SINGAPORE, March 1 (Reuters) - U.S. crude futures fell below $97 on Tuesday
after Saudi Arabia reassured the market with extra supply to meet a shortfall
caused by Libya output cuts.
Investors remain concerned about the security of crude supplies from the
Middle East, though forecasts of higher crude stockpiles in the U.S. last week
also weighed on sentiment.
FUNDAMENTALS
* NYMEX crude for April delivery was down 26 cents at $96.71 a barrel
by 0035 GMT. Brent crude for April delivery settled at $111.80 a barrel,
down 34 cents on Monday.
* All demands for extra oil have been met, Saudi Aramco CEO
Khalid al-Falih told reporters on Monday, following promises from the leading
exporter last week it would fill any supply gap left by Libya.
* Crude oil shipments from Libya were at a virtual standstill because of
reduced output and bad weather, according to shipping sources.
* The United States and other foreign governments discussed military options
for dealing with Libya on Monday as Muammar Gaddafi scoffed at the threat to his
government from a spreading popular uprising.
* Investors will be looking at weekly U.S. industry and government inventory
data to be released later on Tuesday.
In a Reuters poll, crude stockpiles were forecast up 1.2 million barrels
last week. Distillate stocks likely fell 1.5 million barrels and gasoline stocks
down 300,000 barrels, the poll also showed.
MARKETS NEWS
* A sustained period of higher oil prices would significantly affect
developing economies but is unlikely to derail their strong recovery since the
global financial crisis, a senior World bank economist said.
* Japan's jobless rate held steady in January and household spending fell at
a slower annual rate, offering hope that domestic demand will contribute to a
recovery in the economy this year.
* The average price U.S. drivers paid for gasoline soared 19.4 cents in the
latest week to $3.38 a gallon, the biggest jump in pump prices since Hurricane
Katrina disrupted petroleum supplies in September 2005, the Energy Department
said.
* U.S. regulators on Monday granted the first deepwater drilling permit
since the massive U.S. Gulf oil spill last April that prompted the Obama
Administration to impose a drilling moratorium.
* Australia's liquefied natural gas exports are expected to more than double
from 18 million tonnes in 2009/10 to 41 million tonnes in 2015/16, the country's
top commodity forecaster said.
DATA/EVENTS
* The following data is expected on Tuesday: (Times in GMT)
- 0100 China NBS PMI Feb 2011
- 0230 China HSBC PMI Feb 2011
- 0500 India HSBC Markit Mfg PMI Feb 2011
- 0500 Russia Manufacturing PMI Feb 2011
- 0853 Germany Markit/BME Mfg PMI Feb 2011
- 0858 EZ Markit Mfg PMI Feb 2011
- 0900 Germany Unemployment rate Feb 2011
- 1000 EZ Inflation, flash Feb 2011
- 1245 U.S. ICSC chain stores Weekly
- 1400 Canada BoC rate decision
- 1500 U.S. ISM Manufacturing PMI Feb
- 1500 U.S. Construction spending Jan
- 2130 U.S. API petroleum stocks Weekly
(Reporting by Florence Tan; Editing by Ed Lane)
