thursday to rein in inflationary pressures, with two
more 25 basis point hikes priced in by the year-end .
* Silver jumped to its highest since early 1980 on Tuesday
on inflation concerns and a rise in ETF holdings to another
record, while gold edged down as the euro held below this week's
five-month high versus the dollar.
* Copper ended lower on Monday, failing to sustain an
earlier rise as investors weighed the potential bullish impact
of a big mining acquisition against a more subdued Chinese
presence at the start of 2011.
UPCOMING DATA/EVENTS (GMT)
0758 EZ Markit Services PMI Mar 2011
1145 U.S. ICSC chain stores yy Weekly
1400 U.S. ISM N-Mfg PMI Mar
1400 U.S. ISM N-Mfg Bus Act Mar
2030 U.S. API petroleum stocks Weekly
(Reporting by Rebekah Kebede in PERTH, Gene Ramos and Robert
Gibbons in NEW YORK; Editing by Himani Sarkar)
