Oil Jumps to Four-Week High on Signs of Global Economic Rebound

June 10 (Bloomberg) -- Crude oil jumped to the highest level in four weeks as equities surged after economic reports from China, Japan and Australia indicated that the global recovery is strengthening.

Oil climbed 5.7 percent in the past three days as Chinese exports increased the most in six years and Japan’s economy grew at the fastest rate since the second quarter of 2009 in the three months to March. The Dow Jones Industrial Average gained 2.8 percent, and the euro rose for a third day.

“We’re up along with everything else,” said Jim Ritterbusch, president of Ritterbusch & Associates, a Galena, Illinois, consulting firm. “The stock market’s up, and the euro is strong. A 200-point gain in the Dow Jones would indicate that there’s an increase in sentiment.”

Crude oil for July delivery rose $1.10, or 1.5 percent, to settle at $75.48 a barrel on the New York Mercantile Exchange, the highest level since May 12. Futures have increased 5.8 percent in the past year.

The Dow average climbed 273.35 points to 10,172.60 in New York. The Standard & Poor’s 500 Index increased 3 percent to 1,086.84.

The euro advanced 1.3 percent against the dollar to $1.2131 from $1.1979 yesterday, boosting the appeal of commodities as an alternative investment to the U.S. currency. The euro increased on speculation that Europe’s fiscal debt crisis is unlikely to derail global growth.

China

Chinese exports gained 48.5 percent in May from a year earlier, more than the 32 percent median estimate in a Bloomberg News survey of 32 economists. None expected such a big increase.

Customs data from China, the world’s second-largest energy consumer after the U.S., showed oil imports grew last month by 4.4 percent from a year earlier to 17.84 million metric tons, or about 4.36 million barrels a day.

“Fairly good economics are coming out of China and we’re getting a boost from it,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut.

Japan’s economy grew at an annualized 5 percent rate in the first quarter, faster than the 4.9 percent reported last month, a Cabinet Office report showed today in Tokyo. The median of 18 estimates in a Bloomberg News survey was for a 4.2 percent pace.

Australian employers added workers in May for a third straight month, with the number of people employed rising 26,900 from April, the statistics bureau in Sydney said today. That’s more than the median estimate of 20,000 in a Bloomberg survey of 23 economists.

Demand Forecast

The International Energy Agency increased its demand forecast for worldwide oil use in 2010 by 1.7 million barrels, or 2 percent, to a record 86.4 million barrels a day.

“The IEA on top of yesterday’s mildly bullish inventories report is keeping some upward pressure on the market today,” said Michael Lynch, president of Strategic Energy & Economic Research, in Winchester, Massachusetts.

U.S. oil supplies fell 1.83 million barrels to 361.4 million in the week ended June 4, the lowest level since April, the Energy Department reported yesterday.

OPEC, producer of about 40 percent of the world’s oil, will boost shipments this month as refiners raise operating rates to meet summer demand for fuels, according to a report today by tanker-tracker Oil Movements. OPEC, excluding Ecuador and Angola, will move 23.65 million barrels a day in the four weeks ending June 26, up 0.4 percent from the period to May 29.

Saudi Capacity

Saudi Arabia, the largest oil producer in the Organization of Petroleum Exporting Countries, plans to maintain spare oil- production capacity of about 2.5 million barrels a day in the next five years, Oil Minister Ali al-Naimi said in an interview with consultants Petroleum Policy Intelligence.

The kingdom’s spare capacity was about 3.2 million barrels a day in May, according to Bloomberg estimates.

The parliament of Iran, OPEC’s second-largest oil producer, will consider downgrading relations with the United Nations nuclear agency after the UN Security Council passed a fourth round of sanctions against the Persian Gulf nation yesterday over its atomic development.

“There are definitely some underlying geopolitical tensions that are giving support to energy prices,” said John Kilduff, a partner at Round Earth Capital, a New York-based hedge fund that focuses on food and energy. He cited Iran, the conflict in the Gaza Strip and the political situation in North Korea.

Brent crude for July delivery gained $1.02, or 1.4 percent, to $75.29 a barrel on the ICE Futures Europe exchange in London.

Oil volume in electronic trading on the Nymex was 692,374 contracts as of 3:02 p.m. in New York. Volume totaled 695,293 contracts yesterday, 11 percent above the average of the past three months. Open interest was 1.33 million contracts.

Soy-Stockpile Estimate Cut by USDA on Increased Domestic Use

June 10 (Bloomberg) -- Soybean inventories in the U.S., the world’s largest grower and exporter, will be lower than forecast last month because of increased domestic demand, the government said.

Stockpiles will total 185 million bushels at the end of the marketing year on Aug. 31, compared with 138 million a year earlier, the U.S. Department of Agriculture said today in a report. Last month, the USDA forecast 190 million bushels. An increase in the estimate for crushings to 1.74 billion bushels from 1.735 billion in May accounted for the difference.

“Beans are hard to come by,” said Mike Zuzolo, the president of Global Commodity Analytics in Lafayette, Indiana. The government report “answered the question about whether beans are actually out there or if farmers are just holding onto them,” Zuzolo said.

Analysts expected inventories would drop to 183.6 million bushels, based on 28 estimates in a Bloomberg News survey. Stockpiles for the year ending Aug. 31, 2011, are seen at 360 million bushels, a decline from 365 million predicted in May, because of the revision to the 2010 forecast.

Soybean futures for July delivery rise 12.5 cents, or 1.3 percent, to $9.435 a bushel yesterday on the Chicago Board of Trade. The most-active contract has dropped 10 percent this year on forecasts for record crops in South America.

Oil Falls for First Time in Three Days on U.S. Economy Concerns

June 10 (Bloomberg) -- Crude oil declined for the first time in three days in New York after the Federal Reserve said the U.S. economy was subdued in many parts of the country, signaling fuel demand growth may slow.

Oil pared some of yesterday’s 3.3 percent gain after U.S. equities fell following a slide in energy and financial shares and the release of the Fed’s Beige Book regional survey. Fed Chairman Ben S. Bernanke said the recovery isn’t as strong as he prefers and faces risks from Europe’s debt crisis. An Energy Department report showed higher gasoline supplies than forecast.

“There are still lingering macro concerns,” said Toby Hassall, a commodity analyst at CWA Global Markets Pty in Sydney. “If you look at market sentiment relative to where it was a few months ago, the global outlook certainly isn’t as bright as it was and that feeds through to crude demand.”

Crude oil for July delivery dropped as much as 66 cents, or 0.9 percent, to $73.72 a barrel in electronic trading on the New York Mercantile Exchange, and was at $73.93 at 9:12 a.m. Singapore time. Yesterday, the contract rose $2.39, the biggest advance since May 27, to settle at $74.38. Futures have fallen 6.8 percent this year.

The Beige Book report “was not taken positively across any of the markets,” said Mike Sander, an investment adviser at Sander Capital Advisors in Seattle.

Gasoline supplies in the U.S. fell 8,000 barrels to 218.9 million barrels last week, according to the Energy Department. A decline of 500,000 barrels was forecast by analysts surveyed by Bloomberg News before the report.

Gasoline Demand

Motor gasoline demand declined 1 percent to 9.1 million barrels a day from a year earlier in the four weeks ended June 4, according to the Energy Department.

Inventories of crude oil fell 1.83 million barrels to 361.4 million in the week ended June 4, the Energy Department reported, the lowest level since April. Supplies were forecast to decline by 900,000 barrels, based on the median estimate of 17 analysts in a Bloomberg News survey.

“We did see gasoline demand numbers fairly week,” CWA’s Hassall said. “In absolute terms inventories are still high, it’s not unexpected to see a decline in U.S. crude stocks.”

The dollar fell amid speculation the European Central Bank may act to stabilize the region’s debt markets.

Oil Demand

The Organization of Petroleum Exporting Countries yesterday left its forecast for world oil demand in 2010 at 85.37 million barrels a day, unchanged from the May estimate. The Energy Department cut its outlook for 2010 global oil consumption this week to 85.51 million barrels a day from 85.55 million last month. The Paris-based International Energy Agency will publish its outlook today.

OPEC said in its monthly report yesterday it will need to pump less crude than previously thought this year as output from non-OPEC countries increases more than forecast.

The group, which produces about 40 percent of the world’s oil, estimated members will need to pump 28.77 million barrels of oil a day to satisfy demand for the year, according to its monthly oil report. That’s about 70,000 less than last month’s projection.

The United Nations Security Council voted yesterday to impose new sanctions on Iran, OPEC’s second-largest oil producer, that restrict financial transactions, tighten an arms embargo and authorize the seizure of cargo linked to its nuclear or missile programs.

Brent crude for July delivery dropped as much as 42 cents, or 0.6 percent, to $73.85 a barrel on the ICE Futures Europe exchange, and was at $73.88 at 8:55 a.m. Singapore time. Yesterday, the contract gained $1.97, or 2.7 percent, to settle at $74.27.

Soybeans Rally as U.S. May Cut Stockpile Forecast; Corn Gains

June 9 (Bloomberg) -- Soybeans rose for the first time in four sessions on speculation that inventories will be tighter than expected in the U.S., the world’s largest grower and exporter. Corn also rallied.

The U.S. Department of Agriculture probably will cut its forecast of domestic stockpiles by more than 3 percent in a report tomorrow, according the average of estimates in a Bloomberg survey of 28 analysts. Corn growers in the U.S., the world’s largest producer, may be withholding supplies after prices dropped yesterday to an eight-month low.

“Soybeans are running tight,” said Jerod Leman, a broker at Wellington Commodities in Carmel, Indiana. “Even some smaller elevators are hanging on to supplies now. Given the crop conditions in corn and soybeans, farmers are holding a lot of grain right now.”

Soybean futures for July delivery rose 12.5 cents, or 1.3 percent, to $9.435 a bushel on the Chicago Board of Trade, the first gain since June 3. The price is down 12 percent in the past year, partly because of increased production in Argentina and Brazil, the largest exporters behind the U.S.

China, the world’s biggest consumer of cooking oils, purchased U.S. soybean oil, two traders with direct knowledge of the transaction, said today. China may have bought 100,000 metric tons of the oil, anticipating the U.S. will start certifying shipments to comply with Chinese regulations, said the traders, declining to be identified because the information isn’t public.

The U.S. government today confirmed sales of 40,000 tons of soybean oil to the Asian nation for delivery before Sept. 30

Corn futures for July delivery rose 1 cent, or 0.3 percent, to $3.3825 a bushel on the CBOT, the second straight gain. The price has slipped 18 percent this year, in part because of rising supplies.

Corn is the biggest U.S. crop, valued at $48.6 billion in 2009, followed by soybeans at $31.8 billion, government figures show.

FCPO 10th June Daily Market Commentary

FCPO 3rd month Aug futures contract fall RM14 lower to close at RM2418 levels as compare to previous trading sessions with a total of 14,247 lots traded in the market. FCPO price was traded wild during trading sessions as price traded from RM2438 towards lowest at RM2402 but recovered highest at RM2432 regions despite soybean oil and crude oil were trade firm during overnight and electronic trading.
FCPO price plunge and reach 100% Fibonacci support levels at RM2406 region before starts to rebound towards RM2432 regions; 38.2% Fibonacci resistance levels in the hourly price chart. Technically, FCPO price trading would further affirm riding on bear rally once support levels at RM2410 and RM2393 fails to hold up against the selling pressure in the coming trading sessions. However, FCPO price must strictly not trading above resistance levels at RM2457 and RM2484 in order to further affirm FCPO price trading south in the coming trading session.

FKLI 10th June Market Commentary

FKLI June Futures contract traded 3.5 point higher to close at 1286 levels as compare to previous trading session to with a total of 4,727 lots traded in the market. FKLI settled marginally higher after attempt to penetrate higher high during trading sessions despite Dow Jones were settle lower during overnight trading while regional indices was not trading on the advantage of FKLI.
FKLI seems temporary holding well above support levels at 1282 regions before FKLI manage to test resistance levels at 1291 regions; 61.8% Fibonacci resistance levels in the hourly price chart. Technically, FKLI seems form a rounding top formation within range from 1284 to 1290 regions in the hourly price chart. This suggests FKLI currently undergo critical stage where any break out from the price range shall lead to trend trading. Next nearest support was seen at 1282 and 1269.5 while nearest resistance levels was seen at 1291 and 1307 regions.

Oil Gains a Second Day as Industry Report Shows Supply Decline

June 9 (Bloomberg) -- Oil rose for a second day as confidence among U.S. small businesses rose and an industry- funded report showed a drop in the country’s crude supplies, bolstering optimism about the strength of the economic recovery.

Oil gained after the National Federation of Independent Business’s optimism index increased to 92.2 last month, the highest level since September 2008. The American Petroleum Institute said crude inventories dropped 4.54 million barrels last week. An Energy Information Administration report today will probably show that stockpiles fell 900,000 barrels, according to a Bloomberg News survey.

“There is some optimism with the macro data, especially in the U.S.,” Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne, said by telephone “The last few weeks there’s been decent draws in the oil inventories in the U.S. and so the EIA data will be important to see if that trend continues.”

Crude oil for July delivery gained 48 cents, or 0.7 percent, to $72.47 a barrel in electronic trading on the New York Mercantile Exchange at 10:09 a.m. in Sydney. Yesterday, the contract rose 55 cents, or 0.8 percent, to settle at $71.99.

Oil rose yesterday after Federal Reserve Chairman Ben S. Bernanke said that the improvement in the world’s largest energy-consuming country is “moderate paced.” The Standard & Poor’s 500 Index gained 1.1 percent following its biggest two- day slump since March 2009.

The Energy Department cut its oil price forecast for 2010 to an average $78.75 a barrel from $82.18 in its monthly Short- Term Energy Outlook, released yesterday. It reduced the outlook for oil consumption this year to 85.51 million barrels a day from 85.55 million last month.

Refinery Rates

U.S. refineries probably operated at 87.5 percent of capacity last week, unchanged from the previous week, according to the Bloomberg survey. Gasoline inventories fell 500,000 barrels from 219 million the week before.

Kuwaiti Oil Minister Ahmad Al-Sabah said yesterday that prices will probably average $70 for the rest of this year and that he considers current levels “acceptable.” Al-Sabah spoke to reporters in Kuwait’s parliament. Kuwait is OPEC’s third- largest oil producer after Saudi Arabia and Iran, based on Bloomberg estimates of May output.

The Organization of Petroleum Exporting Countries is scheduled to release its monthly market report today, and the Paris-based International Energy Agency is scheduled to publish its outlook tomorrow.

Brent crude for July delivery gained 18 cents, or 0.3 percent, to settle at $72.30 a barrel on the London-based ICE Futures Europe exchange yesterday.

Dollar Gains Toward Four-Year High Versus Euro on Rates Outlook

June 9 (Bloomberg) -- The dollar gained toward a four-year high against the euro on speculation U.S. policy makers will reiterate that an economic recovery is gaining pace.

The euro weakened against 11 of its 16 most-traded counterparts as economists surveyed by Bloomberg forecast the European Central Bank will leave its key interest rate at a record low until the second quarter of 2011. The ECB next meets tomorrow. Federal Reserve Chairman Ben S. Bernanke testifies before a House Budget Committee today after saying June 7 in Washington that the central bank will raise rates before the economy returns to full employment. The yen rose as Asian stocks fell, spurring demand for the safest assets.

“The Fed will be tightening before the ECB with the U.S. economy recovering at a faster pace,” said Adam Carr, a senior economist at ICAP Australia Ltd. in Sydney. “Both those things are dollar supportive.”

The dollar gained to $1.1946 per euro as of 9:35 a.m. in Tokyo from $1.1973 in New York yesterday. It climbed as high as $1.1877 per euro on June 7, the strongest since March 2006. The dollar bought 91.35 yen from 91.46. The yen rose to 109.12 per euro from 109.51 yesterday, when it fell 0.5 percent.

Kansas City Federal Reserve Bank President Thomas Hoenig said the U.S. is in a “modest, sustained” recovery in a speech in Kansas City. The Fed should begin to normalize policy with rates near zero “unsustainable,” he said.

The Fed’s benchmark interest rate has been in a range of zero to 0.25 percent since December 2008.

Fed Funds Rate

Hoenig’s view hasn’t shifted since the European debt crisis last month posed a risk to the U.S. recovery. He repeated that the funds rate should be raised to 1 percent by end September. Hoenig has voted against central bank statements, saying in April the “extended period” language limited the Fed’s “flexibility to begin raising rates modestly.”

Futures trading on the CME Group exchange showed a 32 percent chance the Fed will raise its target rate for overnight bank lending by at least a quarter-percentage point by its December meeting, down from 50 percent a month ago.

The pound fell versus most of its major peers after Fitch Ratings said yesterday the U.K.’s fiscal challenge is “formidable.”

Budget Cuts

Fitch suggested British Prime Minister David Cameron will need to speed up budget-deficit cuts to protect the U.K.’s top credit rating. Treasury estimates show government debt-interest costs reaching 70 billion pounds ($101 billion) in five years, up from 31 billion pounds in the last fiscal year.

“The scale of the United Kingdom’s fiscal challenge is formidable,” Fitch said in the first statement by a credit- rating firm on the U.K. since Cameron took office May 11.

The government will unveil an emergency budget June 22, outlining cuts to tackle a deficit that reached 11.1 percent of gross domestic product in the fiscal year through March.

The euro gained yesterday for the first time in four days against the dollar and yen on speculation the Swiss National Bank intervened to weaken the franc after it touched a record high versus Europe’s shared currency. The franc yesterday gained as much as 0.9 percent to 1.3746 per euro, a record. It traded at 1.3778 today.

‘Pushing Back’

“The euro’s abrupt rebound against the Swiss franc, coming around the end of the European trading session, suggests that Swiss officials might be pushing back by intervening to slow their currency’s rise,” said Joe Manimbo, a market analyst in Washington at Travelex Global Business Payments, a currency- exchange network.

A spokesman for the SNB, Werner Abegg, declined to comment. Central banks intervene by buying or selling currencies to influence exchange rates.

The euro-region’s debt crisis may prompt the European Central Bank to buy bonds as part of a so-called quantitative- easing program to spur the economy, HSBC Holdings Plc said.

“The ECB has been running ultra-loose policy now for more than one year, and I can only imagine we will take further steps toward increased government purchases,” Steven Major, London- based global head of fixed-income research at HSBC, said yesterday in a presentation in London. “The problem for the euro zone is that we just have too much debt.”

European finance ministers put the finishing touches this week to the European Financial Stability Facility, a fund backed by 440 billion euros ($525 billion) in national guarantees designed to halt the spread of the debt crisis that began in Greece.

FCPO 9th June Daily Market Commentary

FCPO 3rd month Aug futures contract fall RM17 lower to close at RM2432 levels as compare to previous trading sessions with a total of 8,651 lots traded in the market. FCPO price traded lower as soybean oil and crude oil electronic trading were traded lower during trading sessions.
FCPO price plunge lower and penetrate support levels at RM2435 regions after failed in attempt to penetrate previous high at RM2456 levels technically, FCPO price seems penetrate previous support levels at RM2437; 78.6% Fibonacci support levels in the hourly price chart, further confirmation on correction wave to take in place while next nearest support levels seen at RM2425 and RM2406 regions. However, FCPO price must not trading above resistance levels at RM2457 and RM2484 in order for correction phase to remain intact on short term trading

FKLI 9th June Market Commentary

FKLI June Futures contract traded marginally 3.5 point higher to close at 1282.5 levels as compare to previous trading session to with a total of 5,378 lots traded in the market. FKLI traded higher as regional indices and Dow Jones electronic trading were traded higher but retrace lower upon closing due to some profit taking activity as Dow Jones futures electronic trading south after reached +100 marks.
FKLI continue to surge higher in attempt to challenge resistance levels at 1289; 61.8% Fibonacci resistance levels, before reverse trading lower towards support levels at 1282 regions upon end of trading session. Technically, FKLI seems possible to end rebound wave at 1289 regions before correction wave take into place. Confirmation for correction wave lay upon support levels at 1279 and 1272 regions. However, resistance levels at 1289 and 1294 regions must not be violated in the coming trading sessions in order for correction wave to remain intact.

Oil Is High Enough to Encourage Investment, Iraq Says

June 7 (Bloomberg) -- Crude oil prices are high enough to encourage investments in marginal fields, Iraqi Oil Minister Hussain al-Shahristani said.

Iraq, holder of the world’s third-largest oil reserves, is producing oil at “far below” its potential and plans to add four oil refineries with 750,000 barrels of capacity a day to tap rising demand from Asia, al-Shahristani said at the Asia Oil and Gas Conference in Kuala Lumpur today.

“It’s not expected that there will be much oil available from other parts of the world,” he said. “Any additional demand, particularly from Asia, will have to be met by Iraq.”

The Middle East nation is seeking foreign investors to boost output after six years of conflict and prior sanctions destroyed its infrastructure. The country completed two bidding rounds for oil development rights last year and has awarded a dozen contracts to international companies.

The country will receive $150 billion in investments from fields awarded last year, al-Shahristani said.

Nations counting on oil for revenue and investments have seen income fell as crude prices declined on concern slower growth will sap demand for energy. The price of crude oil in New York lost 14 percent in May, the biggest monthly drop in 18 months, partly on concern the euro region’s debt crisis will slow economic recovery. U.S. crude oil inventories have risen every week but two since the week ended Jan. 22, according to data from the U.S. Department of Energy.

Refinery Study

Foster Wheeler AG said last week that it won a contract for a feasibility study and the engineering and design of an oil refinery at Nassiriyah in Iraq, as the Middle Eastern country seeks to boost its capacity to meet domestic demand and allow for some exports.

Iraq plans to build a 300,000 barrel-a-day facility at the southern city of Nassiriyah, Foster Wheeler said in a Business Wire statement June 2. The company didn’t disclose the value of the contract.

“Within a couple of years Iraq should be an exporter of petroleum products rather than an importer,” al-Sharistani said.

Iraq consumed about 638,000 barrels a day of oil products in 2008, up from 596,000 barrels daily in 2007, according to a report from the U.S. Energy Department.

OPEC Meeting

The Organization of Petroleum Exporting Countries, which supplies 40 percent of the world’s oil, isn’t planning any emergency meeting before its next scheduled meeting, he said. The next scheduled gathering is on Oct. 14.

Oil prices are “reasonable” and there is no shortage of supply, Mohamed al-Hamli, the United Arab Emirates oil minister. said June 2.

OPEC is set to reduce shipments this month as demand from Europe and the U.S. remains weak, according to tanker-tracker Oil Movements.

OPEC will ship 23.47 million barrels a day in the four weeks to June 19, the consultant said in a report on June 3. That’s down from a revised figure of 23.6 million for the four weeks to June 12 and 23.7 million in the four weeks to June 5. The data exclude Ecuador and Angola.

OPEC’s members are Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela. Iraq is exempt from the quota system.

Oil Falls a Third Day on Concern Debt Crisis Will Curb Demand

June 8 (Bloomberg) -- Crude oil declined for a third day in New York on concerns the government debt crisis in Europe will widen and curtail the recovery in global fuel demand.

Oil slipped after the euro tumbled to a four-year low against the dollar yesterday, curbing the appeal of commodities as an alternative investment. U.S. equities dropped, sending the Standard & Poor’s 500 Index to the biggest two-day loss since March 2009. U.S. gasoline stockpiles were probably unchanged last week, according to a Bloomberg News survey before a government report tomorrow.

“It’s certainly a case of macro sentiment being quite negative,” said Toby Hassall, a commodity analyst at CWA Global Markets Pty in Sydney. “It’s been a volatile few weeks across oil, equity markets and financial markets in general. Short-term, we should expect that volatility to continue.”

Crude oil for July delivery dropped 45 cents, or 0.6 percent, to $70.99 a barrel in electronic trading on the New York Mercantile Exchange at 9:46 a.m. Sydney time. Yesterday, the contract fell 7 cents to $71.44.

The dollar traded little changed at $1.1928 per euro at 9:46 a.m. Sydney time, after rising 0.4 percent yesterday.

“Europe is going down, so that means their currency and global markets are as well,” said Mike Sander, an investment adviser a Sander Capital Advisors in Seattle. “There is no fundamental reason for a rally at this time.”

Crude Supplies

U.S. oil supplies probably declined 1 million barrels from 363.2 million last week, according to the median of 10 estimates by analysts in the survey before tomorrow’s Energy Department report tomorrow.

Current prices are high enough to encourage investment in new supplies, Iraqi Oil Minister Hussain al-Shahristani said yesterday in Kuala Lumpur. The Organization of Petroleum Exporting Countries isn’t planning to hold an emergency meeting before its next scheduled gathering on Oct. 14, he said.

Hedge-fund managers and other large speculators decreased their net-long position in New York crude-oil futures in the week ended June 1, according to U.S. Commodity Futures Trading Commission data.

Speculative long positions, or bets prices will rise, outnumbered short positions by 24,875 contracts on the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report. Net-long positions fell by 15,568 contracts, or 38 percent, from a week earlier.

Brent crude for July delivery gained 3 cents to $72.12 a barrel on the ICE Futures Europe exchange in London yesterday.

Crude Oil Extends Slump on Europe Debt Concerns, U.S. Jobs Data

June 7 (Bloomberg) -- Crude oil dropped for a second day on concerns the government debt crisis in Europe will widen and after the U.S. added fewer jobs than forecast last month, suggesting energy demand may be slow to recover.

Oil fell 4.2 percent on June 4 after the Labor Department said that payrolls rose by 431,000 in May. Economists projected a 536,000 gain, according to the median forecast in a Bloomberg News survey. Prices extended declines as the euro dropped against the dollar on concern that Europe’s sovereign-debt crisis will spread into the financial system.

“The U.S. payroll data was on the weak side of expectations and put a question mark next to the rate of U.S. economic recovery,” David Moore, a commodity strategist at Commonwealth Bank of Australia Ltd. in Sydney, said by telephone today. “Concerns about Europe haven’t gone away. There are stories starting to emerge about Hungary’s fiscal position and that is affecting market sentiment.”

Crude oil for July delivery lost $1.24, or 1.7 percent, to $70.27 a barrel in electronic trading on the New York Mercantile Exchange at 9:01 a.m. Sydney time. The contract fell $3.10 to $71.51 on June 4, the biggest one-day drop since Feb. 4.

The U.S. government hired 411,000 temporary workers for the 2010 census, accounting for the bulk of the gain in employment. Private payrolls rose a less-than-forecast 41,000. The growth in jobs in the private sector followed an increase of 218,000 in April that was revised from 231,000.

Hungary’s government reversed course over the weekend, saying there was no danger of default after it spent two days telling the world the nation was at risk of a Greece-like crisis.

Brent crude for July settlement declined 99 cents, or 1.4 percent, to $71.10 a barrel, on the London-based ICE Futures Europe exchange at 9:01 a.m. Sydney time. The contract slipped $3.32, or 4.4 percent, to $72.09 on June 4.

FCPO Daily Commentary for 8th June 2010

FCPO 3rd month Aug futures contract rebound RM18 higher to close at RM2474 levels as compare to previous trading sessions with a total of 6,491 lots traded in the market. FCPO price trade higher mainly due to soybean oil and crude oil electronic trading was traded higher despite were settled lower during overnight trading.
FCPO price temporary supporting above RM2453 regions before surge up higher in attempt to penetrate previous high at RM2482 regions. Technically, FCPO seems attempt to challenge resistance levels at RM2484 and RM2501 regions, both were 78.6% and 100% Fibonacci resistance in the hourly price chart. Failed to resistance FCPO trading below the resistance levels shall indicates bullish sentiment in the market. However, FCPO price must stand firm above support levels at RM2453 and RM2460 region in order avoid continuation of correction wave to trade south after nearly 3 weeks consolidation period.

FKLI Daily Commentary for 8th June 2010

FKLI June Futures contract traded marginally 1 point lower to close at 1299 levels as compare to previous trading session to with a total of 4,062 lots traded in the market. FKLI trading within tight range during trading sessions as regional indices were traded indecisive towards the market direction.
FKLI failed in attempt to penetrate previous higher at 1302.5 during trading sessions after manage to allocate short term support at 1293 regions. Technically, FKLI seems manage to rebound 61.8% Fibonacci resistance levels at 1299 regions and correction wave C were expected to take in picture where next nearest support levels were seen at 1288 and 1285.5 regions. However, resistance levels for FKLI trading still maintain at 1307 and 1325 region, both were 61.8% and 78.6% Fibonacci resistance levels.