Oil prices fell on Tuesday in early Asian trade after moving
higher in the previous session supported by data showing
higher Chinese demand for oil in November.
FUNDAMENTALS
* On the New York Mercantile Exchange, January crude
slipped 16 cents to $88.45 a barrel at 0130 GMT.
* China's apparent oil demand hit a record 9.3 million
barrels per day in November as refineries made more diesel
than ever to help cover shortages on the domestic market,
Reuters calculations based on preliminary data showed. Crude
oil processing hit a record 8.92 million bpd. []
* China is poised to raise interest rates before the end
of this year, then increase them just twice more in 2011,
relying instead lending controls as its weapon of choice to
fight inflation, a Reuters poll economists showed.
[]
* Temperatures trending colder central and eastern areas
the next few days, and eventually western locales by late week
with energy demand for heating above average.
* A Reuters poll of analysts ahead of weekly government
and industry U.S. inventory data forecast a decline of 2.2
million barrels in domestic crude stocks in the week to Dec.
10. Distillates were forecast 500,000 barrels lower and
gasoline stocks up 1.8 million barrels.
* A Reuters technical analysis showed U.S. oil prices are
technically neutral as its remains within a range of $87.10 to
$89.49 per barrel. A directional move could develop only
after oil escapes from the range, and the sideways mode may
last for one or two trading sessions. []
MARKETS NEWS
* The broad S&P 500 index closed flat and the Dow ended
just above break-even as optimism faded over China's move to
tame inflation and on concerns about a 5.1 percent run-up in
the S&P so far in December. []
* The euro hovered near three-week highs against a broadly
weaker dollar early in Asia on Tuesday with traders citing
solid buying from accounts including Asian central banks that
overwhelmed hedge fund selling, triggering stops along the
way.
* Spot gold edged higher on Tuesday, as investors await a
U.S. Federal Reserve announcement on interest rates and
assessment of the economy, as well as continue to focus on
the possibility of new monetary policy moves by China to
combat inflation.
(GMT) DATA/EVENTS
1000 EZ Industrial output Oct
1000 Germany ZEW Current conditions Dec
1000 Germany ZEW Economic sentiment Dec
1245 U.S. ICSC chain stores yy Weekly
1330 U.S. PPI inflation y/y, NSA Nov
1330 U.S. Producer prices mm Nov
1330 U.S. Producer prices, core mm Nov
1330 U.S. Producer prices, core yy Nov
1330 U.S. Retail sales mm Nov
1355 U.S. Redbook mm Weekly
1500 U.S. Business Inventories mm Oct
1915 U.S. FOMC rate decision Dec
2130 U.S. API weekly crude stocks Dec 10
2130 U.S. API weekly dist. stocks Dec 10
2130 U.S. API weekly gasoline stk Dec 10
* NYMEX January crude options expire on Wednesday.
* The NYMEX January crude contract expires on Dec. 20.
(Reporting by Rebekah Kebede; Editing by Ed Lane)
