TOKYO, Dec 14 (Reuters) - U.S. crude futures extended
declines to a ninth day on Monday to stay below $70 a barrel,
hurt by worries over high oil inventories and a stronger dollar.
FUNDAMENTALS
* NYMEX crude for January delivery <CLc1> was down 28 cents
at $69.59 a barrel as of 2304 GMT, after settling down 67 cents
at $69.87 on Friday, the lowest settlement since early October.
* The downside has been driven by a rally in the U.S. dollar,
after data showed higher-than-expected U.S. retail sales in
November.
A stronger dollar induces investors to sell off commodity
positions and tends to pressure crude prices.
* Money managers cut their net long crude oil position on the
New York Mercantile Exchange in the week through Dec. 8 as oil
futures fell, the Commodity Futures Trading Commission said on
Friday. []
The key speculator group held a 101,743 contract net long
position as of Dec. 8, versus a net long position of 124,468
contracts in the week through Dec. 1.
* Oil storage capacity at Cushing, Oklahoma, the primary U.S.
crude delivery point, has expanded by 5.2 million barrels this
year, cutting the risk that a shortage of tanks could cause oil
prices to plunge. []
* A forecast from the International Energy Agency (IEA)
showed on Friday world oil demand will rise by almost 1.5 million
barrels per day (bpd) in 2010 to 86.3 million bpd, and the rate
of demand growth will also accelerate. []
MARKETS NEWS
* The Dow and S&P 500 closed up for a third straight session
on Friday after several solid consumer-related reports reinforced
investors' confidence in a steady recovery by the economy.
* The U.S. dollar jumped to a two-month high against the euro
on Friday after surprisingly strong U.S. consumer data boosted
expectations the Federal Reserve would raise interest rates
sooner rather than later. []
* The recent drop in the price of oil will not affect OPEC's
inclination to keep its production target unchanged when its
ministers meet later this month, Kuwait's oil minister said on
Sunday. []
Sheikh Ahmad al-Abdullah al-Sabah said he was not worried
about the decline, adding that $70-80 a barrel would be a good
price.
* Baghdad could pump below capacity in coordination with OPEC
policy when deals it is negotiating take output potential to 12
million barrels per day (bpd), Iraqi Oil Minister Hussain
al-Shahristani said on Saturday. []
DATA/EVENTS
* The following data is expected on Monday:
- 2350 GMT--Japan Tankan manufacturing sector mood/Q4
- 1000 GMT--Euro Zone Employment/Q3
- 1000 GMT--Euro Zone Industrial Output/Oct
- 1430 GMT--U.S. EIA Updated Energy Forecasts to 2035
RELATED NEWS
> Iraqis sceptical about glittering promise of oil []
> Iraq aims to power out of war into oil big league[]
PRICES
Oil prices as of 2304 GMT
Contract Mnth Price Change Day ago pct MA-20*
NYMEX Contracts
US Crude JAN0 $69.59 -0.28 -$0.67 -0.95% $75.88
Heat Oil JAN0 190.50 -0.35 +0.56 +0.29% 199.45
RBOB JAN0 183.70 -0.46 +0.65 +0.35% 195.57
Natgas JAN0 $5.248 +0.085 -$0.135 -2.55% $4.725
ICE Contracts
Brent JAN0 $71.66 +0.02 -$0.53 -0.73% $76.90
Gasoil JAN0 $585.25 -1.75 -$20.50 -3.37% $613.98
Note: U.S. heating oil and RBOB gasoline contracts listed in
cents per gallon.
* = 20-day moving average for continuation month.
(Reporting by Osamu Tsukimori; Editing by Chris Gallagher)
