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NYMEX-Crude stays little changed, set for worst month in a year

Published 05/30/2011, 08:45 PM
Updated 05/30/2011, 08:48 PM
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TOKYO, May 31 (Reuters) - U.S. crude futures were little changed on Tuesday, still on course to mark their biggest monthly fall in a year as a rally last month above $110 per barrel intensified caution that high energy costs will hamper economic growth.

FUNDAMENTALS

* NYMEX crude for July delivery stood at $100.63 a barrel by 0020 GMT, up 4 cents from the previous settlement of $100.59 on Friday. The contract had fallen to a low of $100.25 before a drop in the dollar in early Asian trade propped it up.

* A weaker dollar often increases investor demand for dollar-denominated commodities such as oil.

* The New York Mercantile Exchange did not issue a settlement price on Monday, when trading on the floor was closed for the Memorial Day holiday, with all trading registered for May 31.

* U.S. crude prices were down more than 11 percent for the month of May, the biggest decline since May of last year.

* Last week, U.S. crude rose to a two-week high of $101.90, supported by a weaker dollar and optimism about demand in the world's biggest oil consumer.

* London Brent crude for July delivery was up 22 cents a barrel at $114.90.

* Japan's industrial output rose 1.0 percent in April, rebounding from a record fall the previous month, government data showed on Tuesday, in a sign that companies have made headway in mending damaged facilities and broken supply chains following the March 11 earthquake and tsunami. [ID:nECONJP]

* China said on Monday it would raise electricity prices for some users by about 3 percent, the first increase since 2009, as it tackles its worst power shortage in seven years. [ID:nL3E7GU10U]

MARKETS NEWS

* The euro rose to a three-week high against the dollar in early Asian trade on Tuesday as market players hunted stop-loss orders around $1.4345-50.

* Germany plans to shut all nuclear reactors by 2022, Chancellor Angela Merkel's ruling coalition announced on Monday, in a policy reversal drawn up in a rush after the Fukushima disaster in Japan. [ID:nLDE74T0GY]

* The Europe Union's carbon market could be flooded with excess pollution permits over the next decade if energy saving rules are introduced, cutting prices by half and depriving governments of billions in budgeted revenues, EU sources say. [ID:nLDE74T17E]

DATA/EVENTS

* The following data is expected on Tuesday: 0430 Japan Govt oil demand, trade data Apr 0500 Japan Construction orders yy Apr 0530 India 2010/11 GDP 2010 0530 India QUARTERLY GDP yy Jan 2011 0600 Germany Retail sales yy real Apr 2011 0800 Germany Unemployment rate sa May 2011 0900 EZ Inflation, flash yy May 2011 1200 Brazil Industrial output yy Apr 2011 1300 Canada BoC rate decision 1300 U.S. CaseShiller 20 mm nsa Mar 1300 U.S. CaseShiller 20 yy Mar 1345 U.S. Chicago PMI May 1400 U.S. Consumer confidence May (Reporting by Risa Maeda; Editing by Michael Watson)

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