NYMEX-Crude dips on economic growth concerns

Wed Jun 1, 2011 9:08am EDT

 * U.S. private payrolls less than estimates in May - ADP
 * Dollar weakness, Yemen unrest supportive to oil
 * Coming up: API oil data, 4:30 p.m. EDT Wednesday
 NEW YORK, June 1 (Reuters) - U.S. crude futures fell Wednesday in
choppy trading as concerns about slowing economic growth weighed on prices
even as the weaker dollar and supply disruptions from a shut crude pipeline
in the United States lent support.
 U.S. private employers added a scant 38,000 jobs in May, far below
economists' expectations and the lowest level since September 2010, a
report by ADP Employer Services, a payrolls processor, showed.
[ID:nEAPA10EH0]
 The ADP data reinforced worries about economic slowing ahead of the
closely watched U.S. May nonfarm payrolls report due on Friday.
 Concerns about slowed growth in the United States, China and the euro
zone's debt-laden periphery countered the lift for oil prices from a shut
U.S. crude pipeline, the dollar's weakness and violence-laced unrest in
Yemen.
 On the first day of the Atlantic hurricane season, the U.S. National
Hurricane Center said there is a 30 percent chance that a low pressure
system about 200 miles (322 kilometres) east of Jacksonville, Florida,
could strengthen into a tropical depression over the next 48 hours.
[ID:nL3E7H12BR]
 Investors receive the first snapshot of weekly U.S. oil inventories
late on Wednesday when industry group the American Petroleum Institute
releases its inventory report at 4:30 p.m. EDT (2030 GMT).
 FUNDAMENTALS
 * On the New York Mercantile Exchange, July crude CLN1 futures fell
58 cents, or 0.6 percent, to $102.12 a barrel by 8:58 a.m. EDT (1258 GMT),
trading from $101.90 to $103.31.
 * TransCanada Corp (TRP.TO) said Tuesday it will take a few more days
to reopen its 591,000 barrel per day Keystone crude oil pipeline after its
second spill in less than a month shut the line. [ID:nN31283793]
 * Chinese factories expanded in May at their lowest pace in at least
nine months, two surveys showed on Wednesday, reinforcing evidence that the
economy is slowing from government credit curbs and power shortages.
[ID:nL3E7H103M]
 * Fresh signs of decline among factories in the euro zone's debt-laden
periphery tugged on manufacturing growth across the region as a whole in
 May, the Markit Eurozone Manufacturing Purchasing Managers' Index showed.
[ID:nSLAVGE7UJ]
 * OPEC is unlikely to bow to western pressure to officially raise oil
output at its meeting next week, with members instead expected to act
independently, a Reuters poll showed. All 13 analysts and traders surveyed
predicted OPEC would roll over its current output agreement, untouched
since the group's record output cut in December 2008. [OPEC/O]
[ID:nLDE74U27M]
 * Iran said preserving OPEC's production ceiling was the only way to
control the oil market, the semi-official Mehr news agency quoted Iran's
OPEC governor Mohammad Ali Khatibi as saying. [ID:nMOS136339]
 * Explosions ripped through a northern area of Yemen's capital as a
powerful tribal group backing the ouster of entrenched President Ali
Abdullah Saleh battled his security forces. [ID:nLDE7500RQ]
 * Japan's weekly crude throughput fell to 2.73 million barrels per day
(bpd) last week amid slow domestic demand, with commercial crude
inventories nearing a 27-month high hit earlier this month, industry data
showed. [ID:nL3E7H10EZ]
 * U.S. crude oil inventories were expected to have fallen last week as
imports declined, while gasoline and distillate stocks edged up, a
preliminary Reuters poll of analysts showed on Tuesday. [ID:nN3167536]
 MARKETS
 * Gold eased as worries receded over Greece's debt crisis. [GOL/]
 * The euro rose and world stocks gained on expectations of progress on
austerity steps and financial aid for Greece. [MKTS/GLOB] [FRX/]
 * Copper slipped on signs of slowing factory activity in China and
Europe while attention turned to pending U.S. figures and a weak dollar
against the euro cushioned prices. [MET/L]
 UPCOMING DATA/EVENTS
 * U.S. Commerce Department releases April construction spending at 10
a.m. EDT (1400 GMT) on Wednesday. Economists in a Reuters survey forecast
an increase of 0.3 percent following March's rise of 1.4 percent.
 * U.S. Energy Information Administration natural gas storage data to be
released at 10:30 a.m. EDT (1430 GMT) on Thursday.
 * U.S. Energy Information Administration oil inventory data to be
released at 11 a.m. EDT (1500 GMT) on Thursday.
8:58     LAST     NET    PCT     LOW    HIGH  CURRENT  DAY AGO
              CHNG   CHNG                      VOL      VOL
CLc1   102.12   -0.58  -0.6%  101.90  103.31   59,793#N/A Tech
CLc2   102.60   -0.67  -0.7%  102.44  103.88   13,009#N/A Tech
LCOc1  116.03   -0.70  -0.6%  115.80  117.28   49,677  168,236
RBc1   3.0280 -0.0223  -0.7%  3.0196  3.0575    3,782#N/A Tech
RBc2   3.0001 -0.0185  -0.6%  2.9931  3.0289    2,538   48,701
HOc1   3.0374 -0.0158  -0.5%  3.0296  3.0646    4,484#N/A Tech
HOc2   3.0495 -0.0169  -0.6%  3.0440  3.0784    1,358#N/A Tech
 * NYMEX crude oil for July CLc1 fell 58 cents to $102.12 a barrel by
8:58 a.m. in volume of 59,793 lots.
 (Reporting by Robert Gibbons; Editing by John Picinich)


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