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Crude oil fell to the lowest level in almost five months amid growing speculation Greece may leave the euro currency union and as Saudi Arabia’s oil minister said prices should decline further.
Crude oil futures dropped as much as 2.6 percent after Greece failed to agree on a unity government and European Union officials considered its possible exit from the euro. Saudi Arabia wants crude prices lower than they are now, Oil Minister Ali al-Naimi said yesterday in Adelaide, Australia. The kingdom is pumping at its highest rate in almost three decades, OPEC data show.
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Managed Futures – Ryo Ishiyama, a former Deutsche Securities Inc. banker, plans to start a hedge fund investing in global commodities futures as early as July using a strategy he employed on his own personal investments.
The hedge fund will employ a so-called CTA strategy that uses computer systems to invest in exchange-traded futures around the world, said Ishiyama, 32, who set up Tokyo-based Steinberg Capital Co. in October 2011. The fund will have 300 million yen ($3.8 million) initially, 200 million yen of which is Ishiyama’s own money. He plans to raise the fund’s maximum capacity of 1 billion yen in about a year, he said.
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Crude oil fell for a sixth day, the longest stretch of declines in almost two years, after U.S. crude supplies climbed and as Greece struggled to form a government, bolstering concern that Europe’s debt crisis will spread.
Crude oil futures declined as much as 1.5 percent after the American Petroleum Institute said late yesterday that stockpiles rose 7.8 million barrels last week to 378 million, the most since August 1990. A government report today may show supplies rose 2 million barrels, according to a Bloomberg survey. Equities fell and the euro weakened after weekend elections in Greece.
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Crude oil fell below $100 a barrel for the first time since February as U.S. employers added fewer workers than forecast, bolstering concern that the economy of the world’s largest crude-consuming country may be losing speed.
Crude oil futures declined as much as 2.6 percent after Labor Department figures showed payrolls climbed 115,000, the smallest gain in six months. The median estimate of 85 economists surveyed by Bloomberg called for a 160,000 advance. Elections in France, Greece, Italy and Germany this weekend may determine how the regions governments respond to Europe’s financial crisis.
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Managed Futures – Investors are significantly more interested in diversifying portfolios with products that yield dividends while insulating against volatility, such as Direct Investments, today than in 2011.
–One in four respondents are unfamiliar with Direct Investments, stressing the need for advisors to properly educate clients about their diversification and income-generation capabilities.
–Direct investing in hard assets — like Non-Listed Real Estate Investment Trusts (NL REITs), Oil and Gas and Equipment Leasing Programs, Private Equities and Managed Futures– is a viable way to diversify an investment portfolio.
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Crude oil slid from the highest level in five weeks as increasing crude stockpiles in the U.S. and declining industrial output in Europe fanned concern that global demand may weaken.
Crude oil futures in New York dropped as much as 0.6 percent. U.S. crude inventories rose 2.04 million barrels last week, the fifth gain in six weeks, the American Petroleum Institute said yesterday. Euro-area manufacturing shrank for a ninth month in April, while France, Italy and Greece plan elections this weekend. Prices advanced 1.2 percent yesterday after an index of U.S. manufacturing increased at the fastest pace in 10 months.
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Oil traded near the highest level in more than a week after Federal Reserve Chairman Ben S. Bernanke said that while further stimulus is unlikely, central banks “remain prepared to do more” to protect the economy.
Futures were little changed, paring an earlier gain after more Americans than forecast filed applications for unemployment benefits last week. Economic growth is expected to “remain moderate over coming quarters and then to pick up gradually,” the Federal Open Market Committee said in a statement. U.S. crude supplies gained more than estimated last week, and Iran’s envoy in Moscow said his country may halt the expansion of its atomic program to avert new Western sanctions.
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