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NYMEX-Crude down nearly 1 pct below $99 on stronger dollar

Published 05/15/2011, 08:19 PM
Updated 05/15/2011, 08:24 PM
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TOKYO, May 16 (Reuters) - U.S. crude futures were down nearly 1 percent on Monday below $99 a barrel, erasing Friday's gains as the dollar strengthened against the euro amid concern about Greece's debt problems.

FUNDAMENTALS

* NYMEX crude for June delivery was trading down 94 cents at $98.71 a barrel in Globex electronic trading as of 0008 GMT, after declining by more than a dollar to as low as $98.50 earlier.

Last week, U.S. crude rose $2.47, or 2.5 percent, staging a small recovery from the $16.75 record weekly loss in the week to May 6.

* London Brent crude for June delivery , which expires at the end of Monday trading, stood down 53 cents at $113.30, after falling as much as 88 cents to $112.95 earlier.

* Iraq expects to see its crude oil production reach 3 million barrels per day this year, up from 2.7 million bpd currently, and that development plans for oilfields were going ahead "normally", Deputy Prime Minister Hussain al-Shahristani said on Saturday. [ID:nLDE74D02L] [ID:nLDE74D025]

* U.S. President Barack Obama, under pressure from Republicans and the public to bring down gasoline prices, announced new measures on Saturday to expand domestic oil production in Alaska and the Gulf of Mexico. [ID:nN13152027]

* NATO must broaden the range of targets it is bombing in Libya or risk failing to remove Muammar Gaddafi from power, Britain's most senior military officer was quoted as saying on Sunday. [ID:nLDE74E09N]

* State oil group Saudi Aramco plans to double its power generation capacity to 4 gigawatts by 2015 as it brings new projects on stream, an Aramco executive said on Sunday. [ID:nLDE74E05Z]

MARKETS NEWS

* On the global economy, investors remain wary due to renewed worries about possible euro zone sovereign debt restructuring.

* In the United States on Friday, stocks fell hit by concern about slowed growth worldwide, the coming end of a supportive Federal Reserve policy and the fear of a worsening euro-zone debt crisis, undermining the stock market's ability to maintain an upward direction. [ID:nN13152655]

* The euro extended its losses and hit a two-month low against the yen and a six-week trough versus the dollar on Monday, hurt by ongoing worries that Greece may restructure its sovereign debt. [ID:nTKW007273]

Oil and dollar-denominated commodities often move inversely to the dollar and a stronger dollar typically pressures oil prices.

DATA/EVENTS

* The following data is expected on Monday: (Times in GMT)

- 0500 - Japan Consumer confid. Index/Apr

- 0800 - Italy Trade balance/Mar

- 0900 - Euro Zone Eurostat trade/Mar

- 0900 - Euro Zone Inflation, final/Apr

- 1230 - US NY Fed manufacturing/May

- 1300 - US Foreign buying, T-bonds/Mar

- 1400 - US NAHB housing market indx/May

- June 2011 ICE Brent Crude Futures contract expires (Reporting by Osamu Tsukimori; Editing by Chris Gallagher)

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