Oil Slips to $80, Natural Gas Notches Lower by Nancy Agin | Rigzone | Friday, March 26, 2010 Extending its sell-off for a third consecutive session, NYMEX crude slipped to $80 a barrel ahead of the weekend on downbeat economic data and geopolitical concerns. Additionally, NYMEX gasoline futures also trickled down Friday to $2.21 a gallon. "Today, there were market conditions that should have been supportive," commented Bill O'Grady, chief markets strategist at St. Louis-based Confluence Investment Management LLC. "However, in the broader context, prices are still holding up pretty well." The analyst pointed to a weaker greenback, a bailout arrangement for cash-strapped Greece and an overseas geopolitical flare-up resulting in the sinking of a South Korean naval ship as usual impetuses for oil bulls to take control of the market. Overshadowing these bullish factors, however, the U.S. Commerce Department today announced a downward revision in the 4Q GDP. On a positive note, O'Grady sees gasoline consumption steadily creeping higher as the summer driving season draws near, a factor helping to fuel the market's optimism for improving demand. NATURAL GAS NOTCHES LOWER Also posting a negative movement on the NYMEX today, natural gas spot prices at the Henry Hub settled a notch lower at $3.87 per thousand cubic feet. "Seasonally, this is a weaker time of year," O'Grady underscored. "But, it has been a good season. People forget we went into the winter season with some 4 Tcf in storage, and we're going to end up with around 1.7 Tcf going into the refill season." "Had we not had that cold of a winter, who knows how low prices would have gone. We may have had prices below $2 Mcf," the analyst added
Petrobras Rakes in $15.5B for Fiscal Year '09 Petrobras | Friday, March 26, 2010
Petrobras reported its consolidated results of the fourth quarter 2009 (4Q09) and 2009 fiscal year, in accordance with generally accepted accounting practices in United States (U.S. GAAP). The consolidated net income reached U.S. $15.5 billion in 2009, (U.S. $3.54 per ADS), compared to U.S. $18.9 billion in 2008 (U.S. $ 4.30 per ADS). The decrease was primarily due to lower sales prices of oil and oil products, foreign exchange losses as a result of the Company's net monetary asset exposure in U.S. dollars and the extraordinary expense incurred in 2009 for special government participation taxes. Adjusted EBITDA was U.S. $28.98 billion in 2009, compared to U.S. $31.08 billion in 2008. Excluding the currency exchange effects of the conversion of Reais to U.S. dollars, adjusted EBITDA increased 4.9% in 2009 compared to 2008, despite lower crude oil and oil products prices. The adjusted EBITDA margin increased from 26.3% in 2008 to 31.5% in 2009. Capital expenditures amounted to U.S. $35.1 billion in 2009, most of which was allocated to the expansion of future oil and gas production capacity
NETQUOTE MORNING MARKET REPORT (Oil, Silver and Copper are the May contracts on the New York Mercantile Exchange. Gold is the April contract.)
NEW YORK - Renewed concern about Greece's debt problems short circuited a big stock market rally on Wall Street overnight. The Dow Jones industrial average closed on Thursday (Friday 0700 AEDT) with a gain of just five points after earlier rising to a new high for 2010. Broader indices ended lower. The market's advance fizzled after European Central Bank's president Jean-Claude Trichet told French television that Europe must take responsibility for its financial problems. That raised concerns about when a rescue for Greece might come. Officials from European nations were meeting late on Thursday to discuss their economic problems. Investors have been concerned for months that problems in Greece and other debt-strapped countries in Europe would spread and spoil a global economic rebound. The questions about Greece's financial situation weakened the euro and raised demand for the dollar. The climb in the dollar hit prices of commodities like energy. That, in turn, hurt shares of energy and materials stocks. The worries about Greece and tepid demand at a Treasury Department bond auction for a third straight day overshadowed early enthusiasm about corporate news. Stronger earnings and a higher forecast from retailer Best Buy and a better-than-expected outlook from wireless chip maker Qualcomm lifted the market in morning trading. The companies' reports raised hopes that consumer spending will increase. Higher sales of flat-panel TVs, laptop computers and smart phones are welcome signs because consumer spending is the biggest driver of the economy. When markets settled, the Dow had risen 5.06, or 0.1 per cent, at 10,841.21. The Standard & Poor's 500 index fell 1.99, or 0.2 per cent, to 1,165.73, while the Nasdaq composite index fell 1.35, or 0.1 per cent, to 2,397.41.
LONDON - European main stock markets jumped on Thursday as a possible joint EU-IMF rescue package to help Greece out of its spiralling debt crisis took shape during frantic negotiations in Brussels. London's benchmark FTSE 100 index rose 49.77 points, or 0.88 per cent to finish the day at 5,727.65 points
FRANKFURT - The Dax added 93.95 points, or 1.56 per cent, to 6,132.95.
PARIS - The CAC 40 rose 50.67 points, or 1.28 per cent, to 4,000.48.
TOKYO - Japanese stocks closed up 0.13 per cent on Thursday as a recent dip in the yen raised hopes for recovery among exporters, offsetting lingering worries over Greece's debt crisis. The benchmark Nikkei-225 index added 13.82 points to 10,828.85.
HONG KONG - Hong Kong stocks closed 1.10 per cent lower as concerns over the eurozone debt crisis mixed with a poor lead from Wall Street. The benchmark Hang Seng Index fell 230.07 points to 20,778.55.
WELLINGTON - The New Zealand sharemarket closed slightly higher, unaffected by economic-growth data released on Thursday. The NZX-50 index closed up 4.82 points, or 0.149 per cent at 3,237.5, after opening slightly lower. There were 35 rises and 37 falls. Turnover was worth $NZ78 million ($A60.4 million).
SYDNEY - The Australian share market received mixed leads from Wall Street, with higher precious metal prices and a lower oil price. At 0726 AEDT on the Sydney Futures Exchange, the June share price index contract was two points lower at 4,901 points. In economic news, the Reserve Bank of Australia (RBA) governor Glenn Stevens will address the ACI 2010 49th World Congress in Sydney at 0915 AEDT. The Australian Office of Financial Management conducts a tender for $700 million of June 2014 Treasury bonds. On Thursday, the Australian share market closed slightly weaker after negative overseas leads and heightened concerns over sovereign debt in Europe, and profit-takers targeted cyclical stocks. The benchmark S&P/ASX200 index was down 6.1 points, or 0.12 per cent, at 4,885.4 points, while the broader All Ordinaries index dropped 6.9 points, or 0.14 per cent, to 4,896.3 points.
NYMEX
Oil prices slipped as the dollar rose against other major currencies. Benchmark crude for May delivery fell eight US cents to settle at $US80.53 a barrel on the New York Mercantile Exchange. Crude, which is priced in dollars, tends to fall in price as the greenback rises and makes oil barrels tougher to buy with foreign currency. Oil prices initially gained after the Labor Department reported that claims for jobless benefits dropped more than expected last week, before falling back later in the day. Meanwhile, the futures contract for natural gas tumbled three per cent after the government reported that supplies grew for the first time this year, adding to already bloated reserves. The US had been burning large volumes of natural gas to heat homes and run power generators this winter as heavy snowstorms blanketed parts of the country. But the drawdown wasn't enough to erase huge surpluses built up during the past few years. The Energy Information Administration said that at 1.63 trillion cubic feet, natural gas levels are eight per cent higher than the five-year average. Natural gas for April delivery dropped 12.4 US cents to settle at $US3.981 per 1,000 cubic feet on the Nymex. Prices fell as low as $US3.94 earlier in the day, the lowest on record for the April contract. In other Nymex trading in April contracts, heating oil fell less than a penny to settle at $US2.0693 a gallon, and gasoline lost less than a penny to settle at $US2.2177 a gallon. In London, Brent crude slid a penny to settle at $US79.61 on the ICE futures exchange.
COMEX
April gold futures added $US4.10 to settle at $US1,092.90 per fine ounce. May silver rose 10 US cents to settle at $US16.741, while May copper gained 3.5 US cents to $US3.3805 per pound.
INTERNATIONAL NEWS
LISBON - Portugal's minority government and the main opposition party have agreed on an austerity plan designed to reduce the country's huge debt burden and avoid following Greece into a deeper financial crisis.
WASHINGTON - New claims for unemployment benefits in the US fell more than expected last week as layoffs ease and hiring slowly recovers.
WASHINGTON - Massive Federal Reserve spending is still needed to underpin the crisis-battered US economy, chairman Ben Bernanke has told lawmakers, even as he spelled out the Fed's tentative exit strategy.
SAN DIEGO - Toyota is to face a first US courtroom challenge as lawyers press for angry car owners to be able to bring a multibillion-dollar suit against the Japanese automaker.
LONDON - Russian tycoon Alexander Lebedev has bought Britain's struggling Independent and Independent on Sunday newspapers for a token sum, a year after acquiring another top British title cheaply.
DUBLIN - Ireland's battered economy shrank by a record 7.1 per cent last year and is stuck in a deep recession, official data has shown in another blow for the eurozone as it endures its worst-ever crisis.
BRUSSELS - French President Nicolas Sarkozy and German Chancellor Angela Merkel have struck a deal to help Greece tackle a debt crisis that has dragged down the euro, Sarkozy's office says.
HONG KONG - The Hong Kong utility controlled by the city's richest man Li Ka-shing said it is suing investment bank Merrill Lynch over a collapsed New Zealand mining deal, involving Bluescope Steel, two years ago.
SINGAPORE - The New York Times Company has agreed to pay 160,000 Singapore dollars ($A125,661) US) in damages to Singapore's leaders over an article about political dynasties, the leaders' lawyer said.
LOCAL NEWS
SYDNEY - With personalities like Kyle Sandilands and Jackie O, Hamish Blake and Andy Lee, Eddie McGuire and Gus Worland, Austereo says it's feeling more confident about its radio stations than ever before.
STOCKS TO WATCH ON THE AUSTRALIAN STOCK EXCHANGE TODAY:
AIO - ASCIANO GROUP - down 2.5 cents at $1.85 Transport and logistics company Asciano Group says its chief financial officer Peter McGregor has resigned to pursue other opportunities outside the business.
ACK - AUSTOCK GROUP LTD - untraded at 27 cents Austock Group is assessing its options after the competition watchdog opposed the investment manager and stockbroker's proposed sale of its stake in share registry Newreg Pty Ltd.
ANZ - ANZ BANKING GROUP LTD - down two cents at $25.35 ANZ Banking Group says it will invest up to $US100 million ($A110.23 million) in capital in Indonesia during 2010 to complete the acquisition of the Royal Bank of Scotland's (RBS) retail and commercial businesses in that country, and accelerate organic growth.
BKW - BRICKWORKS LTD - up five cents at $12.65 Brickworks has forecast an improved second half as government spending is expected to increase demand for its building products but remains concerns about the affect of higher interest rates on the housing market.
BHP - BHP BILLITON LTD - down four cents at $43.32 RIO - RIO TINTO LTD - up $1.42 at $78.62 The competition watchdog has raised concerns about a proposed tie up of BHP Billiton and Rio Tinto's Western Australia iron ore assets, saying they could profit by coordinating supply.
CBA - COMMONWEALTH BANK OF AUSTRALIA - down one cent at $57.20 Commonwealth Bank of Australia says it is searching for bolt-on acquisitions for its offshore wealth management operation.
CWN - CROWN LTD - down 22 cents at $8.17 Casino operator Crown will spend $212 million on upgrading the VIP facilities at its Melbourne casino, to remain competitive in attracting high-spending gamblers.
NAB - NATIONAL AUSTRALIA BANK LTD - up 14 cents at $27.51 National Australia Bank says it is well positioned for organic growth in the UK and would not be a forced seller of its Clydesdale and Yorkshire banks.
SOL - WASHINGTON H SOUL PATTINSON AND COMPANY LTD - up 18 cents at $13.80 Washington H Soul Pattinson and Company expects improving results from its subsidiaries after reporting a fall in first half profit.
STO - SANTOS LTD - up 39 cents at $14.76 WPL - WOODSIDE PETROLEUM LTD - up six cents at $47.48 Woodside Petroleum has quashed talk of a $15 billion takeover bid for Santos as analysts suggest the smaller company is more likely to appeal to other predators.
TEN - TEN NETWORK HOLDINGS LTD - down 0.5 cent at $1.845 Network Ten's new 24-hour digital sports channel ONE may be making some sports administrators question the wisdom of taking the fistful of dollars on offer from pay TV. AAP lxs/pe
26-03 074
The Dow Jones Industrial Average appears to be just one or two bullish sessions away from crossing 11,000. Although it�s a benchmark that carries less symbolic weight than the milepost the Dow crossed last October, analysts say investors are right to pay it some attention.
Let�s take a closer look at 11,000. From a technical perspective, the number isn�t a particularly significant point for the Dow, says Ryan Detrick, the senior technical strategist at Schaeffer�s Investment Research. In fact, in at least one way, the real party was over Tuesday. That�s when the Dow crossed 10,800, a technical resistance point (or a mathematically derived indicator of a true market hurdle), says Anu Sharma, the managing director of Nasdaq�s Market Intelligence Desk at Nasdaq.
But that doesn�t mean 11,000 isn�t important. Because individual investors still appear worried that the market will deliver �another face-ripping drop like we saw in September 2008,� crossing the 11,000 mark would be important psychologically, Detrick says. A rally above 11,000 could become a self-fulfilling prophecy if it encourages more retail investors to move money back into the market, he says.
The timing of hitting 11,000 is also significant. Crossing 11,000 would bring the Dow back to a level traders haven�t seen since September 2008. That may feel like a long time ago, but it represents a remarkably short period for a thousand-point gain. The speed of that recovery is psychologically important, Sharma says. �People were saying it was going to take years to come back and we�ve done it essentially in exactly one year,� he says.
Of course, that blazing speed brings up a larger question: What�s fueling this rally? �A lot of traders right now are scratching their heads, saying, �Why are we back at this point?�� Sharma says.
So far, analysts say the bullish run has been less about real growth than traders� belief that a deep recession will be followed by a strong recovery, as has historically been the case. But �there�s no law that says that has to happen,� says Rodney Johnson, the president of HS Dent. The fundamentals on the economy simply aren�t strong enough to support the current rally, Johnson says.
That could mean that a trip above 11,000 might be short-lived. �How far can this rubber band get stretched between what the economy�s doing and what the market is doing before one of them has to capitulate?� Johnson says. �And the economy doesn�t capitulate.�
In fact, if the Dow does strike 11,000, a pullback could be coming as soon as the new quarter begins, Sharma says. The current rally may be just a result of fund managers looking to boost gains as high as possible for the end of the quarter, he says.
Investors looking for clues can watch the bond market for signs of where the Dow is headed. If the yield on a 10-year goes above 4%, that could signal another sharp drop for equities, says John Lekas, the manager of the Leader Short Term Bond Fund. �I think you could flip a coin,� he says. The current rally is momentum-driven, �and maybe the fundamentals catch up, or maybe they go the other way.�
In the near term, some analysts say to expect only more waffling. The market is more likely to pull back by about 5% than it is to climb above 11,000, says Burt White, the chief investment officer of LPL Financial. �As we get closer and closer to that 11,000 mark, it�s kind of like as you get closer and closer to the end zone � each yard is harder and harder to get.�
Read more: Dow 11,000: What Would It Mean? at SmartMoney.com http://www.smartmoney.com/investing/stocks/dow-11000-what-would-it-mean/?cid=1230#ixzz0jVTMaoDq
