TOKYO, March 17 (Reuters) - U.S. crude futures extended gains
on Wednesday, adding to a 2.4 percent rise the previous day made
on weakness in the dollar, and as OPEC ministers planned to keep
oil output cuts in place at a meeting Wednesday.
FUNDAMENTALS
* NYMEX crude for April delivery <CLc1> was up 45 cents at
$82.15 a barrel by 0002 GMT, after settling up $1.90 at $81.70 a
day earlier.
It fell as low as $79.13 on Monday, the lowest since March 2.
* Oil demand is picking up and that could mean OPEC does not
need to take any further action on supply this year, the group's
biggest producer Saudi Arabia said as ministers prepared to
rubber stamp existing outpaced targets.
"We have been sailing very well and we will continue to sail
very well," Saudi Arabian Oil Minister Ali al-Naimi told
reporters a day ahead of its meeting on Wednesday, as other
members voiced concern OPEC is pumping too much oil.
[]
* U.S. crude oil inventories were forecast to be up for the
seventh week in a row last week, lifted by higher imports, an
expanded survey of industry analysts showed on Tuesday, ahead of
inventory reports. The U.S. Energy Information Administration's
report is set for release on Wednesday at 1430 GMT.
[]
* The U.S. Federal Reserve renewed its pledge on Tuesday to
keep interest rates near zero for an "extended period" even as it
sounded more upbeat about jobs. The central bank's nod to a
firmer job market after the deepest recession in decades offered
a hint it may be moving closer to dropping its promise to hold
borrowing costs at rock bottom levels. []
MARKETS NEWS
* U.S. stocks rose to a fresh 17-month high on Tuesday after
the Fed held benchmark rates near zero and maintained its pledge
to keep them low for an extended period. The Fed also pointed to
increased momentum in the economy's recovery, and that, coupled
with strength in Intel, helped the S&P 500 hit a fresh 17-month
high. For details, see []
* The dollar was hovering near one-month lows against a
basket of currencies on Wednesday as investors cut long positions
after the U.S. central bank retained its dovish bias by pledging
to keep interest rates low.
Dollar bulls were also disappointed that no one joined Kansas
City Fed president, Thomas Hoenig, in dissenting the Fed's vow to
keep rates low for an "extended period", after a batch of robust
data raised hopes of a more durable recovery there. []
DATA/EVENTS
* The following data is expected on Wednesday:
- Meeting of the Organisation of the Petroleum Exporting
Countries (OPEC) Conference. (N/A)
- UK unemployment data, Jan/Feb. (0930 GMT)
- Euro zone labor cost data, Q4. (1000 GMT)
- Weekly U.S. mortgage market index. (1100 GMT)
- U.S. PPI/core PPI for February. (1230 GMT)
- Energy Information Administration issues weekly petroleum
stocks and output data. (1430 GMT)
- Fed's Bernanke, White House's Volcker testify. (1800 GMT)
RELATED NEWS
> Stocks, bonds rally after Fed keeps rates steady []
> Oil, metals jump as dollar falls; sugar plunges []
> OPEC should leave output, comply more: president[]
> U.S. crude stockpiles rise, products fall -API []
PRICES
Oil prices as of 0000 GMT
Contract Mnth Price Change Day ago pct MA-20*
NYMEX Contracts
US Crude APR0 $82.13 +0.43 +$1.90 +2.38% $80.22
Heat Oil APR0 212.75 +1.32 +5.67 +2.76% 206.62
RBOB APR0 228.83 +1.33 +5.22 +2.35% 217.61
Natgas APR0 $4.344 -0.003 -$0.044 -1.00% $4.708
ICE Contracts
Brent APR0 -- +0.00 +$1.13 +1.45% $78.51
Gasoil APR0 -- +0.00 +$23.00 +3.54% $641.64
Note: U.S. heating oil and RBOB gasoline contracts listed in
cents per gallon.
* = 20-day moving average for continuation month.
(Reporting by Chikako Mogi; Editing by Edwina Gibbs)
