TOKYO, Jan 22: US crude futures fell more than 1 percent on Thursday, giving up almost half the gains from the previous session, after OPEC defended its decision not to intervene to stop a collapse in oil prices since the middle of last year.
FUNDAMENTALS
* NYMEX crude for March delivery was down 50 cents, or 1.05 percent, at $47.28 a barrel by 0003 GMT. * NYMEX rose more than 2 percent on Wednesday on optimism for a recovery as energy companies cut production investment to alleviate a supply glut that has wiped out more than half crude’s value since June.
* London Brent crude for March delivery was untraded, after rising $1.04 to close at $49.03 on Wednesday. * OPEC defended on Wednesday its decision not to intervene to halt the oil price plunge, shrugging off warnings by top energy firms that the cartel’s policy could lead to a huge supply shortage as investments dry up. * French oil and gas company Total will cut spending on ageing North Sea fields and on U.S. shale production after the recent plunge in oil prices, its chief executive said on Wednesday.
* Losses from lower oil exports should sap up to $300 billion from economies in the Middle East and Central Asia this year, as countries in the region adjust to falling crude prices, the International Monetary Fund said on Wednesday.
MARKETS NEWS
* U.S. stocks edged up in a choppy Wednesday session as traders digested reports that new stimulus would be announced by the European Central Bank at its Thursday meeting.
* Japan’s Nikkei share average rose on Thursday, adding 0.4 percent to trade at 17,344.96.
* The Canadian dollar languished at its lowest in nearly six years early on Thursday, having suffered a massive drop after the Bank of Canada stunned markets by cutting interest rates.
DATA/EVENTS
* The following data is expected on Thursday: (Time in GMT)
0900 Italy Industrial orders Nov
1330 European Central Bank announces policy decision 1330 U.S. Weekly jobless claims
1400 U.S. Monthly home price index Nov 1445 U.S. Markit manufacturing PMI flash Jan 1500 U.S. Consumer confidence Jan
(AGENCIES)
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