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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (41981)	11/30/2005 11:58:34 AM
From: mishedlo	Respond to of 116555

UPDATE 3-Oil slides toward $56, eyes on US fuel stock rise Wednesday, November 30, 2005 1:35:42 PM reuters.com (Updates prices) LONDON, Nov 30 (Reuters) - Oil eased to $56 a barrel on Wednesday, extending a week-long slide due to mild temperatures in the U.S. northeast that have curbed demand and given refiners time to top up inventories. OPEC ministers appear unconcerned by the price fall and have indicated this week that the group will keep the taps open when it meets next month. An Iranian official was quoted as saying on Wednesday that OPEC would even tolerate a drop towards $40. "Because crude prices are at a suitable level, OPEC is not expected to adopt a new position at its next meeting," Iran's head of OPEC affairs, Javad Yarjani, was quoted as saying by the Mehr news agency. "Even if the oil price comes down to $40, OPEC countries will not take serious action." OPEC ministers meet in Kuwait on December 12. U.S. crude oil <CLc1> was down 10 cents at $56.40 a barrel by 1430 GMT, off a low of $55.72. London Brent crude <LCOc1> also dipped 10 cents to $54.22. OPEC's own reference price, based on its own crude, is normally $7-8 below U.S. oil. "OPEC has made sure there's no shortage of crude oil and the world refining system has responded to the (profit margin) incentives that the hurricanes have provided, plus demand is a bit lower year-on-year," said Michael Coleman, managing director at Singapore-based commodity fund manager Aisling Analytics. The cost of a barrel of U.S. oil has fallen a long way from its end August record of $70.85, but it is still up by almost a third since the start of the year as the rapidly expanding economies of India and China compete for supplies. AMPLE STOCKS U.S. weekly stock data due at 1530 GMT will set the tone for the market in the coming days. U.S. heating oil is already nine percent above a year ago partly because of mild temperatures in the northeast, the world's biggest market. Kerosene stocks in Japan, the world's number three consumer, are four percent above the five-year average. U.S. weekly inventories of total distillates are likely to have risen by 800,000 barrels last week, a Reuters survey of analysts [EIA/S] showed. "The expectation for an inventory build is built in across all the product areas with an outside risk of a surprise on heating oil," said Craig Pennington, director of global energy research at Schroders. Gasoline stocks were expected to have risen 1.5 million barrels. Crude oil stocks, which are well above their seasonal norm, were forecast to have inched down 100,000 barrels. "Every warm day is a day lost for the bulls," said Coleman. "We would need a really severe, prolonged cold spell -- say six to eight weeks -- to begin to make a big dent in inventories."

To: Knighty Tin who wrote (41981)	11/30/2005 12:21:50 PM
From: mishedlo	Respond to of 116555

Is China set for deflation? The risk of deflation has long gone in the US, and it is even waning in Japan. Not so in China. Bloomberg columnist William Pesek Jr. warns that Deflation looms as China's economy cools off: neweconomist.blogs.com The risk of deflation in the US has never been greater. Mish