TOKYO, Aug 10 (Reuters) - U.S. crude futures extended gains
above $81 a barrel on Tuesday after rising 1 percent a day
earlier ahead of industry data later in the day expected to show
a decline in U.S. crude inventories.
FUNDAMENTALS
* NYMEX crude for September delivery <CLc1> was up 11 cents
at $81.59 a barrel by 0022 GMT, after settling up 78 cents at
$81.48 a day earlier.
Oil prices have faded from last week's high of nearly $83 a
barrel, dropping 1.6 percent on Friday in the wake of a
disappointing U.S. nonfarm payrolls report. []
* Traders are watching to see if the U.S. Federal Reserve is
more concerned about economic recovery or the danger of falling
into a cycle of falling prices and slowing growth.
[]
The Fed is widely expected at Tuesday's meeting to renew its
commitment to keep interest rates near zero for an extended
period.
* U.S. crude inventories likely fell 1.6 million barrels last
week, a Reuters preliminary poll ahead of weekly inventory data
showed on Monday. []
Gasoline stocks are expected to have risen 100,000 barrels,
while distillate stocks probably gained 1.3 million barrels
according to the poll.
* With signs that the U.S. economic recovery is faltering,
the U.S. government may cut its estimate of global oil demand in
its new monthly forecast. []
The U.S. Energy Information Administration last month raised
its global oil consumption growth estimate for 2010 by 60,000
barrels a day, saying it expected world oil demand to climb to
85.82 million bpd this year.
* A low pressure system over the Gulf of Mexico strengthened
and has a medium 30 percent chance of turning into a tropical
depression over the next 48 hours as it moves toward the
Louisiana coast, the U.S. National Hurricane Center said.
MARKETS NEWS
* U.S. stocks rose on Monday in the quietest session of the
year on speculation that the Fed would signal potential steps to
boost the sluggish economic recovery.
* The dollar held rare gains on Tuesday as investors chose
discretion over valour and pared short positions ahead of a
possible change in U.S. monetary policy, a Bank of Japan meeting
and figures on Chinese trade. []
DATA/EVENTS
* The following data is expected on Tuesday: (Times in GMT)
- 0200 China Prelim Trade Data Jul []
- 1230 U.S. Productivity rate Q2-P <CALPR=ECI>
- 1300 EZ Euroilstock inventory report Jul []
- 1400 U.S. IBD consumer confidence Aug <USIBDC=ECI>
- 1400 U.S. Wholesale inventories Jun <USWINV=ECI>
- 1600 U.S. EIA Short-Term Energy Outlook Aug []
- 1815 U.S. FOMC rate decision <USFOMC=ECI>
- 2030 U.S. API weekly crude stocks Jul 30 <USOIAC=ECI>
RELATED NEWS
> China July property prices rise 10.3 pct y/y []
PRICES
Oil prices as of 0022 GMT
Contract Mnth Price Change Day ago pct MA-20*
NYMEX Contracts
US Crude SEP0 $81.59 +0.11 +$0.78 +0.97% $78.85
Heat Oil SEP0 215.94 +0.56 +0.66 +0.31% 207.10
RBOB SEP0 212.45 +0.58 +0.60 +0.28% 210.51
Natgas SEP0 $4.332 +0.023 -$0.158 -3.54% $4.593
ICE Contracts
Brent SEP0 $81.09 +0.10 +$0.83 +1.04% $78.07
Gasoil AUG0 $679.50 -1.00 +$1.75 +0.26% $658.20
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)
