NYMEX-Crude steadies near $89 as US woes offset Middle East tensions

SINGAPORE Tue Dec 4, 2012 5:51am IST

Inside the Peshawar school

Inside the Peshawar school

The aftermath inside the Pakistan school where at least 132 students and nine staff members were killed by Taliban gunmen.  Pictures 

SINGAPORE Dec 4 (Reuters) - U.S. crude held around $89 per barrel in early Asian trade on Tuesday, as weak manufacturing data from the United States and worries over its fiscal deficit offset supply concerns caused by tensions in the Middle East.

FUNDAMENTALS

* U.S. crude futures fell 8 cents to $89.01 per barrel at 0006 GMT after topping $90 per barrel in the previous session.

* U.S. Republicans proposed steep spending cuts on Monday and gave no ground on a higher tax plan for wealthy citizen, suggesting that plans to avert the "fiscal cliff" may lean more towards tightening the purse strings.

* U.S. manufacturing contracted to a three-year low in November on worries over the fiscal deficit negotiations and a delayed impact of Hurricane Sandy.

* The 20-month old conflict in Syria worsened after the government spokesman fled the country and the United Nations announced that it was withdrawing all non-essential staff from the Middle Eastern country.

* Israel rejected criticism from the U.S. and Europe of its plans to expand its settlements after the United Nations' de facto recognition of Palestine as a state.

* U.S. commercial crude oil stockpiles likely rose marginally last week while gasoline stockpiles were expected to show larger builds, a preliminary Reuters poll of six analysts showed on Monday.

MARKETS NEWS

* U.S. stocks struggled to extend the previous week's gains, dropping on Monday as disappointing U.S. factory numbers dampened optimism about China's economic growth.

* The euro climbed for the fourth straight session against the dollar on Monday to touch a six-week high as news from Spain and Greece allayed concerns about those debt-burdened countries, while data from China eased worries about global economic growth.

DATA/EVENTS (GMT)

0330 Australia RBA cash rate Dec

1000 Euro zone Producer prices Oct

1100 Brazil Industrial output Oct

1245 U.S. ICSC weekly chain store sales

1355 U.S. Redbook weekly retail sales

1445 U.S. ISM-New York index Nov

2130 U.S. API weekly crude stocks (Reporting by Ramya Venugopal; Editing by Ed Davies)

Economic Pulse

REUTERS SHOWCASE

New Tax Rules

New Tax Rules

Government to compensate states for revenue losses from new GST.   Full Article 

To Boost Growth

To Boost Growth

Crank up public spending to revive growth - chief economic adviser.   Full Article 

Bold Steps

Bold Steps

SpiceJet rescue plan marks bold bet on Indian aviation recovery.   Full Article 

New Airline

New Airline

Tata, Singapore Air venture Vistara to take off on Jan 9.  Full Article 

Reuters Exclusive

Reuters Exclusive

Google aiming to go straight into car with next Android – sources.  Full Article 

26/11 Plotter

26/11 Plotter

Pakistan to challenge bail for Mumbai attack "mastermind".  Full Article 

Chinese Economy

Chinese Economy

China revises up size of 2013 economy, sees no effect on 2014 growth.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage