U.S. crude hovers above $92, eyes 2nd modest weekly gain

U.S. oil futures steadied above $92 a barrel on Friday and were heading for a modest gain for a second week in a row on falling U.S. crude stocks, but investors were keeping an eye on the firmer dollar which has weighed on both commodities and equities.

FUNDAMENTALS

* U.S. crude for November delivery was up 5 cents at $92.58 a barrel by 0033 GMT. The contract was up 0.2 percent for the week following gains in recent sessions spurred by an unexpected decline in U.S. crude stockpiles.

* Brent oil gained 3 cents at $97.03 per barrel. It is down 1.4 percent so far for the week amid ample global oil supplies.

* The dollar is trading near four-year highs against a basket of currencies and is on track to stretch gains to an 11th week in a row as the U.S. economy picks up and expectations rise that the Federal Reserve will start raising borrowing cost next year. A firmer greenback makes dollar-priced commodities such as oil more expensive for buyers using other currencies.

* Libya’s crude output has reached 925,000 barrels per day, the highest since before militias turned on each after the overthrow of Muammar Gaddafi, and adding to growing global supplies.

* Top oil exporter Saudi Arabia is likely to keep its output steady throughout the rest of the year as world consumption is expected to rise and domestic demand for crude eases during the winter.

* French fighter jets struck Islamic State targets in Iraq on Thursday, and the United States hit them in Syria, as a U.S.-led coalition to fight the militants gained momentum with an announcement that Britain would join.

* Malaysian state-owned oil and gas company Petronas it might pull out of a roughly $10 billion liquefied natural gas project in Canada due to what it said was the country’s slow progress developing a taxation plan.

* Time is running out for India’s aging state-run oil refineries as the new government of Prime Minister Narendra Modi looks set to free up diesel prices and open the gates to private sector competition.

MARKETS NEWS

* Asian shares got off to a rocky start after a sharp drop on Wall Street, which curbed enthusiasm for the dollar even after the U.S. unit touched multi-year highs in the previous session.

DATA AHEAD (GMT)

0600 Germany GfK consumer sentiment Oct

0600 Germany Import prices Aug

0645 France Consumer confidence Sep

 

Gold set to snap 3-week losing streak but caution prevails

SINGAPORE, Sept 26 (Reuters) – Gold retained overnight gains on Friday and looked set to snap a three-week losing streak on weaker equities, but it continued to be in danger of breaking below the key $1,200-an-ounce level as the dollar was poised for an eleventh week of gains. FUNDAMENTALS * Spot gold was steady at $1,223.10 an ounce by 0035 GMT, on track for a gain of 0.5 percent for the week. * Gold rose 0.5 percent on Thursday, rebounding sharply from a nine-month low touched earlier in the session, as a sharp sell-off in U.S. equities prompted investors to buy bullion as a safe haven. * Investors will be focused on the U.S. GDP data to be released later today to gauge the strength of the economy and its impact on the Federal Reserve’s monetary policy. * Strong data could prompt the Fed to increase rates faster and sooner than expected. An increase in rates could hurt non-interest-bearing bullion, and boost the dollar further. * Traders believe gold is still susceptible to falling below $1,200 – a key psychological level – which could trigger further selling. * Gold got little support from the physical markets. China’s net gold imports from main conduit Hong Kong tumbled in August to their lowest since May 2011 due to weak demand in the world’s biggest bullion consumer. * Britain plans to extend laws criminalising the rigging of Libor interest rates to seven other financial benchmarks – including gold and silver fixes – by the end of this year, the finance ministry said on Thursday. * The London Bullion Market Association said on Thursday it appointed Citigroup as a market maker, underscoring the bank’s ambitions to expand into the precious metals sector while others are exiting due to regulatory concerns. * For the top stories on metals and other news, click or MARKET NEWS * Asian shares got off to a rocky start on Friday after a sharp drop on Wall Street, and the dollar index edged away from a four-year peak hit in the previous session. DATA/EVENTS (GMT) 0600 Germany GfK consumer sentiment Oct 0600 Germany Import prices Aug 0645 France Consumer confidence Sep 1230 U.S. GDP Final Q2 PRICES AT 0035 GMT Metal Last Change Pct chg Spot gold 1223.1 0.66 0.05 Spot silver 17.51 0.05 0.29 Spot platinum 1313.6 7.85 0.6 Spot palladium 799.93 0.18 0.02 Comex gold 1223.8 1.9 0.16 Comex silver 17.535 0.097 0.56 Euro 1.2753 DXY 85.147 COMEX gold and silver contracts show the most active months (Reporting by A. Ananthalakshmi)

Read more: http://www.dailymail.co.uk/wires/reuters/article-2770277/Gold-set-snap-3-week-losing-streak-caution-prevails.html#ixzz3bzDFmGSm
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