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COLUMN: Saudi Arabia is not "targeting" $100 oil: John Kemp
--John Kemp is a Reuters market analyst. The views expressed are his own--
LONDON, Jan 17 (Reuters) - Commentators identifying a new Saudi "price target" at $100 per barrel are wide of the mark.
Saudi Arabia's views on what constitutes a reasonable price for oil have less influence than analysts would like to believe.
Copper supply picture becomes ever murkier: Andy Home
--Andy Home is a Reuters columnist. The opinions expressed are his own--
LONDON, Jan 17 (Reuters) - Rio Tinto has once again reminded the copper market just why the red metal is still the only base metal trading significantly above the cost of production.
The company's production report, out this morning, was a sea of red. Fourth quarter attributable mined production slumped by 26 percent year-on-year. Full-year production of 519,700 tonnes was down by 158,400 tonnes, or 23 percent, on 2010. Shale gas adds to refiners' light-end woes -Campbell
-- Robert Campbell is a Reuters market analyst. The views expressed are his own. --
NEW YORK, Jan 17 (Reuters) - The U.S. natural gas industry, reborn through the shale gas revolution, has emerged as another source of pain for beleaguered oil refineries as natural gas liquids (NGLs) grab market share from petroleum in America.
As the market for liquid fuels in the United States has declined in recent years, petroleum has borne more of the brunt, losing share to biofuels and, increasingly, NGLs.
ENERGY:
Brent rises above $112 on weak dollar, demand growth hopes
SINGAPORE, Jan 18 (Reuters) - Brent crude rose above $112 as the dollar weakened and a slew of positive economic indicators, from China to the United States, eased demand concerns triggered by the debt crisis in Europe.
"Oil markets are still rallying on positive data, particularly from China, and expectations of more easing by the country to ensure steady growth," said Natalie Robertson, an analyst at ANZ. "Eyes are also on Europe as talks of a Greek default return. That's a factor weighing on markets.
Chevron says Nigeria rig fire still burning
Jan 17 (Reuters) - Chevron Corp reported early indications that equipment failure may be the cause of a fire still burning on a drilling rig off the coast of Nigeria more than a day after it broke out.
Two contractors missing after the fire aboard the K.S. Endeavor, operated by FODE Drilling Nigeria Ltd, had not yet been found, the company said in a statement on Tuesday.
Ohio gasoline spill spreads, line still shut-EPA
NEW YORK, Jan 17 (Reuters) - Sunoco Logistic's gasoline pipeline was still shut on Tuesday after a late-Thursday leak spilled some 117,000 gallons (532,000 litres) of gasoline in Wellington, Ohio, the state Environmental Protection Agency said.
The 8-inch (20-cm) pipeline, which runs from Toledo to Allegheny, Ohio, was shut two hours after an underground leak on the line was reported, an Ohio EPA spokeswoman said.
POLL-US crude stocks seen rising for fourth week
Jan 17 (Reuters) - U.S. commercial crude oil stockpiles likely rose last week for the fourth straight week on strong imports, a preliminary Reuters poll showed on Tuesday.
On average, domestic crude oil inventories were forecast up 2.8 million barrels, according to the poll of six analysts, who all predicted builds for the week to Jan. 13.
PDVSA says exports unaffected after upgrader accident
CARACAS, Jan 17 (Reuters) - Venezuela's state oil company PDVSA said on Tuesday that oil exports had not been affected by an accident in which a tanker hit a floating platform connected to one of its heavy crude upgraders.
A maritime source had said exports from the 130,000 barrel-per-day Petroanzoategui facility were halted after the ship's propeller apparently damaged a naphtha pipeline.
EU discussing plan to start Iran oil ban on July 1
BRUSSELS, Jan 17 (Reuters) - The European Union would ban the import of Iranian oil from July 1, giving member states nearly six months to wind up existing contracts, under a proposal by rotating EU presidency holder Denmark, EU diplomats said on Tuesday.
EU governments have already agreed in principle to impose a ban on Iranian crude as part of Western efforts to ratchet up pressure on Tehran over its nuclear programme. Details of how and when the ban will be implemented are still being ironed out and are being watched closely by edgy oil markets.
AGRICULTURE:
Corn rises for 2nd day, soy dips on LatAm rain f'cast
SINGAPORE, Jan 18 (Reuters) - U.S. corn rose for a second straight session, with support from improved risk sentiment and tight global supplies, while soy slid on forecasts of rain in parts of the drought-hit South American grain belt.
"The weather is looking a little bit wetter over the next five days, especially over some of the most stressed areas in Argentina and southern Brazil," said Victor Thianpiriya, an agricultural commodity strategist at ANZ.
India allows rice exports beyond two million tonnes-govt
NEW DELHI, Jan 17 (Reuters) - India has allowed overseas sale of common rice beyond two million tonnes, officials said on Tuesday, removing a previous cap announced by Food Minister K. V. Thomas in September 2011.
"Our stocks are comfortable on a bumper harvest. So, we can continue with exports of rice and wheat," Thomas said on Tuesday. Ministry officials confirmed this removed the limit of two million tonnes. Argentina's drought to keep punishing corn, soy
BUENOS AIRES, Jan 17 (Reuters) - Argentine corn and soy farms will suffer from hot weather and scant rains for the rest of this week, forecasters said on Tuesday, increasing worries that crop losses will eat into global supplies.
Argentina, which supplies about 20 percent of the world's corn exports and 12 percent of its soybeans, has been pounded for weeks by an unrelenting Southern Hemisphere summer sun. Heavy rains relieve Brazil's parched No. 2 soy state
SAO PAULO, Jan 17 (Reuters) - For the next 10 days heavy rains will lash Parana, Brazil's No. 2 soybean growing state, soaking crops badly in need of moisture after a long drought, forecasters predicted Tuesday, but no rain was headed for dry Rio Grande do Sul.
Parana, a southern state, bore the brunt of a prolonged dry spell in what is usually a wet summer season due to the La Nina weather anomaly, which the U.S. Climate Prediction Center has said could last until May.
China's soybean imports to rise again- Oil World
HAMBURG, Jan 17 (Reuters) - China, the world's largest soybean buyer, is likely to raise soybean imports up to July 2012 after recent falls but large port inventories could hinder purchasing in the immediate future, Hamburg-based oilseeds analysts Oil World said on Tuesday.
The United States, Brazil and Argentina together exported 19.3 million tonnes of soybeans to China in Sept./Dec. 2011, up 1.1 million tonnes or 6 percent on the year, Oil World estimates.
BASE METALS:
Copper steady before debt sales by euro zone nations
KUALA LUMPUR, Jan 18 (Reuters) - Copper was steady , after surging to its highest in more than two months in the previous session, as euro zone funding worries eroded investor confidence following upbeat economic data in China, Germany and the United States. Three-month copper on the London Metal Exchange was at $8,227.50 a tonne, up 0.34 percent, by 0105 GMT. Prices have climbed 2.5 percent this week.
BHP sees record iron ore output, no sign of China doubts
SYDNEY, Jan 18 (Reuters) - BHP Billiton , the world's biggest mining company, forecast record iron ore production this year after quarterly output jumped by a fifth, shrugging off predictions that growth in top buyer China will slow this year.
China is the largest market for the vast volumes of the steel-making commodity as well as for copper, coal and other industrial minerals that BHP Billiton and rival Rio Tinto mine worldwide.
Newmont sees lower copper output, higher costs in 2012
Jan 17 (Reuters) - Newmont Mining Corp said mining costs for gold and copper are expected to rise this year, mainly because of higher labor and power prices in Australia, and it forecast a drop in copper production because it was currently mining lower-grade ores in Indonesia.
The outlook sent the Denver-based company's shares down over 3.5 percent to $61.14 in morning trading on the New York Stock Exchange.
China sets 5-year demand, output plans on base metals - report
SHANGHAI, Jan 17 (Reuters) - China will step up efforts to reduce overcapacity and energy consumption in its nonferrous metals industry and is aiming to keep its annual output of 10 major metals at 46 million tonnes by 2015, from 31.21 million tonnes in 2010, an industry website reported on Tuesday.
Based on the latest five-year development plan between 2011 and 2015 for the industry, China has forecast its total copper production to grow on average 7.3 percent per year to reach 6.5 million tonnes by 2015, compared with an actual output of 5.18 million tonnes in 2011, according to government plans posted on a website owned by the China Non-ferrous Metals Industry Association.
PRECIOUS METALS:
Gold off one-month high; euro zone eyed
SINGAPORE, Jan 18 (Reuters) - Gold traded steady , off the one-month high hit in the previous session on improved global economic outlook, while investors shifted focus once again to the troubles of euro zone.
"There's considerable anxiety over Greece," said Nick Trevethan, Senior Commodity Strategist at ANZ in Singapore. "Together with the looming Chinese holiday, you've probably got a recipe for risk reduction."
STEEL NEWS:
Stainless steel production up 3.1 pct in Q3 2011-ISSF
LONDON, Jan 17 (Reuters) - Global crude stainless steel production grew 3.1 percent in the third quarter of 2011 compared with the same period one year earlier, recovering after a weak second quarter, a report from the stainless steel industry body showed on Tuesday.
This suggests 2011 production is likely to hit a new record high although the pace of growth has slowed significantly from the previous year.
GLOBAL MARKETS: GLOBAL MARKETS-Shares steady, eyes on Portugal debt sale, Greece
TOKYO, Jan 18 (Reuters) - Asian shares and the euro steadied after sentiment improved on soothing economic data the day before, as focus returns to Europe with Portugal testing investor confidence in a debt sale and Greece resuming talks on its debt restructuring. "After yesterday's rally, investors now shift their focus to talks on Greece, with a lot being unresolved," said Frances Cheung, senior strategist for Asia ex-Japan at Credit Agricole CIB in Hong Kong.
CHART OF THE DAY: SHANGHAI COPPER - 24 HRS TECHNICAL OUTLOOK 
BEYOND THE HEADLINES:
Beyond oil a gloomier 2012 economy seen in coal, freight
LONDON, Jan 17 (Reuters) - Oil prices may still be riding high but for a more accurate picture of the state of the global economy in 2012, look at recent developments in the non-oil energy, freight and metals sectors.
Coal and power benchmark futures prices have fallen to their lowest levels since late 2010, while the Baltic Dry Freight Index, a barometer of demand for shipping, is languishing at a three-year low.
Prokhorov sees nod for London gold listing
MOSCOW, Jan 17 (Reuters) - Billionaire Mikhail Prokhorov, challenging Vladimir Putin for the Russian presidency, sees no risk to his vast business interests from his foray into politics and expects to list his gold business in London soon.
Prokhorov, ranked Russia's third-richest man by Forbes magazine with a fortune of $18 billion, owns aluminium, gold and banking assets, the New Jersey Nets basketball team, and is developing a hybrid passenger car.
Asian hunger for U.S. "noodle" wheat may bolster prices
SINGAPORE, Jan 17 (Reuters) - For the second straight year, Asia must rely on the United States and Canada for most of its top-quality wheat, as rains have cut the protein content in grain from traditional supplier Australia.
Asian nations are among the world's biggest buyers of the superior quality, protein-rich wheat that is used to make noodles, a staple food across the region. This hunger could support prices on the Minneapolis Grain Exchange , and widen spreads with the lower-grade soft wheat traded in Chicago.
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