NYMEX to raise margins for crude, related futures

Reuters: [2008-05-06 23:25:00]

NEW YORK, May 6 (Reuters) - The New York Mercantile Exchange said on Tuesday it will increase margins for its crude oil and related futures contracts, beginning at the close of business on Wednesday.

Margins for the crude oil, crude oil calendar swap, and crude oil financial futures contracts will go up to $7,250 from $6,500 for clearing members, to $7,975 from $7,150 for members and to $9,788 from $8,775 for customers, NYMEX said in a release.

Margins for the NYMEX miNY crude oil futures contract will rise to $3,625 from $3,250 for clearing members, to $3,988 from $3,575 for members and to $4,894 from $4,388 for customers.

Margins for the NYMEX MACI index futures contract will increase to $1,450 from $1,300 for clearing members, to $1,595 from $1,430 for members and to $1,958 from $1,755 for customers. (Reporting by Gene Ramos; Editing by David Gregorio) ((Email: gene.ramos@thomsonreuters.com; + 1 646 223 6054; Reuters Messaging: gene.ramos.reuters.com@reuters.net)) Keywords: MARKETS NYMEX CRUDE/MARGINS

UPDATE 4-High-flying crude gives boost to Toronto stocks

Reuters: [2008-05-06 23:10:00]

(Adds details, quotes)

By Leah Schnurr

TORONTO, May 6 (Reuters) - Oil and gas companies led the way higher for the Toronto Stock Exchange on Tuesday, helping the main index climb nearly 1 percent as crude oil prices notched another record high.

Suncor Energy <SU.TO> was among the biggest gainers, up C$4.62, or 4 percent, at C$121.12 as the price of oil flew up over $122 a barrel on a weaker U.S. dollar and concerns over supply.

The Toronto market's heavily weighted energy sector jumped 3.3 percent. Canadian Natural Resources <CNQ.TO> was up C$4.05, or 4.6 percent, at C$92.00, and Canadian Oil Sands Trust <COS_u.TO> added C$3.68, or 8.3 percent, to C$48.18.

Crude settled up $1.87 at $121.84 a barrel, easing back from a record $122.73 reached earlier in the day. However, Goldman Sachs forecast oil could hit $200 a barrel within the next two years.

"How high can it go? Who knows," said Andrew Martyn, portfolio manager at Davis-Rea.

The S&P/TSX composite index <.GSPTSE> closed up 139.96 points, or 0.98 percent, at 14,414.30 with half its 10 main sectors higher.

The materials sector, home to resource issues, rallied 1.2 percent, while the base metals mining subindex gained 2.4 percent, pulled up by oil's momentum. Teck Cominco <TCKb.TO> rose C$1.48, or 3.2 percent, to C$48.18.

"The mining sector, the gold sector also got boosted, meaning that the whole commodities game seems to be back for who knows how long," said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier.

"We keep saying it's a fad, but (the oil price) comes down and starts to move back up," said Nakamoto, noting that ultimately it's underlying supply and demand that will make a price level sustainable.

Methanex <MX.TO> shares jumped C$3.02, or 12.4 percent, to C$27.40 after the methanol supplier upped its quarterly dividend by 11 percent and said it will buy back up to 10 percent of its common stock.

Fertilizer company Potash Corp of Saskatchewan <POT.TO> was up C$3.03, or 1.5 percent, at C$199.39, and competitor Agrium <AGU.TO> rose C$2.52, or 3 percent, to C$86.75.

Sun Life Financial <SLF.TO> weighed on the index after the insurer warned of a difficult year ahead as it reported that credit market troubles and a strong Canadian dollar stung its operating earnings.

Sun Life finished down C$1.76, or 3.6 percent, at C$47.44, while the financial sector overall gave up 0.5 percent.

Also on the downside, BlackBerry maker Research In Motion <RIM.TO> slid C$2.37, or 1.8 percent, to C$132.25.

Market volume was 393 million shares worth C$7.6 billion. Advancers outpaced decliners 890 to 693. The blue chip S&P/TSX 60 index <.TSE60> closed up 8.71 points, or 1.03 percent, at 855.12.

On Wall Street, stocks rallied after U.S. home finance company Fannie Mae <FNM.N> sought to reassure investors over the outlook for the credit and housing markets.

The Dow Jones industrial average <.DJI> rose 51.29 points, or 0.4 percent, to 13,020.83, while the Nasdaq composite index <.IXIC> was up 19.19 points, or 0.78 percent, at 2,483.31. ($1=$1.00 Canadian) (Editing by Rob Wilson) ((leah.schnurr@thomsonreuters.com; +1 416 941 8056; Reuters Messaging: leah.schnurr.reuters.net@reuters.com))

Keywords: MARKETS CANADA STOCKS

Keywords: MARKETS CANADA STOCKS

*TOP NEWS* Energy

Reuters: [2008-05-06 22:41:00]

For news and data, double-click on the codes in brackets. 
Access to some items may depend on subscription level. 
> European Power and Gas                            [TOP/ELE] 
............................................................... 
TOP STORIES 
> Oil rockets to record $122 on dollar, supply worry[nSIN170894] 
> US sees oil use down on weak economy, high prices [nN06498570] 
> US crude supply seen higher, gasoline lower       [nN06501597] 
> US retail gasoline demand drops as prices rise    [nN06496798] 
> U.S. lawmakers urge scaling back biofuels mandate [nN06487289] 
> Mexico will meet 3 mln bpd end-2008 target-Pemex     [nN08PEC] 
> "Super-spike" could lift oil to $200-Goldman      [nL06914488] 
> Options on $200 oil by Dec have tripled since Jan [nN06481672] 
> Colombia Cano Limon pipeline back up after bombing[nN06469553] 
> Russian oil output falls in Apr, exports rise     [nL06282490] 
> Caspian CPC April oil exports rise 18.5 pct vs Mar[nL06120300] 
> China, Venezuela to ink oil, refinery deal        [nSHA140453] 
> Indonesia considers quitting OPEC as output falls  [nSP162164] 
NIGERIA 
> Nigeria oil rebels pledge truce if Carter mediates[nL06616621] 
> Exxon says Nigeria output back,Shell taking longer[nL06909102] 
MARKETS/REFINERIES 
> NYMEX crude extends rally,ends at record atop $121[nN06507209] 
> U.S. Cash Crude - Sours rally on refiner buying   [nN06577290] 
> Strike at Fos-Lavera still blocking 14 oil tankers[nL06925320] 
> European benchmark  gasoline barges hit a record  [nL06938527] 
> Curacao refinery FCC to be down more weeks-officia[nN06478262] 
> Chevron reports snag at El Segundo refinery--filin[nN06226611] 
> Chevron will restart UK Pembroke units soon       [nL06937211] 
> KPC ready to submit refinery study to China govt  [nPEK154395] 
> Kuwait to launch $19 bln refinery upgrade tender  [nL06540824] 
ANALYSES 
> Nuclear energy heats up US presidential campaign  [nN06421522] 
> Gazprom to reap benefits of Medvedev in Kremlin   [nL25486315] 
> UK gas price surge threatens bigger bills         [nL06564116] 
CORPORATE NEWS 
> Kuwait aims to sign Exxon oil deal by July        [nL06916192] 
> Total says Myanmar operation unaffected by cyclone[nHKG160570] 
> Ukraine leader demands more budget aid for Naftoga[nL06922556] 
Latest ICE Market report                 [O/L] 
Latest NYMEX market report               [O/N] 
Latest European cash oil products report [PRO/E] 
Latest European cash crude report        [CRU/E] 
................................................................ 
 LIVE PRICES & DATA 
 ICE Brent          <0#LCO:>  ICE Gas oil               <0#LGO:> 
 NYMEX Crude         <0#CL:>  NYMEX Heating oil          <0#HO:> 
 NYMEX gasoline      <0#RB:>  Brent,Dubai paper <0#BRT-><0#DUB-> 
 .............................................................. 
 TOP NEWS SUMMARIES ON OTHER SUBJECTS 
 Reuters Front Page     [TOP/NEWS]  Global Economy  [TOP/MACRO]| 
 Politics and General   [TOP/G] 
 U.S. Companies         [TOP/EQU]   European Companies [TOP/EQE] 
 Asian Companies        [TOP/EQA]   Forex              [TOP/FRX] 
 Sports                 [TOP/SPO] 
 .............................................................. 
    HOW TO FIND INFORMATION YOU NEED 
 | <REUTERS>  |  <NEWS>  |  <PHONE/HELP>  |  <EQUITY>  | 
 | <BONDS>    |  <MONEY> |  <COMMODITY>   |  <ENERGY>  | 
 .............................................................. 
 Page editor: 646-223-6200; New York Desk 
 ............................................................... 
Keywords: MARKETS ENERGY TOPNEWS 
    

UPDATE 3-Toronto stocks boosted by soaring crude price

Reuters: [2008-05-06 22:39:00]

(Updates closing numbers, adds details)

TORONTO, May 6 (Reuters) - Oil and gas companies led the way up for the Toronto Stock Exchange on Tuesday, helping the main index climb nearly 1 percent as crude oil prices notched another record high.

Suncor Energy <SU.TO> was among the biggest gainers, up C$4.62, or 4 percent, at C$121.12 as the price of oil flew up over $122 a barrel due to a weaker U.S. dollar and concerns over supply.

The Toronto market's heavily weighted energy sector jumped 3.3 percent. Canadian Natural Resources <CNQ.TO> was up C$4.05, or 4.6 percent, at C$92.00, and Canadian Oil Sands Trust <COS_u.TO> added C$3.68, or 8.3 percent, to C$48.18.

Crude settled up $1.87 at $121.84 a barrel, easing back from the record $122.73 it reached earlier in the day.

The S&P/TSX composite index <.GSPTSE> closed up 139.96 points, or 0.98 percent, at 14,414.30 with half of its 10 main sectors higher.

The materials sector, which houses resource shares, rallied 1.2 percent, while the base metals mining subindex gained 2.4 percent, pulled up by oil's momentum. Teck Cominco <TCKb.TO> rose C$1.48, or 3.2 percent, to C$48.18.

Methanex <MX.TO> shares jumped C$3.02, or 12.4 percent, to C$27.40 after the Methanol supplier upped its quarterly dividend by 11 percent and said it will buy back up to 10 percent of its common stock.

Fertilizer company Potash Corp of Saskatchewan <POT.TO> was up C$3.03, or 1.5 percent, at C$199.39, and competitor Agrium <AGU.TO> rose C$2.52, or 3 percent, to C$86.75.

Sun Life Financial <SLF.TO> dragged on the index after the insurer warned of a challenging year ahead as it reported credit market troubles and a strong Canadian dollar stung its operating earnings. Sun Life finished down C$1.76, or 3.6 percent, at C$47.44, while the financial sector overall gave up 0.5 percent. ($1=$1.00 Canadian) (Reporting by Leah Schnurr; Editing by Peter Galloway) ((leah.schnurr@thomsonreuters.com; +1 416 941 8056; Reuters Messaging: leah.schnurr.reuters.net@reuters.com))

Keywords: MARKETS CANADA STOCKS

. Keywords: MARKETS CANADA STOCKS

UPDATE 2-US sees oil use down on weak economy, high prices

Reuters: [2008-05-06 22:16:00]

(Adds record oil, gasoline prices, comments from EIA analyst on U.S. gasoline demand and global oil demand growth)

By Tom Doggett

WASHINGTON, May 6 (Reuters) - Higher U.S. gasoline prices and a slowing economy will cut into U.S. oil demand through the summer driving season much more than previously thought, the government's top energy forecasting agency said on Tuesday.

"Based on projections of weak economic growth and record high crude oil and product prices, (petroleum) consumption is projected to decline," the Energy Information Administration said in its latest monthly forecast.

Thanks to rising crude oil costs, U.S. drivers will pay an average $3.66 a gallon for gasoline this summer, up 12 cents from earlier estimates, the Energy Department's analytical arm said.

Pump prices are expected to peak at $3.73 a gallon in June, 11 cents more than previously projected, the agency said.

Gasoline prices will be higher due to expensive crude oil, which the EIA said it now expected will average $110 a barrel this year, about $9 more than the agency forecast last month.

The price of U.S. crude hit a record $122.73 a barrel on Tuesday at the New York Mercantile Exchange, as the national price for regular, self-service gasoline set a new of record $3.61 a gallon this week.

High fuel costs, along with a sputtering economy, will take an even bigger bite out of gasoline consumption, which was already forecast to decline from last summer's levels.

"The gasoline (situation) we're facing here in the U.S. is not something we've seen in 20 years, where we have these high prices on top of a weak economy," said EIA analyst Tancred Lidderdale. "Both are unquestionably taking their toll."

The EIA said it expected total petroleum demand, which includes gasoline, diesel fuel and jet fuel, in the current quarter to be 90,000 barrels a day less than last month's forecast and down 170,000 barrels a day compared to the second quarter of last year.

Petroleum consumption in the upcoming third quarter was revised down by 100,000 barrels a day, increasing just 10,000 barrels per day from the third quarter of 2007, the EIA said.

For all of 2008, demand will decline by 190,000 barrels a day, 90,000 barrels per day more than the agency said in last month's forecast.

By contrast, world oil consumption is forecast to grow by 1.2 million barrels per day this year, with most of the increase in demand led by China, Middle East oil producing countries, Russia, Brazil and India, the EIA said.

Lidderdale said oil demand is strong in China because of its growing economy while OPEC member countries in the Middle East are flush with dollars earned from oil exports, and therefore are on a spending and building spree, using more energy in the process.

Oil demand in the major industrialized countries is projected to change little this year, with higher oil use in Europe offsetting declining consumption in the United States, the agency said.

A combination of rising global oil demand, fairly normal crude inventories and low unused oil production capacity will provide "firm support" for petroleum prices, the EIA said. (Editing by Christian Wiessner)

((tom.doggett@thomsonreuters.com; +1-202-898-8320; Reuters Messaging: tom.doggett.reuters.com@reuters.net)) Keywords: USA OIL/DEMAND