The CBOE Volatility Index VIX <.VIX>, Wall Street's so-called fear gauge, jumped 13.1 percent to 20.75 on growing uncertainty about oil. The index measures the cost of using options as insurance against a decline in the S&P 500 <.SPX> index.
The Dow Jones industrial average <.DJI> fell 169.38 points, or 1.39 percent, at 12,056.96. The Standard & Poor's 500 Index dropped 21.04 points, or 1.59 percent, to 1,306.18. The Nasdaq Composite Index <.IXIC> lost 44.86 points, or 1.61 percent, to 2,737.41.
NYMEX-NEW YORK, March 1 (Reuters) - U.S. crude oil futures settled at their highest level in 2-1/2 years on Tuesday, as Libya's popular revolt flared up, raising more concerns that similar upheavals may engulf other oil producers in the Middle East and North Africa.
The United States warned Libya could descend into civil war unless Muammar Gaddafi steps down intensifying its pressure against the intransigent leader.
On the New York Mercantile Exchange, crude for Aprildelivery
CBOT-CHICAGO, March 1 (Reuters) - Chicago Board of Trade grain and soy complex close on Tuesday.
CBOT-SOYBEANS - May
New-crop November
CBOT-SOYOIL - May
FCPO-KUALA LUMPUR, March 1 (Reuters) - Malaysian palm oil futures jumped as much as 2.6 percent on Tuesday as traders focused on buoyant crude markets setting the stage for growing biodiesel demand.
Although palm oil is less likely to be channelled into biofuels due to lack of government subsidies, aggressive mandates in Brazil and the United States may see more soyoil taken up, which leaves palm oil to dominate the food sector.
Palm oil has been volatile like most commodities as traders are trying to process whether rising crude oil, owing to the spreading Middle East unrest, will slow economic growth or fuel demand for feedstocks that can be converted into diesel.
The benchmark May crude palm oil contract
REGIONAL EQUITIES-BANGKOK, March 1 (Reuters) - Southeast Asian stock markets ended higher on Tuesday as investors bought commodity shares because of rising inflation expectations and banks gained due to the prospect of higher interest rates around the region.
Indonesia <.JKSE> rose 1.2 percent and Thailand <.SETI> gained 0.7 percent, led by banks, after both reported inflation data for February and economists forecast a rise in interest rates there.
Other markets in the region gained, led by Singapore's Straits Time Index <.FTSTI>, climbing almost 2 percent to around a one-week high of 3,067.60.
Singapore suffered a 5.3 percent loss in February, its worst monthly fall since May and the second worst in Southeast Asia after Vietnam's 9.6 percent.
Malaysia <.KLSE> and the Philippines <.PSI> each gained less than 1 percent on the day. Vietnam <.VNI> rose 1 percent after losing 10 percent in February after a dong devaluation.
Volume was relatively active across the region on Tuesday, with turnover in Singapore rising to 1.4 times its 30-day average, followed by Indonesia's 1.2 times. Turnover in Malaysia and Vietnam both fell short of their 30-day average.
The Singapore Exchange
Shares in palm oil firms climbed across the region as Malaysian palm oil futures rose 1.3 percent. Singapore's Wilmar International