Oil Fuels Europe

Ivaylo
23 Jun, 2006
New York City

Europe

[R]6:30AM Europe edges higher in early trade on oil stocks.[/R]
European markets were higher in early trading. The London FTSE 100 inched up 0.3% at 5,699, the German DAX 30 rose 0.2% to 5,545, the French CAC 40 advanced 0.4% to 4,821. Oil producers including France''s Total, 1.6% higher, led markets up after Deutsche Bank said the sector as a whole was undervalued and upgraded Royal Dutch Shell and Statoil. Shell advanced 1.5% and Statoil rose 1.2%. One company benefiting from the Merger and acquisition theme was Associated British Ports which agreed to be bought for 910 pence a share, or 2.8 billion pounds ($5.17 billion) from a consortium led by Goldman Sachs. AB Ports shares rallied 3.8%. Mittal Steel remained flat in Amsterdam due to increasing media speculation that Arcelor over the weekend will agree to another improved Mittal offer.

Crude oil futures slipped slightly but remained firm at $70 a barrel on Friday, anchored by strong fuel demand, refinery glitches and jitters about the unresolved tension between the U.S. and Iran. Gold bullion opened Friday at a bid price of $583.10 a troy ounce, lower than $586.00 late Thursday. The dollar was trading at 116.17 yen by midday in Europe, up from 116.08 late Thursday in New York. The euro purchased $1.2558, compared with $1.2582, while the British pound slipped to $1.8247 from $1.8281.

[R]5:15AM Gold and silver drop on dollar strength.[/R]
August gold declined $5.60 to $585.40 a troy ounce on NYME. July silver shed 21 cents to $10.21 an ounce. July platinum slipped $17.80 to $1,176.10 an ounce. September palladium lost 60 cents to $313.90 an ounce. The benchmark September copper contract ended 6.15 cents lower at $3.0485 per pound.

Crude oil futures rallied again and briefly advanced above $71 after refinery disruptions in Louisiana powered already soaring gasoline futures. The August crude futures contract finished 51 cents higher to close at $70.84 a barrel after advancing to $71.20 a barrel. July gasoline futures gained 5.2 cents to $2.1180 a gallon. On the New York Board of Trade, Arabica coffee futures closed higher. July advanced 0.6 cent to 95.7 cents a pound. Futures on raw sugar in foreign ports for July finished up 0.01 cent at 15.75 cents a pound.