SINGAPORE, Nov 3 (Reuters) - Oil rose to a six-month high
above $84 for a second straight session after an industry
report showed declines in U.S. inventories across fuel
categories, a sign chronic oversupply is subsiding at the
world's top user.
Expectations the Federal Reserve will on Wednesday announce
a fresh round of expansionary monetary policy kept markets on
edge and the dollar under pressure, helping commodity prices.
FUNDAMENTALS
* U.S. crude for December <CLc1> gained 42 cents to $84.32
at 0050 GMT, after touching $84.50 earlier, the highest
intraday price since May 4. ICE Brent <LCOc1> rose 32 cents to
$85.73.
* U.S. crude inventories fell by 4.1 million barrels in the
week to Oct. 29, the American Petroleum Institute (API)
reported on Tuesday. That compared with expectations for a 1.2
million barrel increase. [] []
* Distillates stockpiles, including heating oil and diesel,
fell 4.7 million barrels, more than four times the expected 1.1
million barrel draw in a Reuters survey, while gasoline
supplies fell by 3.2 million barrels, against forecasts of
little change.
* Government statistics on inventories and demand follow on
Wednesday from the Energy Information Administration (EIA).
* Strikes at French refineries limited European exports of
gasoline to the U.S., while west-to-east transatlantic
distillates flows probably increased as shortages loomed
because of the walkouts, analysts said.
* Oil prices at $100 a barrel would be more comfortable for
producing nations because of higher food prices and a weaker
dollar, the top oil official for OPEC member Libya said on
Tuesday. []
* The Libyan comments came a day after Saudi Arabian Oil
Minister Ali al-Naimi said oil prices in a $70-$90 range were
comfortable for consumers, signaling a higher acceptable range
from the $70-$80 range previously deemed comfortable.
[]
* Qatar's oil minister also said $70-$90 per barrel would
be reasonable for consumers and producers. []
* Euro-zone manufacturing picked up its pace last month, a
business survey showed Tuesday, one day after
better-than-expected U.S. and Chinese factory data increased
optimism about the global economy and revived risk appetite.
[]
MARKETS NEWS
* The U.S. dollar stayed on the backfoot early in Asia on
Wednesday, with the euro holding above $1.4000 and the Aussie
just off parity as the Federal Reserve looked set to provide
more stimulus to spur a flagging recovery. []
* World stocks neared a two-year high on Tuesday on
stronger-than-expected economic data while the dollar fell as
investors anticipated the U.S. central bank will open the money
spigot to spur the flagging U.S. economy. []
* Asian stocks should gain on Wednesday, as a swing towards
the Republicans in U.S. elections also cheered Wall Street.
[]
DATA/EVENTS
* The following data is expected on Wednesday:
- U.S. durable goods orders, Sep
- U.S. ISM non-manufacturing PMI, Oct
- U.S. EIA petroleum inventories, weekly
RELATED NEWS
* Republicans rolled up key early U.S. election wins on
Tuesday after a long and bitter campaign that could sweep
Democrats from power in Congress and slam the brakes on
President Barack Obama's agenda. []
(Reporting by Alejandro Barbajosa; Editing by Manash Goswami)
