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Oil Futures Gain on Bernanke Remarks

Oil futures are higher in Asian hours Wednesday after comments from the U.S. Federal Reserve chief suggested that the Fed’s easy policy will stay for an extended period. Ben Bernanke’s comments are also weakening the greenback against other major currencies and giving some lift to dollar-denominated oil futures. On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $93.59 a barrel at 0559 GMT, up $0.25 in the Globex electronic session. January Brent crude on London’s ICE Futures exchange rose $0.17 to $107.09 a barrel. The gains in oil may be short-lived with investors jittery ahead of the U.S. Energy Information Administration’s weekly release of data on petroleum inventories Wednesday, which is expected to show a ninth straight week of increases amid strong domestic production. Analysts are expecting a rise of 700,000 barrels according to a survey of analysts by The Wall Street […]

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Natural Gas Down 1.7% as High Supply Trumps Near-Term Weather

–Gas down 2.8% in two days amid high supplies –Demand boost on cold snap priced into market –Temperature outlook beyond next week uncertain By David Bird NEW YORK–Natural-gas futures dropped 1.7% Tuesday as high supplies overshadowed a cold snap forecast for key consumer markets in coming days. Traders said the market has priced in expectations of below-normal temperatures from the Midwest through the south and east. But the outlook beyond the next six to 10 days continues to be uncertain, providing incentive for market participants to take to the sidelines. “The real cold weather is expected to last four to five days,” said Gene McGillian, broker and analyst at Tradition Energy in Stamford, Conn. “That’s taking a little bite of the rally.” For a second straight day, prices climbed early, only to find a lack of follow-through buying. Natural gas for December delivery on the New York Mercantile Exchange […]

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Ethanol Climbs Amid Speculation That Gasoline Demand Will Rise

Ethanol gained for a second day on speculation that increased demand for gasoline will spur consumption of the biofuel. The additive’s discount to the motor fuel contracted 4.83 cents to 80.35 cents a gallon, higher than the 57.15 cents averaged so far this year. Gasoline demand over the past four weeks was 4.7 percent above a year ago as of Nov. 8, data from the Energy Information Administration show. “It’s tight,” said Julie Ward, an assistant vice president at R.J. O’Brien & Associates, a broker in Des Moines , Iowa . “Demand is still good. With ethanol trading almost a buck under gasoline, refiners should be blending as much as they can.” Denatured ethanol for December delivery rose 3.1 cents, or 1.7 percent, to $1.836 a gallon on the Chicago Board of Trade, the highest settlement since Oct. 25. Prices have fallen 16 percent this year. Gasoline for December […]

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WTI Gains for Second Day as U.S. Fuel Stockpiles Seen Shrinking

West Texas Intermediate rose for a second day amid speculation U.S. fuel supplies declined and after the Federal Reserve signaled it will maintain steps to sustain the economic recovery. Futures climbed as much as 0.4 percent in New York. A “preponderance of data” would be needed before the central bank started removing stimulus, Fed Chairman Ben S. Bernanke said yesterday. Gasoline and distillate inventories probably shrank last week, while crude stockpiles expanded, according to a Bloomberg News survey before data from the Energy Information Administration today. World powers and Iran are resuming talks in Geneva over the Persian Gulf nation’s nuclear program. “It’s not surprising, in the absence of any other factors, that there is a little bit of positive sentiment in the market on a risk-reward basis, particularly for short-term traders,” said Michael McCarthy, a chief strategist at CMC Markets in Sydney. “But all of this could be […]

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WTI Oil Rises From 5-Month Low as Refinery Use Climbing

West Texas Intermediate oil rose from a five-month low on speculation that demand for crude increased as refineries boosted production after ending seasonal maintenance. Futures advanced 0.3 percent. An Energy Information Administration report tomorrow will probably show that refineries utilized 89.2 percent of capacity last week, up 0.5 percentage point from Nov. 8, according to a Bloomberg survey. Crude supplies gained a ninth week in the poll. Talks between Iran and the five permanent members of the United Nations Security Council plus Germany will resume tomorrow in Geneva. “I’ve changed my outlook for WTI from bearish to bullish,” said Stephen Schork , president of the Schork Group Inc. in Villanova, Pennsylvania . “We are coming out of turnaround season and can expect refiners to boost operating rates, which will increase crude demand.” WTI for December delivery rose 31 cents to settle at $93.34 a barrel on the New York […]

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World powers, Iran make new attempt to clinch nuclear deal

GENEVA (Reuters) – World powers aim to clinch a preliminary deal to curb Iran’s nuclear program in politically charged talks resuming in Geneva on Wednesday to end a long standoff and head off the risk of a wider Middle East war. The United States, Russia, China, France, Britain and Germany came tantalizingly close to winning concessions from Iran on the scope of its nuclear work in return for some sanctions relief at negotiations in the Swiss city on November 7-9. Top policymakers from the sextet have since said that an interim accord on confidence-building steps to start defusing a decade of suspicion and hostility between the West and Iran could finally be within reach. But diplomats caution that differences remain and could still prevent an agreement during the talks Wednesday through Friday. "There is a good chance. There is a hope the Iranians realize it’s a good deal and […]

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A look at Iran nuclear sites from mine to reactor

AP Photo Nuclear talks resume Wednesday between Iran and world powers after the last round stalled over issues that include Iran’s planned heavy water reactor and the levels of uranium enrichment. Iran later agreed to provide U.N. nuclear inspectors with greater information and access, but it’s uncertain whether the concessions will be enough to push envoys in Geneva closer to a deal. Iran seeks a rollback in U.S.-led economic sanctions, while the West is pressing it to curb its uranium enrichment – the process to make nuclear fuel. In the past decade, Iran’s nuclear program has advanced on many fronts and more facilities are planned. —- RAISED AT TALKS – ARAK HEAVY WATER REACTOR: Such reactors can run on non-enriched uranium as fuel and uses a molecular variant of water as a coolant. Heavy water reactors also produce more plutonium byproducts than conventional reactors. Plutonium can be used in […]

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Iran says sees good chance of success at Geneva nuclear talks

DUBAI/ROME (Reuters) – The protracted dispute over Iran’s nuclear program can now be resolved and world powers should seize a "historic opportunity" to clinch a deal, Iranian Foreign Minister Mohammad Javad Zarif said in remarks released on Tuesday. Iran is to meet with the six powers on Wednesday in Geneva for a third round of negotiations in a month, nearly two weeks after the sides neared an initial accord that would curb Iran’s nuclear activity in exchange for limited relief from sanctions. In Washington, President Barack Obama attempted to build support for a prospective Iran deal with skeptical members of the U.S. Senate, some of whom have been considering adding new sanctions on Tehran in a move that the White House argues would harm diplomatic efforts. In another sign of a thaw between the West and Iran, David Cameron telephoned Hassan Rouhani, marking the first time a British prime […]

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Wave of attacks in Iraqi capital kills at least 24

BAGHDAD (AP) — A wave of attacks, mostly by car bombs, hit mainly Shiite and commercial areas of Baghdad on Wednesday morning, killing at least 24 people and wounding 87, Iraqi officials said. The bombings were part of a surge in violence that has rocked Iraq over the past months as insurgents seek to thwart the Shiite-led government’s efforts to stabilize the country. Five of Wednesday’s attacks were carried out by parked car bombs while at least one was carried out by a remotely detonated bomb, police officials said. The deadliest attack was in the central Sadria neighborhood, where a parked car bomb went off at an outdoor market, killing five shoppers and wounding 15, they said. Other attacks took place in Hurriyah, Shaab, Tobchi, Karrada, Azamiyah and Amil neighborhoods. Medical officials confirmed the causality figures. All officials spoke on condition of anonymity as they were not authorized to […]

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Beirut Bombs Strike at Iran as Assad’s Ally

BEIRUT, Lebanon — A double bombing struck the Iranian Embassy compound in Beirut on Tuesday, in the deadliest assault on Iran’s interests since it emerged as the most forceful backer of the Syrian government against an armed insurgency. The frontal attack struck a symbol of the country’s powerful influence in Lebanon and neighboring Syria. The Abdullah Azzam Brigades, an offshoot of Al Qaeda that operates in Lebanon, claimed responsibility for the bombings, which killed at least 23 people, including an Iranian diplomat. Syria, Iran and Hezbollah, the Lebanese militant organization, pointed fingers at Israel and Saudi Arabia, and officials said it was unclear who had carried out the attack. Regardless, it was quickly seen as retaliation against Iran and Hezbollah, Iran’s ally, for supporting the Syrian government. The double bombing highlighted the risks and costs that Iran faces over Syria, which some analysts have called Iran’s Vietnam. Others say […]

Posted On : Published By : Tom Whipple