Trade Crude Oil

NYC, NY, United States (AHN) – As widely expected, the Federal Reserve took no action Tuesday, leaving interest rates at their historically low levels, and made no announcement to change its monetary policy through at least 2014.

Following the 2:15 p.m. announcement, the Dow Jones Industrial Average was up 114 points, the Standard & Poor’s 500 Index was higher by 11 points and the NASDAQ was better by 31 points.

Recent economic data has indicated that the economy is slowly picking up steam. Unemployment is falling and consumer sentiment is rising. While optimism is growing, many, including the Fed, remain cautious.

The Fed pointed out that the recent increases in oil will push up inflation temporarily, and looks for the unemployment rate to continue to fall. It also noted that the housing market remains depressed, but sees improvement in the sector in the months ahead.

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Washington, D.C., United States (AHN) – Congress heard testimony this week providing more evidence Venezuela is fast becoming a partner of some of the Middle East’s most troublesome countries for the United States.

Venezuelan President Hugo Chavez has decided to sell oil to Syria and is accepting help from Iran to build military spy drones.

U.S. Southern Command Commander Gen. Douglas Fraser warned Congress this week that Chavez is creating big security uncertainties for the United States.

The Southern Command watches for threats to security along the U.S. southern border, including the ones that begin in Latin America.

Fraser said during a congressional hearing that Chavez’s precarious health after a cancer diagnosis, along with “continued economic instability and escalating levels of violence are placing increasing demands on the Venezuelan government.”

Chavez is recovering from cancer surgery this week at a hospital in Havana, Cuba.

Even more menacing is Iran’s attempt to find allies among socialist South American nations, with Venezuela top among them, Fraser said.

Iran has succeeded “in establishing modest economic, cultural, and security ties” with most of the countries, the general said.

The ties include building airborne surveillance drones for Venezuela, Fraser said.

The Iranians also increased the number of their Latin American embassies from five to 10 and built “cultural centers” in some of the countries.

“They are working to build diplomatic relations [and] international support to counter the sanctions” imposed by the United States, European Union and other countries, Fraser told journalists at a later press conference.

He was referring to sanctions the countries are imposing to force Iran to give up its nuclear development program. So far, the Iranians refuse.

State Department officials have expressed concern that Venezuela is undermining the effectiveness of sanctions imposed against Iran.

Not only can the Iranians use Venezuela for ongoing trade, they also might be able to launder oil money through the South American country.

As a result, economic sanctions from other countries could be rendered less effective, according to officials.

In addition, State Department officials have been warning that Iranian allies from the Islamic extremist groups Hamas and Hezbollah have been making inroads in South America.

Their activities have included raising money through smuggling of drugs and weapons.

In another affront to U.S. foreign policy, Venezuelan oil officials acknowledged in recent days that they are sending diesel fuel to Syria as the regime of Syrian President Bashar al-Assad wages a bloody crackdown on dissidents.

Chavez said he would continue the shipments to Syria even while the United States, Western European and some Arab countries were calling on Assad to resign as his troops bombarded dissident strongholds. Thousands of Syrians have died in the crackdown since last spring.

The diesel shipments are authorized under a 2010 trade agreement between Venezuela and Syria, according to Adel El Zabayar, a member of Venezuela’s Congress.

One of the deliveries of low-sulfur diesel was made by state-run oil company Petroleos de Venezuela in February.

Another shipment is nearly ready to go, according to Venezuelan officials.

Fraser warned that “geopolitical turmoil” could begin this year in Venezuela, Haiti, Cuba or Bolivia.

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New York, NY, United States (AHN) – United States stocks slipped on the open Monday as investors prepare for a busy week ahead.

Just before 10 a.m. on Wall Street, the Dow Jones Industrial Average was down 35 points, the Standard and Poor’s 500 Index dropped 5 points and the NASDAQ fell 8 points.

Oil, which ran up to $110 a barrel last week on rumors of an explosion in Iran, was last trading up 32 cents to $107.07 a barrel.

Gold was lower by $4.40 Monday at $1,705.40 an ounce after falling some $66 an ounce last week on a stronger dollar, and following Fed chairman Ben Bernanke’s remarks that failed to hint at a round of QE3.

Last week, the Dow closed down 5.38 points, or 0.04 percent on the week, ending at 12,977.57. This was its first weekly loss in three weeks, after flirting with and finally finishing above 13,000 Tuesday for the first time since May 2008.

The NASDAQ gained 12.44 points, or 0.42 percent, to 2,976.19, marking its third straight week of gains and eighth straight winning week in the past nine. The S&P 500 closed the prior week up 3.89, or 0.28 percent, at 1,369.63.

Reports that will be closely watched during the week start with Monday’s release of January factory orders.

On Tuesday, all eyes will be on primaries as 11 states vote for presidential hopefuls. Super Tuesday on March 6 is shaping up to be the most dramatic event in a GOP primary season. A total of 437 delegates will be up for grabs in primaries in those states.

On Wednesday, the highly anticipated debut of Apple’s iPad 3 is expected, along with fourth quarter productivity and January consumer credit.

On Thursday, the European Central Bank and the Bank of England are expected to hold rates steady.

Friday closes the week with a slew of reports. Look for February nonfarm, payrolls, February unemployment rate, January international trade and January wholesale inventories.

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New York, NY, United States (AHN) – U.S. stocks opened modestly higher Friday as traders bet the end of the work week will see the Dow close over 13,000.

Upbeat economic data Thursday helped the Standard & Poors 500 Index end near a 10-month high, while the Dow Jones Industrial Average ended the day up 46.02 to 12,984.69, a new 52-week high. It was the highest close since May 19, 2008, and just a few points below the psychologically important 13,000 mark.

Just after the opening bell on Friday, the Dow gained 4 points, the S&P was up 2 points and the NASDAQ rose 3 points.

Economic focus will remain key on Friday as reports on consumer sentiment and new homes sales are due mid-morning.

Market participants were also keeping a close eye on oil, which has risen sharply over the past week on worries of export cutbacks and embargoes from Iran.

Crude oil for April delivery rose 45 cents, or 0.4 percent, to $108.26 a barrel. Oil gushed higher by $1.55 a barrel on Thursday amid concerns that Iran could stop sending some oil to European nations.

Gold, which has had a stellar run over the past several trading sessions, shed $5.80 to $1,780.50 a troy ounce, and silver, which has been on a tear, was last quoted up 7 cents to $35.43.

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New York, NY, United States (AHN) – U.S. stocks opened mixed to higher Thursday fueled by lower than expected jobless claims and impressive earnings from General Motors.

Just after the open on Wall Street, the Dow Jones Industrial Average was up 15 points. The Standard & Poor’s 500 Index and the NASDAQ were both nearly unchanged.

Investors were buoyed by the a report from the Labor Department that showed initial jobless claims fell to a near four-year low.

Also giving stocks momentum was an earnings report from General Motors. GM reported the largest annual profit in its history on Thursday, even as losses in Europe were a drag on fourth quarter earnings.

The auto maker said it earned a quarterly profit of $472 million, or 28 cents a share. It was the eight consecutive quarterly profit for the car maker, which strategically cleared up much of its debt in bankruptcy a few years ago. For all of 2011, GM earned $7.6 billion, most of it from North America.

In early morning trading, shares of GM climbed almost 5 percent, and were last changing hands at $26.15 per share.

Holding stocks back were continued worries over Greece’s ability to secure a second bailout. Investor sentiment was further dampened after rating agency Moody’s put 17 global banks and 114 European financial institutions on review for possible downgrades.

Gold fell as Greece’s woes hurt the euro. The precious metal tumbled $16.40 to $1,711.80 a troy ounce. Oil was flat at $101.67 a barrel.

Ringing the opening bell on the NYSE was Westminster’s Best in Show, Malachy, a petite, composed and well manicured Pekinese.

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New York, NY, United States (AHN) – Imports to the U.S. were greater than exports in December, resulting in a widening trade deficit

The Commerce Department released figures Friday that showed the U.S. trade deficit widened to a six-month high in December.

The gap increased 3.7 percent to $48.8 billion from $47.1 billion in November. Purchases of goods and services produced overseas were the strongest in more than three years on record demand for capital equipment such as machinery and semiconductors.

Experts noted that imports may keep rising as an improving job market underpins consumer spending and businesses rebuild inventories and replace outdated equipment.

At the same time, demand from emerging markets is boosting sales at companies like General Electric and Caterpillar Inc., providing somewhat of a buffer from the fallout resulting from the European sovereign debt crisis and helping to sustain exports.

The median forecast was for the deficit to rise to $48.5 billion from a previously estimated $47.8 million in November.

Imports advanced 1.3 percent to $227.6 billion, the most since July 2008. The strengthening economy propelled the gains in consumer household items, autos and parts, and crude oil from overseas.

The trade gap with China narrowed to $23.1 billion from $26.9 billion, as imports from the Asian nation dropped.

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New York, NY, United States (AHN) – Stocks were little changed on the open Thursday as investors keep a close eye on developments in Greece.

Just after the opening bell on Wall Street, the Dow Jones Industrial Average was up 25 points, while the Standard & Poor’s 500 Index and the NASDAQ were virtually flat.

United States stocks were poised to open higher as news surfaced that political leaders had reached a deal on austerity measures and reforms that are needed to prevent Greece from a default. An official announcement is forthcoming.

Investors both in the U.S. and abroad will likely keep eyes focused on Athens. European stocks were modestly higher in afternoon trading and Asian markets were mixed.

Also giving global markets some steam was news that the European Central Bank and the Bank of England both left their benchmark interest rates unchanged. In London, the BoE also announced a $79 billion bond purchase.

Keeping a reign on gains was a report that showed China’s inflation rate rose in January, dashing hopes that the country’s central bank will soon take more action to support economic growth there.

In U.S. corporate news, shares of the nation’s biggest banks were moving after a $25 billion accord was reached to help homeowners struggling with loans bigger than the values of their homes.

Yahoo shares were climbing following news that Chinese company Alibaba is looking to buy back the 40 percent stake Yahoo owns.

Shares of Oracle inched up after the company announced it is buying the cloud-based human resource management software company Taleo in a $1.9 billion deal.

Despite beating expectations, raising its quarterly dividend 30 percent, and guiding higher, shares of Cisco slipped lower.

In commodities, oil rose $1.13 and was trading just under $100 a barrel. Gold, meanwhile, advanced $20 to $1,751.80 a troy ounce.

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New York, NY, United States (AHN) – Wall Street opened lower Friday after a report showed that the U.S. economy expanded less than forecast..

Just after the opening bell, the Dow Jones Industrial Average was lower by 33 points, the Standard and Poor’s 500 Index was flat and the NASDAQ was up by about 6 points.

Weighing on stocks was a report that showed the U.S. economy expanded at 2.8 percent in the fourth quarter, less than the 3 percent that had been projected.

In Europe the Stoxx Europe 600 Index slipped 0.7 percent as investors await word on developments on the region’s sovereign debt crisis. European Union Economic and Monetary Affairs Commissioner Olli Rehn said authorities are “very close” to reaching an agreement on private-sector involvement in a Greek debt swap.

Despite those words of optimism, the dismal growth of GDP in the U.S. was keeping investors cautious. The health and growth of the U.S. economy is a very important and leading indicator of economic growth worldwide. As analysts like to say, “when the U.S. sneezes, the world catches a cold.”

In corporate news, Ford fell after reporting numbers that missed estimates. Starbucks shares slipped despite reporting better than expected numbers, and Juniper Networks plunged after the second biggest maker of computer networking equipment forecast sales and profits that missed estimates.

In commodities, oil was unchanged at $$99.60 a barrel, gold rose $4.70 to $1,725 a troy ounce and silver was up a few pennies at $33.63.

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Washington, DC, United States (AHN) – The United States on Tuesday reiterated hopes to impose sanctions on Iranian oil exports without impacting international markets and U.S. allies in the process, according to the White House.

Addressing journalists, Jay Carney, the White House spokesman said, “We have effectively isolated Iran to a degree that has never before been the case. And the impact of the sanctions and the efforts that we’ve implemented is profound as every report out there has recognized.”

Asked to comment on reports that India would be paying in Indian currency, Carney said, “We are working with our partners and allies around the country to enforce the sanctions and to take a multilateral approach, an approach that we hope will maximize the impact of the sanctions without creating any unintended consequences, any negative impacts on the oil markets or on our allies.”

“We are engaged in that effort right now,” said Carney, adding, “We will continue to work with our allies to do that, to get Iran to behave, to live up to its international obligations.”

The need to find a financial mechanism for payment exchange between Iran and India arose as the present intermediary link, Turkey, announced it could no longer play that role due to tougher new U.S. sanctions.

Before the arrangement with Turkey, India was using an Iranian bank based in Germany, but under U.S. pressure Germany stopped payment transactions for Iranian oil for India.

According to media reports in India, a top level Indian ministerial team is heading to Tehran to finalize a financial mechanism under which Iranian oil companies would open an Indian rupee account with Indian banks.

Indian payments once deposited in those accounts would be available to Iranians to purchase items such as commodities and railway imports.

European Union countries recently agreed in principle to ban Iranian crude imports, but details of implementing the ban are yet to be worked out. Meanwhile, the U.S. continued its efforts to advise major oil consuming countries like China, India and Russia to significantly curb their imports of Iranian crude.

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Washington, DC, United States (AHN) – The United States on Tuesday reiterated hopes to impose sanctions on Iranian oil exports without impacting international markets and U.S. allies in the process, according to the White House.

Addressing journalists, Jay Carney, the White House spokesman said, “We have effectively isolated Iran to a degree that has never before been the case. And the impact of the sanctions and the efforts that we’ve implemented is profound as every report out there has recognized.”

Asked to comment on reports that India would be paying in Indian currency, Carney said, “We are working with our partners and allies around the country to enforce the sanctions and to take a multilateral approach, an approach that we hope will maximize the impact of the sanctions without creating any unintended consequences, any negative impacts on the oil markets or on our allies.”

“We are engaged in that effort right now,” said Carney, adding, “We will continue to work with our allies to do that, to get Iran to behave, to live up to its international obligations.”

The need to find a financial mechanism for payment exchange between Iran and India arose as the present intermediary link, Turkey, announced it could no longer play that role due to tougher new U.S. sanctions.

Before the arrangement with Turkey, India was using an Iranian bank based in Germany, but under U.S. pressure Germany stopped payment transactions for Iranian oil for India.

According to media reports in India, a top level Indian ministerial team is heading to Tehran to finalize a financial mechanism under which Iranian oil companies would open an Indian rupee account with Indian banks.

Indian payments once deposited in those accounts would be available to Iranians to purchase items such as commodities and railway imports.

European Union countries recently agreed in principle to ban Iranian crude imports, but details of implementing the ban are yet to be worked out. Meanwhile, the U.S. continued its efforts to advise major oil consuming countries like China, India and Russia to significantly curb their imports of Iranian crude.

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