Oil hovers above $82 as month-long rally stalls

Oil prices hovered above $82 a barrel Friday in Asia as investors mulled whether extending a monthlong rally is justified amid evidence of weak U.S. crude demand.
Benchmark crude for April delivery was up 8 cents to $82.19 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose 2 cents to settle at $82.11 on Thursday.

Crude has jumped 18 percent from $69.59 a barrel on Feb. 5 as economic data pointed to slow but steady U.S. economic growth. However, high crude inventories belie a rosy economic outlook, and suggest consumer spending remains sluggish.

"We are still having much difficulty in constructing a bullish fundamental case," Ritterbusch and Associates said in a report. "We expect the crude stock build to continue well into the spring period."

In other Nymex trading in April contracts, heating oil fell 1.04 cents to $2.1058 a gallon, and gasoline dropped 1.29 cents to $2.2722 a gallon. Natural gas declined 2.7 cents to $4.532 per 1,000 cubic feet.

In London, Brent crude was up 11 cents at $80.39 on the ICE futures exchange.

source:The Associated Press,thejakartapost.

Asian markets higher in holiday-thinned trade

Asian stocks were modestly higher Tuesday in holiday-thinned trade as investors awaited another top level European finance meeting on Greece's debt crisis.

Markets in Shanghai, Hong Kong, Taiwan, Singapore and Malaysia were closed for Lunar New Year holidays. Wall Street was closed Monday for the Presidents Day holiday.

The euro, battered to a nine-month low last week as Greece's problems undermined confidence in the common currency, gained against the dollar. Oil prices hovered above $74 a barrel.

Corporate earnings provided a positive glimmer Tuesday with Westpac, one of Australia's largest banks, reporting that first quarter earnings grew by a third as bad loans dropped and the economy bounced back from the global financial meltdown.

But concerns about the fallout from Greece's debt crunch remain close to the surface.

The 16 nations that use the euro have pledged to help Greece if it can't repay its debts - but want Greece to make big spending cuts first.

On Tuesday, the finance ministers of the full 27-nation European Union meet and Greece is expected to be top of the agenda. Investors fear a Greek default could spark a wider European debt crisis, threatening governments ability to borrow money.

Japan's Nikkei 225 stock average was up 38.07 points, or 0.4 percent, at 10,051.37 and South Korea's Kospi gained 8.14, or 0.6 percent, to 1,602.78.

Australia's benchmark climbed 0.4 percent and India's Sensex added 0.3 percent. Elsewhere, Indonesia's market was flat and New Zealand's stock index advanced 0.9 percent.

In Europe on Monday, the FTSE 100 index of leading British shares closed up 25.02, or 0.5 percent, at 5,167.47 while Germany's DAX rose 10.71, or 0.2 percent, at 5,511.10. The CAC-40 in France was 11.27, or 0.3 percent, higher at 3,610.34.

Oil prices hovered above $74 a barrel in Asia as investors looked for signs of improving global crude demand amid light holiday trading.

Benchmark crude for March delivery as up 21 cents at $74.34 in electronic trading on the New York Mercantile Exchange. With markets closed Monday in the U.S., the contract last settled on Friday, falling $1.15 to $74.13.

In currencies, the dollar fell to 89.92 yen from 90 yen. The euro gained to $1.3639 from $1.3597.

The Associated Press , Bangkok | Tue, 02/16/2010 1:01 PM | Business

Oil rises above $83 amid strong China demand

Oil prices jumped above $83 a barrel Monday in Asia amid signs of strong Chinese demand for crude and a weakening U.S. dollar.

Benchmark crude for February delivery was up 80 cents to $83.55 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. On Friday, the contract rose 9 cents to settle at $82.75.

China said Sunday that oil imports rose 14 percent last year to a record high in December, part of a 56 percent surge in overall imports last month. The better than expected Chinese figures helped investors brush off Friday's disappointing U.S. jobless report, which showed the economy lost 85,000 jobs in December and the unemployment rate was steady at 10 percent.

A weaker dollar also helped boost oil prices, as investors buy commodities as a hedge against inflation.

The euro rose to $1.4530 on Monday from $1.4430 on Friday while the dollar fell to 92.20 yen from 92.54.

Crude prices have spiked 20 percent in the last month as a rash of cold winter weather in parts of the U.S., Europe and Asia boost demand for oil products such as heating oil.

Supplies were threatened in Nigeria, where unidentified gunmen attacked a Chevron Corp. crude oil pipeline, cutting production by 20,000 barrels a day, a company spokesman said Saturday.

In other Nymex trading in February contracts, heating oil rose 2.09 cents to $2.22 a gallon and gasoline gained 2.15 cents to $2.18 a gallon. Natural gas futures were down 16.5 cents to $5.58.

In London, Brent crude for February delivery rose 72 cents to $82.08 a barrel on the ICE Futures exchange.

The Associated Press , Singapore | Mon, 01/11/2010 6:34 PM | Business
Source:thejakartapost

Japan unveils growth plan for next decade

Japan's Prime Minister, faced with fading support as the country struggles to maintain its fledgling economic recovery, Wednesday outlined a new set of measures to spur growth over the next decade.

The plan aims for the country's economy to expand at an average of 2 percent over the next 10 years, with gross domestic product to grow to 650 trillion yen ($7 trillion) from the 473 trillion yen projected for the current fiscal year.

Final details are to be set by June of next year, ahead of nationwide elections for the upper house of parliament. That vote is seen as a major test for the new government, which swept to power this year by winning a majority in the powerful lower house, but has seen its popularity plunge by double digits in recent polls.

"With the understanding that the new government's ability to take action is being tested at this time, we will do whatever it takes to achieve this," Prime Minister Yukio Hatoyama told a news conference.


Hatoyama also said Japan would look to become less reliant on the U.S. economically and increase trade with its Asian neighbors, targeting a free trade zone in the region by 2020.

"Until now our connection with the U.S. has been very strong. Naturally this will continue to be the case in maintaining security. But in terms of economic growth, it is necessary to look closely at Asia as a new frontier," he said.

While the world's second-largest economy has shown some signs of recovery recently, including higher exports from its factories, deflation remains a major concern, and domestic demand is in a prolonged slump.

The new plan includes creating a $540 billion market for environmentally friendly products and renewable energy that will create 1.4 million jobs. It also seeks to create 2.8 million jobs in the health and caregiving sectors, that will cater to Japan's aging population.

Last week, Japan unveiled a record $1 trillion budget for the next fiscal year, reflecting the prime minister's campaign pledge to boost spending for child support and cut wasteful outlays on public works.

The government forecast earlier this month that Japan's economy would grow 1.4 percent next year, the first expansion in three years.

The Associated Press , Tokyo | Wed, 12/30/2009 1:50 PM | Business

source :www.thejakartapost.com-

Grows at fastest pace in 7 years

South Korea's economy grew at its fastest pace in over seven years in the third quarter amid strength in manufacturing and capital spending, the central bank said Monday, as Asian countries lead the global recovery.

Gross domestic product grew 2.9 percent in the three months ended Sept. 30 compared with the previous quarter when it expanded 2.6 percent, the Bank of Korea announced. The figure is preliminary and subject to revision.

That marked the strongest growth since an expansion of 3.8 percent in the first quarter of 2002, according to bank data.

South Korea has been recovering from its worst downturn since the 1997-98 Asian financial crisis as a weaker currency and government stimulus programs overseas boost exports. Record-low interest rates and government spending at home have also helped stimulate Asia's fourth-largest economy.

The unemployment rate fell in September to a nine-month low of 3.4 percent, consumer and business sentiment have risen and the current account - South Korea's broadest measure of trade - is firmly back in surplus after a deficit last year for the first time since 1997. Hyundai Motor Co. and Kia Motors Corp., both major exporters, reported record quarterly net profit in the third quarter as sales rose.

The country's latest GDP figure marks the third straight three-month period that the economy has grown. It eked out a 0.1 percent expansion in the first quarter after having contracted 5.1 percent in the final three months of 2008.

The central bank also said Monday that South Korea's economy grew in the third quarter compared with the same period last year, expanding 0.6 percent. That snapped three straight quarters of year-on-year contraction.

Manufacturing expanded 8.7 percent in the third quarter, while capital spending grew 8.9 percent.

The latest growth figures also add to evidence that Asian countries are leading a recovery in the world economy after it slumped severely in the aftermath of the global financial meltdown last year.

China's economy, the world's third largest, grew 8.9 percent in the third quarter from a year earlier, accelerating from an expansion of 7.9 percent in the second. Singapore's economy grew an annualized 14.9 percent in the third quarter, expanding for a second straight three-month period.

Japan, the world's second-largest economy, grew at an annual pace of 2.3 percent in the second quarter, following a yearlong contraction. Japan has yet to release figures for the third quarter.

Asia's performance contrasts with that of other major economies, some of which remain mired in recession. The German and French economies each grew a modest 0.3 percent in the second quarter. They have yet to release results for the third.

Britain's economy, however, shrank 0.4 percent in the third quarter, confounding expectations of growth.

The United States shrank 0.7 percent in the second quarter, though is expected to have expanded in the third after four straight quarters of decline.

Given South Korea's recovery, economists have been closely watching the Bank of Korea for signs it may begin to raise its key interest rate, which has been kept at a record low 2 percent for an eight months. At it most recent meeting this month, the bank largely doused speculation a rise could come this year. Economists expect it to lift borrowing costs, gradually beginning early next year.(TheJakartapost)