Oil is falling in early morning trade as stocks worldwide
continue to decline on prevailing worries about the euro zone's
economic outlook. The euro's drop against the greenback reflected
such concerns, and anxiety about Europe's financial footing is
putting a damper on global growth prospects, pushing back energy
Investors are turning to the U.S. dollar as they sell off
commodities, including oil as concerns about the contagion effect
of Europe's sovereign debt show no signs of abating.
At 0750 ET, Brent crude is down 2.3% at $72.01 a barrel, while
light sweet crude is 1.5% lower at $68.80 a barrel, and natural gas
is up 0.5% at $4.18 a million British thermal units.
On the corporate front, Finland's Fortum said it would like to
acquire Russian power generation assets or make an asset swap. The
deputy head of the group's Russian unit, Roman Zorabyants, did not,
however, provide further details to reporters.
"We are prepapring a portfolio of assets we might be interested
in but are not holding any talks for now," Zorabyants said, but
added that the assets the company was eyeing were in locations
where Fortnum was already present.
Peabody Energy Corp. (
) failed to buy out Australia's Macarthur Coal Ltd (
), but it continues to look for deals in Australia as coal demand
booms and the country is strategically located to Asia, according
On Capitol Hill, a Senate appropriations subcommittee will be
holding a hearing on mining safety. The chairman of Maasey Energy
) Don Blankenship will be among those called to testify after an
accident at the company's Upper Big Branch mine in West Virginia
led 29 workers to die.
Meanwhile, the Web site operated by credit rating agency Moody's
released a report stating that the Gulf of Mexico oil spill by BP
) will not have a major impact on the U.S. economy. Economy.com
argued that while businesses in Louisiana, Mississippi, Alabama,
and Florida have been hurt by the rig explosion that led to the
spill, thos eplass represent only 1% of GDP, "so broad
macroeconomic effects are unlikely, at least in the near term."