TOKYO, Jan 5 (Reuters) - U.S. crude futures extended gains to
a ninth day on Tuesday, after gaining more than $2 to settle at
the highest in nearly 15 months a day earlier as cold weather in
the United States and other big consumers fuelled demand for
heating fuel.
FUNDAMENTALS
* NYMEX crude for February delivery <CLc1> was up 22 cents at
$81.73 a barrel by 0008 GMT, after settling up $2.15 at $81.51,
the highest close since Oct. 9, 2008.
The contract is near the 2009 high of $82 hit on Oct. 21.
* Markets were also keeping a close eye on an oil pricing
dispute between Russia and Belarus that briefly cut off supplies
to the Eastern European nation. Russia on Monday said it had
resumed supplies to refineries in Belarus, but tensions are still
simmering. []
* Frigid temperatures were expected to boost U.S. heating
demand to 21 percent above normal, with consumption in the U.S.
Northeast, the largest heating oil market, seen 11 percent above
average levels. [] []
Unusually cold weather in Britain is expected to continue
into the second half of January after the coldest December since
1995, while colder temperatures in Europe were seen gradually
spreading from the northeast to southwest during the next few
days. [] []
* Money managers increased their net short natural gas
futures positions in the week ended Dec. 29, adding 2,410
contracts to the total, the U.S. Commodity Futures Trading
Commission said in a report on Monday. []
* A Reuters preliminary poll ahead of weekly U.S. inventory
data showed forecasts for a 1.9 million barrel drawdown in
distillate stocks, which include heating oil and diesel fuel,
last week.
Crude stocks were seen unchanged and gasoline supplies
higher. []
MARKETS NEWS
* U.S. stocks climbed broadly on Monday after a report showed
the manufacturing sector expanded for a fifth straight month,
lifting confidence in the global economy as investors eye
fourth-quarter earnings.
The rally, which marked the first trading day of 2010, drove
both the Dow and the S&P 500 to their highest closes in 15
months, while the Nasdaq ended at a 16-month high.
* Crude got support from a weak dollar.
The U.S. dollar fell on Monday as optimism about a global
economic recovery encouraged investors to seek riskier
investments such as stocks and commodities at the expense of the
greenback.
DATA/EVENTS
* The following data is expected on Tuesday:
- 1000 GMT--Euro Zone Inflation Flash/Dec
- 1245 GMT--U.S. ICSC/GS Chain Stores Sales/Weekly
- 1355 GMT--U.S. Redbook Retail Sales
- 1500 GMT--U.S. Factory Orders/Nov
- 1500 GMT--U.S. Pending Home Sales/Nov
- 2130 GMT--American Petroleum Institute Data/Weekly
- No set time: U.S. domestic Truck/Car Sales/Dec
RELATED NEWS
> GLOBAL MARKETS-Financial markets start 2010 upbeat []
PRICES
Oil prices as of 0008 GMT
Contract Mnth Price Change Day ago pct MA-20*
NYMEX Contracts
US Crude FEB0 $81.73 +0.22 +$2.15 +2.71% $74.32
Heat Oil FEB0 219.29 +0.24 +7.49 +3.54% 199.17
RBOB FEB0 211.15 +0.71 +5.15 +2.51% 192.48
Natgas FEB0 $5.848 -0.036 +$0.312 +5.60% $5.414
ICE Contracts
Brent FEB0 -- +0.00 +$2.19 +2.81% $74.87
Gasoil JAN0 -- +0.00 +$18.25 +2.87% $606.53
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)
