Europe's Severe Cold

(Reuters) - Oil prices at record levels in euro terms are threatening to rock the euro zone's economy more than might be expected, with those countries least capable of riding out a shock being the worst hit. Standard estimates of the impact of oil prices on the euro zone economy are that a 10 percent price hike dents annual growth by some 0.2 percent in the ensuing three years, with disagreement over whether the hit is greater at the start or at the end. However, these projections do not take into account the euro/dollar exchange rate and may underestimate the impact at a time of widespread austerity. Nor do they reflect potential differences across euro zone countries. In dollar terms, oil prices are still some 13 percent short of the $147.50 per barrel Brent peak hit in July 2008. ...

(Reuters) - Brent oil rose slightly on Tuesday and U.S. crude jumped more than 1.5 percent, bolstered by an unplanned outage at a Canadian oil sands plant and optimism about an agreement on Greece's debt problems. An Alberta plant that processes Canadian oil sands was expected to be shut for two or three weeks, adding lift for U.S. crude and helping narrow its deficit to Brent. Brent's premium to U.S. crude oil widened in early trade to more than $20 per barrel, its highest since October, before a brief but sharp reversal by Brent and a rally by the U.S. contract narrowed the spread back below $18 and left it at $17.82 based on settlements. "The spread got above $20 and it looks like some big players came in and pulled it back, then the dollar fell on expectations a Greece debt deal is ...

(Reuters) - Brent pared gains on Tuesday after rising above $117 per barrel to push its premium to U.S. crude above $20 a barrel, triggering profit taking and helping U.S. crude recover and rally. Fears that Iran would stop exports to the European Union in advance of the EU's embargo set for July, along with Europe's severe cold snap, had lifted Brent despite concerns Greece's debt crisis would result in curbed economic growth. U.S. crude had been weighed down by rising domestic stocks and tepid demand that was highlighted in recent government data. However, data has started painting an improving jobs picture that is more supportive to oil. Brent's premium to U.S. crude oil widened to more than $20 per barrel on Tuesday, its highest since October, then a sharp reversal by Brent and ...

(Reuters) - The euro was underpinned on Tuesday by hopes a way would be found to push through a second bailout deal for Greece, though fresh signs of exposure to Europe's economic troubles among leading banks rekindled investor unease, sending shares lower. U.S. stock index futures pointed to the unresolved Greek deal weighing on Wall Street at the open, ahead of Senate testimony from Federal Reserve Chairman Ben Bernanke that may grab the spotlight at 1500 GMT (10 a.m. EST) after last week's strong jobs data. Greece's prime minister and leaders of its main political parties are set to resume talks later Tuesday on new austerity measures demanded by the EU in return for another bailout. The deal needs to be approved by February 15 if the money is to be available in time to meet a March ...

(Reuters) - Brent crude oil rose above $116 per barrel to a six-month high on Tuesday as threats from Iran to ban exports to some European states stoked supply concerns, overshadowing fears that Greece's debt crisis was worsening. Brent's premium to U.S. crude oil stayed around $19 a barrel, near its highest since November, as a severe wintry weather spread across Europe and as simmering tensions between the West and Iran escalated. But Greece's wrangling over a bailout fund helped cap those gains. Front-month Brent touched $116.70 , up 77 cents and its highest since early August, before easing back to trade around $115.68 a barrel by 4:20 a.m. ET, down 25 cents. U.S. oil slipped 30 cents to $96.61. "The geopolitical events surrounding Iran and the Middle East and the severe cold ...

(Reuters) - Brent futures held steady near $116 on Tuesday, after settling at a six-month high in the previous session, due to a cold spell in Europe and supply concerns from the Middle East, while fears Europe's debt crisis was worsening weighed on the market. Brent's premium to U.S. oil stayed around $19 a barrel, near its highest since November, due to the weather and as the United States further tightening sanctions against Iran, stoking already simmering tensions in the region. But Greece's wrangling over a bailout fund helped cap those gains. Front-month Brent fell 16 cents to $115.77 a barrel by 0546 GMT, after gaining for five straight days. U.S. crude slipped 17 cents to $96.74. "The geopolitical events surrounding Iran and the Middle East and the severe cold weather sweeping ...

The Week Ahead Highlights * EUR rebound is fundamentally suspect * Has Europe's sovereign crisis turned a corner? * Fears of aggressive China tightening may unwind soon * A chilly fourth quarter for the UK * Precious Metals may enter Q1 2011 predicted "Buy zones" next week * Key data and events to watch next week EUR rebound is fundamentally suspect The EUR finished out the past week at two month highs against the USD and posted strong rebounds on the crosses as well. The EUR recovered even after EU finance ministers failed to deliver a concrete long-term debt resolution mechanism (see more below), postponing a likely plan to late March. While there has been some movement on the part of Germany to show greater willingness to provide assistance to the periphery, ...