News & Event
US Crude Steadies Above $99, S.Sudan Supports

Published: Sunday, 29 Jan 2012 | 7:35 PM ET
By: Reuters

U.S. crude oil steadied above $99 a barrel on Monday, supported by the shutdown of oil production in South Sudan and concerns that OPEC member Iran could soon halt its exports.

NYMEX crude for March delivery [CLC  51.77    0.05  (+0.1%)] edged up one cent to $99.57 a barrel by 0002 GMT after falling 14 cents the previous session.

London Brent crude [LCOC  16.98    -0.72  (-4.07%)] rose 16 cents to $111.62 a barrel.

South Sudan has shut down daily oil output of around 350,000 barrels in a row with Sudan over export transit fees and will only restart after the two reach a deal covering border security and the disputed Abyei region, its oil minister said.

Iran sent conflicting signals in a dispute with the West over its nuclear ambitions, vowing to stop oil exports soon to some countries but postponing a parliamentary debate on a proposed halt to such sales to the European Union.

U.S. gasoline futures jumped to their highest since late August on Friday on news that ConocoPhillips shut a gasoline-making unit at its Bayway refinery in New Jersey to repair a mechanical problem.

The euro hovered at six-week highs against the dollar on Monday, but faced a subdued session in Asia as investors awaited confirmation that Greece has secured a long-awaited debt deal that will help it avert a messy default.

EU leaders will sign off on a permanent rescue fund for the euro zone at a summit on Monday and are expected to agree on a balanced budget rule in national legislation, with unresolved problems in Greece casting a shadow on the discussions.

Italy's six-month funding costs fell sharply on Friday to levels last seen before the country came to the fore of the euro zone debt crisis last summer, helping power a rally in its bonds ahead of Monday's more challenging sale of longer-dated debt.

The U.S. economy grew at its fastest pace in 1-1/2 years in the fourth quarter, but a rebuilding of stocks by businesses and slower business spending warned of weaker growth in early 2012.