Oil is gaining ground in early morning trade as Asian and
European shares rise on the back of strong economic data from China
and Japan in particular. Beijing reported that Chinese exports rose
to their highest level in six years in May, rising 48.5% from a
year ago. Meanwhile, Japan's economy grew at an annualized 5% rate
in the first quarter.
Gold, on the other hand, is falling as investors' willingness to
take on risks increased on renewed hopes for the global economy. In
addition, the yellow metal came under selling pressure as the euro
rose following comments by China's national pension fund chief Dai
Xianglong who said that the European unit would weather the ongoing
sovereign debt crisis.
At 0755 ET, Brent crude is up 0.5% at $74.64 a barrel, while
light sweet crude is up 0.7% at $74.83 a barrel, and natural gas is
up 1.0% at $4.72 a million British thermal units.
Gold is 0.3% weaker at $1,225.70 an ounce, while silver is down
0.9% at $18.04 an ounce, but copper is up 0.2% at $2.85 a
The International Energy Agency lifted its 2010 forecast for
global oil demand, as it anticipates worldwide use to rise by 1.7
million barrels a day, or up 2% on year, to 86.4 million barrels.
That marks a rise of 60,000 barrels from the agency's earlier
Chinese oil import rose 29% during the first five months of the
year compared to the same period a year ago to 95.7 million metric
tons on strong demand for motor fuel and electricity, according to
the General Administration of Customs.
BP plc (
) shares fell to a 13-year low in London trade as the company
continues to face attack for its handling of the Gulf of Mexico oil
spill. In U.S. pre-market trade, the stock is gaining the bulk of
the decline back as it bounces 11% higher. BP has estimated that
the total cost of response efforts to the worst U.S. environmental
disaster has reach over $1.4 billion to date.
Australia's Kingsgate Consolidated Ltd (
) soared as the gold mining group was raised to outperform to
sector perform by RBC Capital. The mining group was also granted
tax concessions by the Thai government for a new processing plant
at its flagship Chatree gold mine in the country.
South Africa's Impala Platinum Holdings LTD (
) fell as did Anglo Platinum Ltd (
) as platinum prices continued to fall. The metal is a key
component for clean emissions technology used by auto
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