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

SINGAPORE Tue Dec 4, 2012 5:51am IST

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)

Surprise Rate Cut

Reuters Showcase

Insurance Bill

Insurance Bill

Opposition support bolsters prospects for insurance reforms  Full Article 

SBI Share Sale

SBI Share Sale

SBI's up to $2.4 billion share sale likely by end April - sources   Full Article 

Eicher Share Sale

Eicher Share Sale

Truck maker Volvo sells shares in Eicher Motors  Full Article 

Beef Ban

Beef Ban

After beef ban, Hindu groups force abattoirs to close   Full Article 

Monsoon Season

Monsoon Season

Exclusive - India expects better monsoon rains this year  Full Article 

Services Growth

Services Growth

Services growth at eight-month high in Feb - HSBC PMI  Full Article 

'India's Daughter'

'India's Daughter'

Documentary on 2012 Delhi gang rape banned in India  Full Article 

Capex Slashed

Capex Slashed

Cairn India slashes 2015-16 capex on falling crude   Full Article 

Coal Imports

Coal Imports

India coal imports in Feb jump from year ago, but drop m/m  Full Article 

Reuters India Mobile

Reuters India Mobile

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