U.S. crude rose as much as $2.37 to hit $71.82 a barrel, the highest since July 1. By 1351 GMT, it was trading $1.73 higher at $71.18.

Brent crude gained $1.46 to $73.16.

“We are getting close to the resistance area for crude oil and we need the continued support of equities,” said Olivier Jakob, an analyst at Petromatrix. “As long as this continues, the dips are going to be bought.”

European shares hit a new high for 2009, led by banks. U.S. stocks opened higher.

The latest gain in oil prices brings oil within sight of the 2009 high of $73.38 set in June, where Jakob and other analysts who use past price moves to predict direction see key resistance that prices could struggle to rally beyond.

On Friday, crude rallied almost 4 percent as data showed the U.S. economy shrank at a smaller-than-expected 1 percent annualised pace in the second quarter, raising hopes the recession was easing.

The market climbed about 2 percent last week — the third straight week of gains — which helped to reverse steep losses in the middle of the month and brought July’s monthly decline to a marginal 0.6 percent.

“The U.S. growth number has confirmed that the worst is behind us and the focus now is to find out how quick the recovery will be,” said Ben Westmore, a commodities analyst at the National Bank of Australia.

China’s crude stockpiles in June, including both state strategic and commercial reserves, declined 2.7 percent from a month earlier, the first fall in four months, China OGP, a newsletter run by Xinhua, reported on Monday.

Analysts said a weak dollar, which slid to its lowest point this year on Monday against a basket of currencies amid increased risk appetite, would offer support to oil.

Supply curbs by the Organization of the Petroleum Exporting Countries since last year in response to falling demand have helped crude rally from below $33 in December.

However, output from 11 members from the OPEC rose slightly in July, lowering its compliance rate to its agreed supply curb to 71 percent from 72 percent in June, a Reuters survey showed.

LONDON, Aug 3 (Reuters)

The U.S. jobless rate reached a 26-year high and Euro zone unemployment is at the highest in a decade, reports showed last week. Oil fell even after militants attacked oil installations in major African exporter Nigeria.

“There’s a general retreat caused by lack of risk appetite,” said Mike Wittner, oil analyst at Societe Generale. “For a couple of months, we perhaps got a bit too optimistic and several markets got ahead of themselves.”

U.S. crude fell $2.24 from Thursday’s close to $64.49 a barrel by 1412 GMT. It traded as low as $63.40, the lowest intraday price since May 28. Brent crude fell $1.30 from Friday’s close to $64.31.

NYMEX floor trading was closed on Friday because of the U.S. Independence Day holiday and, although oil traded electronically, the exchange did not issue an official closing price.

Oil pared earlier losses after a report showed the U.S. service sector contracted in June, but at a slower pace than in May. The Institute for Supply Management’s services index rose to 47.0 last month from 44.0 in May.

European stocks <.EU> weakened on Monday following on from losses in Asia. U.S. stocks edged lower. The dollar <.DXY> rose against a basket of other major currencies.

“It’s a definite break to the downside, probably sparked by the poor economic data and stalling stock markets,” said Christopher Bellew, a broker at Bache Commodities in London.

“It’s completely broken through its support at around $68.00-$68.50 and technically and probably fundamentally, heading lower now,” he added, referring to Brent crude.

Investors will focus later this week on a meeting of the Group of Eight industrial nations on July 8-10.

The G8 should not presume a global economic recovery is near, World Bank President Robert Zoellick said in a letter to G8 host Italian Prime Minister Silvio Berlusconi obtained by Reuters on Monday.

In a research note, Societe Generale said the correction in oil prices, which surged 42 percent in the last quarter, was long anticipated. It predicted oil prices would continue falling and average around $60 a barrel in July.

Even after its latest losses, oil has still almost doubled from a low of $32.40 reached in December. Attacks on oil installations in Nigeria, traditionally Africa’s top oil producer, could limit losses.

Chevron , Royal Dutch Shell and Italian energy firm Agip have cut oil output by around 273,000 barrels per day in the last six weeks following the latest campaign of militant violence.

LONDON, July 6 (Reuters)

In the latest sign the economy of the world’s top consumer was still struggling, data on Thursday showed U.S. employers cut 467,000 jobs in June and the jobless rate rose to a 26-year high. Euro zone unemployment climbed to a 10-year high.

U.S. light crude hit $54.66 a barrel, its highest price since Nov. 28, before easing to $53.60 by 1708 GMT. But it was still up by 87 cents, recovering from a decline of more than a dollar on Wednesday.

London Brent crude rose $1.18 to $52.93.

Oil derived some support from a rally in Asian shares, which rose to their highest in 11 weeks following upbeat U.S. economic data on Wednesday, although European shares fared lower.

Oil prices responded little to a set of gloomy U.S. government data, which showed the U.S GDP fell 6.3 percent, the steepest decline since 1983.

Recovering equities this week as well as a generally weaker U.S. dollar have helped to underpin oil but the rise could be short-lived because of weak fundamentals, analysts said.

“Oil stocks are still very high and if you look at the investment flows, volumes have been very light,” said Olivier Jakob of Petromatrix.

A weaker dollar makes commodities priced in the U.S. unit relatively cheap for holders of other currencies, which can attract investors.

Oil has fallen from highs above $150 last July as the global economic crisis dented energy demand but it has recovered from lows below $35 touched in December partly as a result of export curbs by the Organization of the Petroleum Exporting Countries.

There are signs prices are at least stabilising. A Reuters poll on Wednesday showed a consensus view of analysts that oil prices would average around $50 this year.

“We are seeing some optimism, we are seeing some return of risk appetite, both of which we have not seen for a while…” Mike Wittner, Societe Generale’s global head of oil Research, said. But he too pointed to the high inventories.

On Wednesday, U.S. government data showed an increase in crude oil stocks to their highest levels since 1993. The data also showed falling demand.

Source: March 26 (Reuters)

Alternative energy is hot stuff. Sure energy demand is waning during the economic downturn and crude prices have dropped to a third of their all-time highs, but we all know the bears will eventually fill their stomachs and move on.

At least that is what the folks investing in solar, wind, biofuels and geothermal technology are betting on.

There is a report out this week stirring their ambition. According to research released yesterday by Clean Edge, worldwide alternative energy revenues soared by 53% in 2008 to $116 billion. Not bad, but it pales in comparison to the $477 billion in revenues Exxon Mobil (NYSE:XOM) recorded during the same period.

Fortunately, the industry is expected to grow, but we will have to wait at least a year or so. The current recession has created a nasty speed bump for the “green” economy. Even with Obama’s massive spending efforts, it will be at least a decade until alternative-energy revenues double. Clean Edge estimates the industry’s revenues at about $325 billion by 2018.

Lots of risk, little reward

That is steady growth, but does not come anywhere close to matching the ambition held by so many investors that are planning to get rich overnight thanks to “green” growth.

Looking forward, we cannot be fooled into hoping for too much change. Five years ago investors (or was it politicians?) were claiming clean coal technology was going to power the nation in the near future. We all see how that industry is still lacking its formal introduction to the world.

Read the full article here: In-and-out strategies for alternative investment profits

Jason Simpkins of Money Morning says that “…some analysts estimate that India’s nuclear energy sector could be worth as much as $200 billion.”

Here he shows us what majors are lined up for the deal:

India launched its first nuclear test in 1974, but the country refused to sign the global Treaty on the Non-Proliferation of Nuclear Weapons (NPT). As a result, the 45-member Nuclear Suppliers Group (NSG) banned India from global nuclear trade.

That ban was lifted last September when Washington pushed through a “waiver” that freed India from 34 years of sanctions.

Critics of the deal worry that by lifting the trade restrictions on India, the world’s “responsible” nuclear powers are undermining the NPT and could potentially reignite an arms race with India’s rival Pakistan. But the deal’s supporters see the decision as an act of good faith towards India that will enhance global ties and help that nation meet its growing energy demand, perhaps through a more eco-friendly method than burning coal and oil.

As it now stands, about 69% of India’s electricity is generated from coal, according to the World Coal Institute. Demand is projected to soar from 391 Megatonnes (a metric ton, also referred to as “Mt”) in 2002 to 758 Mt in 2030 – a 94% jump.

In fact, only one country is expected to have greater demand for coal during that period – China.

Up to now, one problem has been that India only has 17 nuclear reactors, which produce just 2.5% of the country’s electricity.

“India does not have much of energy option,” V. Raghuraman, an energy advisor to the Confederation of Indian Industry, told the Voice of America. “We are short of hydrocarbons. We are short of coal. We are short of everything. We need an energy mix. We need to make the ground today to prepare for the future.”

India would like to boost its nuclear energy capacity from by 60,000 megawatts (Mw) over the next 15 years, according to Raghuraman. That would more than double the contribution that nuclear power is making to India’s electricity grid. For that to happen, however, India would need to add 40 new nuclear reactors at a cost of roughly $80 billion.

This nuclear “explosion” will generate billions of dollars of new business for the world’s leading energy companies, as India scrambles to secure fuel, acquire equipment, upgrade its technology, and develop and train workers to build, operate and maintain the power plants.

“Today, since there has been a technology denial and fuel denial for the last more than three decades, India has developed an in-house program and there have been some capabilities, but surely these are not world class or also of the capacities which are required for future development,” said Raghuraman. “Which would mean we really need to access technology. We would like to look at accessing technology from all around, because the kind of capacities which we need are phenomenal.”

Global Powers Swarm India’s $200 Billion “Mega-Opportunity”

Last month, an 18-member delegation from the United Kingdom, headed by Lord Peter Mandelson, the British secretary of state for business, enterprise and regulatory reform, arrived in Delhi with executives of companies such as Urenco Enrichment Co., Thompson Valves Ltd., and the Weir Power unit of The Weir Group PLC.

That delegation was accompanied by an additional group from Canada, whose members included representatives from Atomic Energy of Canada Ltd., Cameco Corp. (CCJ), and SNC-Lavalin. Canadian Minister of International Trade Stockwell Day led the delegation.

“Canadian companies are well positioned to capitalize on opportunities and to work with their Indian counterparts to meet the needs of India’s civilian nuclear market,” Minister Day told Knowledge@Wharton, the University of Pennsylvania’s business journal. “India is very enthusiastic about using Canadian technology and resources to help build [its] nuclear energy capacity.”

India also entertained similar delegations from France, Japan, Russia, and even Kazakhstan.

All of these groups were eclipsed by the U.S. delegation, represented by 60 senior executives of 30 nuclear power companies.  The U.S. group spoke with a host of Indian companies, including Tata Power Co. Ltd., Larsen & Toubro Ltd. (PINK: LTOUF) and Punj Lloyd Ltd.

The representatives were originally scheduled to arrive in December, but their visit was delayed by the terrorist attacks in Mumbai.

“The robust presence here of the U.S. commercial nuclear industry, so soon after the unfortunate events in Mumbai, speaks of the commitment of our companies to partner with India in the coming nuclear renaissance,” Ted Jones, director for policy advocacy at the U.S.-India Business Council (USIBC) told Wharton.

Exactly how much money is at stake for these delegations is unclear, but some analysts estimate that India’s nuclear energy sector could be worth as much as $200 billion.

“It is premature to provide specific numbers as details of the work involved cannot be discussed with any of the foreign companies pending clearances from their respective governments,” said Larsen & Toubro Senior Executive Vice President M.V. Kotwal.  “An approximate assessment of the business potential available for Indian industry could be on the order of $1.5 billion to $2 billion a year after a couple of years.”

Even more optimistic is an L&T white paper, which takes a broader view.

“The Indo-U.S. nuclear deal will open two-way cooperation between India and the U.S. on key technologies in the areas of defense, nuclear energy, aerospace and aviation,” says the paper. “This is a business mega-opportunity of more than $200 billion.”

Who’s Profiting From India’s Nuclear Buildup?

Some energy companies are already landing big deals in India.

One of the first was Westinghouse Electric Co. LLC, which announced joint venture with Larsen & Toubro to build nuclear reactors at the conclusion of the United States’ five-day trade mission to Mumbai in January.

France’s Areva SA followed, agreeing to supply the Nuclear Power Corporation of India Ltd. with six reactors just two days after India said it would allow the International Atomic Energy Agency (IAEA) to inspect 14 of its reactors. NPCIL Chairman and Managing Director S.K. Jain said the deal was worth $12.3 billion.

Still more nuclear power contracts are expected in coming months.

Canada’s Cameco Corp. might be one of the companies to ink a deal. The Saskatoon-based Cameco is the world’s largest uranium miner, making it vital to the global supply.

India will require about 1,600 metric tons of uranium per year to achieve the energy output it desires

The cash-rich Cameco reported an 86% increase in revenue for the fourth quarter of 2008, and Chief Executive Officer Gerald W. Grandey remains optimistic that his company will continue to weather the global financial crisis.

“Our customers are well-established electrical utilities, many government-owned or with regulated rate structures. In tough times, they run their low-cost nuclear plants at full capacity, assuring demand for our products,” Grandey said in a conference call last Tuesday. “Our strategy of seeking price protection in our contracting has reduced the sensitivity of our revenue to softening spot prices and we are seeing the benefit now,”

Uranium use will increase 3% annually over the next 10 years, as new reactors are built around the world, Grandey said. A short-term loan taken last June to help finance investments in new assets has been extended on good terms, and Cameco has also received new credit of $100 million.

Among those scheduled to meet with Indian interests, was Australian Prime Minister Kevin Rudd. However, Rudd decided to postpone his visit when Indian Prime Minister Manmohan Singh became ill and underwent heart surgery.

When the two leaders do eventually catch up with one another, they’ll have plenty to talk about with respect to India’s nuclear buildup. Australia is the world’s second-largest uranium producer, trailing only Canada.  Australia exports about 10,000 metric tons of uranium a year – representing a $900 million injection into the domestic economy.

Because India hasn’t signed the NPT, Australia has so far been coy about selling uranium to that country. But since the Nuclear Suppliers Group waiver, India has signed intergovernmental civil nuclear cooperation agreements with France, Russia, the United States and Kazakhstan. If Australia does change its position, BHP Billiton Ltd. (ADR: BHP) will be a big beneficiary.

BHP is the second-largest commodities company in the world, mining steel, aluminum, copper, iron, nickel, titanium, diamonds and gold. It is also proprietor of the world’s largest uranium deposit, the Olympic Dam.

In addition to suppliers, India will need partners to build and operate its new energy grid.

Fenil Maru, an equity advisor at ICICI Bank Ltd (ADR: ICICI), told Knowledge@Wharton that India’s Bharat Heavy Engineering is “looking for a tie-up and has been in talks with Alstom SA, GE Energy, Russia’s Leningrad Metal Factory and Siemens AG (ADR: SI).”

Vendors such as GE Hitachi Nuclear Energy Inc., Toshiba Westinghouse, and Areva also could be enlisted to provide light water reactors, which will be necessary in nuclear parks with six to eight reactors at in a single location.

Source:  India’s Nuclear “Explosion” a Cash Generator for Global Energy Companies

U.S. oil futures rose towards $36 a barrel on Friday, snapping a five-day losing streak ahead of the expected approval of a $789 billion stimulus package by the U.S. Congress to help dig the economy out of recession.

The Democratic-controlled House of Representatives and Senate were expected later on Friday to approve the emergency package to create or save 3.5 million jobs and hand President Barack Obama a big political victory.

The United States is the world’s biggest oil consumer and the economic slowdown that started in the U.S. housing market more than a year ago has undermined energy demand, sending shock waves through the oil market.

Oil prices have fallen more than 70 percent from their peak at almost $150 a barrel last year as economic downturn has spread to all regions of the world.

U.S. crude for March delivery rose $1.84 to $35.82 a barrel by 1611 GMT, after falling $1.96 in the previous session to settle at $33.98 a barrel, its lowest since Dec. 19.

London Brent crude for the new front-month of April fell 73 cents to $45.30 a barrel.

The Brent March contract expired on Thursday at $44.65, extending its premium to U.S. crude to more than $10, mainly due to a glut at the main U.S. storage hub in Oklahoma.

But the Brent premium for the April contract was less than $4, and some analysts expect inventories to ease eventually at Cushing, Oklahoma, the delivery point for the U.S. futures contract, based on West Texas Intermediate (WTI) crude.

OIL DEMAND CONTRACTING

“It looks like a bounce on stimulus hopes, but only concentrated on the two front-months,” said Tom Bentz, analyst at BNP Paribas Commodity Futures.

The Organization of the Petroleum Exporting Countries said on Friday world oil demand would contract more sharply than expected this year due to the economic crisis.

Making a possible case for further supply cuts, OPEC said in its monthly report that global demand would fall by 580,000 barrels per day (bpd) in 2009 to average 85.13 million bpd. Its previous forecast was for demand to contract by 180,000 bpd.

OPEC, which pumps more than a third of the world’s oil, has agreed at meetings since September to cut its oil output by 4.2 million bpd, equal to 5 percent of daily world demand, to combat the slump in prices and demand.

The report said OPEC still had more to do in delivering existing output promises, suggesting OPEC met 65 percent of its pledge to lower output, according to a Reuters calculation based on the OPEC data.

U.S. oil prices have lost about 14 percent this week and are languishing at a three-week low, pressured by persistent demand worries and doubts over the efficacy of the U.S. government’s banks rescue plan.

Oil’s losses on Thursday were exacerbated by news that the number of people staying on unemployment benefits in the United States rose by 11,000 to a record of 4.810 million in the last week of January.

In the short term, analysts believe the market’s direction would be influenced by movements in stock markets.

European stocks rose on Friday, supported by reports of the imminent passage of Washington’s stimulus package. U.S. stock futures also signalled that Wall Street would open higher, also buoyed by the plan.

LONDON, Feb 13 (Reuters)

World stocks fell on Monday as optimism after Britain’s multi-billion rescue plan gave way to concerns about the banking sector after Royal Bank of Scotland reported the biggest ever loss in UK corporate history.

The euro tumbled after Standard & Poor’s cut Spain’s credit rating, following its downgrade of Greece last week. Oil fell 6 percent below $35 a barrel, hit by worries about weakening energy demand in a slowing economy.

Britain will allow banks to insure against steep losses and guarantee their debt to stop the credit crunch pushing the economy into a deep slump. The plan raises the government’s stake in RBS, which said it lost over 20 billion pounds last year, sending shares down nearly 70 percent.

“Whilst today’s measures will be widely welcomed, significant risks remain,” said Keith Bowman, equity analyst at Hargreaves Lansdown.

“All in all, should these measures fail, a further ratcheting-up of bank sector nationalization in order to force lending would appear to be the next step, a conclusion seen beyond all possibility just 12 months ago.”

The FTSEurofirst 300 index of leading European shares fell 2 percent, reversing gains of more than 1 percent earlier. The MSCI world equity index fell 0.8 percent, after making its biggest weekly loss since late November last week.

Emerging stocks fell 0.6 percent. UK banking woes knocked sterling to a two-week low of $1.4452 .

EURO AND DOWNGRADES

S&P cut Spain’s long-term sovereign credit ratings to AA+ from AAA, after it downgraded Greece last week and gave recent warnings on Ireland and Portugal. Worries about European government debt burdens have been growing as countries fund packages to boost local economies.

“It’s a theme in general … and it will continue to run for a while. Looking at the fiscal balances in Europe, that’s where the economic crisis is hurting at the moment – Ireland and Southern Europe,” said Niels From, chief analyst at Nordea in Copenhagen.

The euro fell 1.4 percent to $1.3139 . The dollar fell 0.7 percent to 90.31 yen while it rose 0.7 percent against a basket of major currencies.

The yield premium investors sought for holding the 10-year Spanish benchmark bond compared with the more liquid German government bond held at 114 basis points, having hit a record 122 bps earlier.

U.S. crude oil fell 6.2 percent to $34.25 a barrel, pressured by concerns about weakening oil demand, as well as signs of a resolution of a gas row between Russia and Ukraine and a ceasefire between Israel and Hamas in Gaza.

The March bund future fell 52 ticks.

LONDON, Jan 19 (Reuters)

Oil rose above $36 a barrel on Friday after the United Arab Emirates joined leading exporter Saudi Arabia in deepening supply curbs in line with OPEC’s biggest ever output cut announced last week.

U.S. crude gained $1.01 to $36.36 a barrel by 1219 GMT, off a session high of $36.90.

London Brent rose 94 cents to $37.55.

“The only positive news (for the market)… came from the UAE,” Olivier Jakob of Petromatrix wrote in a report. “For now at least, Saudi Arabia and the UAE seem to be fully complying with the cuts.”

Abu Dhabi National Oil Co (ADNOC), the main producer in the UAE, the world’s fifth-largest oil exporter, said it would cut supplies of February Murban and Upper Zakum allocations by 15 percent and Lower Zakum and Umm Shaif by 10 percent each.

A source with an Asian refiner said the ADNOC cuts were more than expected.

“ADNOC had already allocated January volumes, but they reversed the decision, so that messes up our schedule,” the source said. “For February, the reduction volumes are very large, so we may need to adjust our ship loadings.”

The allocations follow a decision last week by the Organization of the Petroleum Exporting Countries to reduce supplies by 2.2 million barrels per day.

Saudi Arabia informed its customers even before the OPEC meeting they would be receiving less oil.

The OPEC reduction is its deepest ever as the producer group battles a market slump that has sliced around $110 off the price since a July peak above $147 a barrel.

Oil markets were closed on Thursday to mark Christmas Day.

On Wednesday, U.S. crude had settled more than $3 lower after U.S. inventory data showed a fall in crude stocks, but rises in inventories of refined products and another slowdown in fuel demand.

Negative economic data, including news jobless claims in the United States, the world’s biggest oil burner, had risen to a 26-year high and that consumers had cut spending for the fifth consecutive month in November, deepened the bearishness.

Asian economies, once seen as a guarantee of high oil demand even if the United States faltered, have not escaped.

Japan’s deepening recession is expected to cut oil demand in the world’s third-biggest oil consumer after the United States and China, by almost 5 percent in the year starting April.

Consumption was also seen sliding by 5.7 percent in the fiscal year ending next March, the Institute of Energy Economics, Japan, said this week.

Barbara Lewis, LONDON, Dec 26 (Reuters)

The dollar fell anew against the euro and yen while yields on U.S. and European government debt traded at or near historic lows on Wednesday, a day after the bold credit easing by the Federal Reserve to combat a worsening recession.

Oil prices dropped as much as $3 a barrel after dealers said a record supply cut by the Organization of Petroleum Exporting Countries would not be enough to counter slumping energy demand brought on by the global economic downturn.

Equity markets on either side of the Atlantic slid as the initial enthusiasm over the Fed’s surprisingly aggressive interest rate cut on Tuesday gave way to weak financial results at key banks and European data reinforced a dismal outlook.

Despite yields already at historic lows, investors piled into debt. Short-term government bonds still offer a safe-haven for investors fearful that a deepening recession will lead to further losses in other assets.

The yield on 30-year U.S. government bonds led a rally in the United States, touching a series of record lows to yield as little as 2.58 percent. Yields move in the opposite direction of bond prices.

“We are trading in no man’s land and expect this will continue into year-end,” said Thomas di Galoma, head of government trading at Jefferies & Co. in New York.

The benchmark 10-year U.S. Treasury note was up 36/32 in price to yield 2.14 percent.

Two-year German government bond yields hit their lowest level since the euro zone was created, with the two-year Schatz hitting 1.842 percent , according to Reuters data.

It was the lowest level since the rate-sensitive Schatz was launched in 1991.

The Fed’s surprisedly large cut further eroded the U.S. currency’s appeal against the euro, which has gained a staggering 11 percent so far during the month.

The dollar hit a fresh 2-1/2 month low versus the euro and fell towards a recent 13-year low against the yen, in a plunge that stoked speculation Japanese authorities may intervene to rein in its climb, which is hurting the nation’s exporters.

“The underlying story in the FX market remains yield. The fact that the Fed made this major policy move yesterday really changed the balance of power towards the euro for the time being,” said Boris Schlossberg, director of currency research at GFT Forex in New York.

The dollar fell against a basket of major currencies, with the U.S. Dollar Index off 1.48 percent at 79.011. Against the yen, the dollar fell 1.21 percent at 87.85.

The euro rose 1.65 percent at $1.4331.

U.S. and European stocks fell. Morgan Stanley shares slid after reporting a worse-than-expected $2.2 billion quarterly loss as the credit crisis caused more write-downs.

BNP Paribas revealed an 11-month loss at its investment banking unit, hit by exposure to an alleged fraud by U.S. financier Bernard Madoff.

“Weaker company data are back in focus,” said Heinz-Gerd Sonnenschein, equity strategist at Postbank in Bonn, Germany.

“The news about BNP is the main trigger regarding European banks, while Morgan Stanley’s results only seem to seem to have a marginal impact,” he added.

Apple Inc was a major weight on the Nasdaq after the iPod maker said Chief Executive Steve Jobs will not deliver the keynote address at the Macworld trade show next month, reviving concern about his health.

Apple’s shares tumbled about 7 percent.

Sal Arnuk, co-manager of trading at Themis Trading in Chatham, New Jersey, said investors were initially enthused after the Fed’s moves on Tuesday made it clear it would do whatever it takes to get the U.S. economy back on track.

“This morning we awaken with a hangover and the realization of how many bullets do they have left?” Arnuk said.

Before 1 p.m., the Dow Jones industrial average was off 41.50 points, or 0.47 percent, at 8,882.64. The Standard & Poor’s 500 Index was down 3.55 points, or 0.39 percent, at 909.63. The Nasdaq Composite Index was down 6.67 points, or 0.42 percent, at 1,583.22.

The FTSEurofirst 300 index of top European shares closed down 0.76 percent at 828.53 points.

OPEC announced an agreement to cut 2.2 million barrels per day of output starting Jan. 1 — the biggest single reduction on record — adding to previous cuts of 2 million barrels since September.

U.S. light sweet crude oil fell $2.36 percent to $41.24 a barrel.

Spot gold prices rose $8.00 to $864.70 an ounce.

Asian stocks rose overnight, supported by sectors sensitive to interest rates in anticipation regional policy-makers will take more aggressive steps to support growth after the Federal Reserve’s easing on Tuesday.

The MSCI index of Asian-Pacific stocks outside Japan rose 2.3 percent to the highest since Nov. 11. But Japan’s Nikkei share averagE shed early gains to end down 0.5 percent as the yen’s strength walloped exporters.

Herbert Lash
NEW YORK, Dec 17 (Reuters)