DJI- NEW YORK, Feb 23 (Reuters) - Brent oil priced in euros hit a record high on Thursday on heightened tension between Iran and the West while U.S. stocks neared peaks not seen since before the 2008 collapse of Lehman Brothers.
The rise in Brent, the benchmark for European crude and most international oil trades, poses a new headache for cash-strapped Europe, still reeling from a two-year-old sovereign debt crisis.
German data helped the euro rise to its highest in 2-1/2 months against the U.S. dollar. The Ifo think tank survey of business sentiment rose to its strongest in seven months.
But forecasts for the euro zone economy underscored the pressures facing the region. The European Commission's half-yearly forecast showed output in the 17 nations sharing the euro will contract by 0.3 percent and the broader EU bloc will stagnate.
Economists worry that rising oil prices will undermine efforts to put the region on a stronger footing as well as dampen the outlook for the global economy.
Iran's stance has sparked fears that its confrontation with the West over its disputed nuclear program would escalate and affect oil flow from the Middle East.
"It's all about Iran. The inspectors leaving intensifies the concerns and backs up the Israeli argument that diplomacy will not work," said John Kilduff, partner at Again Capital LLC in New York.
Underpinning U.S. stocks, weekly jobless claims data added to signs of progress in the U.S. economy. Data showed U.S. first-time claims for unemployment benefits held steady at a four-year low of 351,000 last week.
The Dow Jones industrial average closed up 46.02 points, or 0.36 percent, at 12,984.69. The Standard & Poor's 500 Index ended up 5.80 points, or 0.43 percent, at 1,363.46. The Nasdaq Composite Index finished up 23.81 points, or 0.81 percent, at 2,956.98.
NYMEX-NEW YORK, Feb 23 (Reuters) - U.S. crude futures rose for a sixth straight session on Thursday as tensions surrounding Iran's nuclear program and the potential for supply disruption, along with a weaker dollar index, countered any pressure from
rising inventories.
After Iran did not grant the U.N.'s International Atomic Energy Agency access to areas targeted for inspection this week, fears of a confrontation with the West have been heightened.
Supreme Leader Ayatollah Ali Khamenei said Iran's nuclear policies would not change despite mounting international pressure.
The euro extended gains against the dollar and yen, hitting fresh 2-1/2 month and 3-1/2 month peaks, respectively, traders said.
The euro was bolstered by better-than-expected German business confidence data which offset a bleak economic forecast from the European Union.
U.S. crude oil inventories rose 1.63 million barrels last week, more than the 500,000 barrel build expected.
Gasoline stocks fell 649,000 barrels and distillate stocks fell 208,000 barrels. Gasoline inventories were expected to be down by only 100,000 barrels and distillates by 1.4 million barrels, a Reuters survey of analysts ahead of the weekly
inventory data showed.
On the New York Mercantile Exchange, April crude rose $1.55, or 1.46 percent, to settle at $107.83, having traded as low as $105.45 and extending gains to more than $2, above $108, in post-settlement trading.
CBOT SOYBEANS- Soybean futures on the Chicago Board of Trade ended higher a weaker dollar and worries about South American crop problems that may signal more export demand for U.S. supplies, traders said.
Soymeal followed soybeans higher, but soyoil ended lower on profit-taking and meal/oil spreading.
Front-month March soybeans reached a five-month high at $12.80 a bushel, the highest spot soybean price since Sept 23, 2011, but pared gains by the close. Soybeans have finished higher in eight of the last nine sessions.
Argentina's Rosario grains exchange cut its estimate of the country's soy harvest to 44.5 million tonnes, down 5 million from its last monthly estimate, citing drought damage.
Weak dollar adds support, making dollar-backed soybeans more competitive. The dollar fell to a 10-week low against the euro as better-than-expected German data offset a dismal economic forecast from the European Commission.
FCPO- SINGAPORE, Feb 23 (Reuters) - Malaysian crude palm oil futures closed higher on Thursday although gains were limited by investor concern about slowing global growth that could curb commodity demand.
Prices rallied to new highs earlier this week as the second bailout deal for Greece boosted investor confidence, but worries have now set in on a longer-term growth outlook as fresh data showed the euro zone may slip into a recession.
Right now the market is tracking external markets and not so much on crude palm oil fundamentals, which are not too bullish or bearish," said James Ratnam, an analyst with TA Securities in Malaysia.
Benchmark May palm oil futures on the Bursa Malaysia Derivatives Exchange gained 0.7 percent to 3,272 ringgit ($1,086) per tonne. Prices hit a high of 3,294 ringgit on Wednesday, the highest since June 9 last year. Traded volumes were thin at 22,589 lots of 25 tonnes each, compared to the usual 25,000 lots.
Reuters analyst Wang Tao said prices will consolidate in a range of 3,244-3,292 ringgit per tonne based on technical analysis.
REGIONAL EQUITY- Feb 23 (Reuters) - Southeast Asian stock markets fell on Thursday on fears over rising oil prices and a possible recession in the euro zone with lingering concerns over Greek sovereign debt crisis still undermining the appetite for risky assets.
The region's markets, following others in Asia, fell for a second day, with MSCI's broadest index of Asia Pacific shares outside Japan <.MIAPJ0000PUS> down 0.5 percent down and the MSCI index for Southeast Asia <.MISU00000PUS> 0.3 percent weaker at
0852 GMT.
Singapore fell 0.9 percent for its lowest close since Feb. 10. Indonesia also lost 0.9 percent, to a one-week low, and had a $13.4 million foreign outflow.
Malaysia ended 0.3 percent down, but foreign investors bought a net $35 million of shares, data from the country's bourse showed.
In Singapore, disappointing earnings also hit the sentiment after Singapore's Neptune Orient Lines Ltd , the world's sixth largest container shipping firm, reported a larger-than-expected fourth quarter loss due to high fuel costs
and lower freight rates.
"Investors are getting more jittery, as we saw several corporate earnings from large blue chips that were quite disappointing," said Andrew Chow, head of research at UOB Kay Hian, citing results from palm oil firm Wilmar International Ltd on Wednesday and Neptune Orient.
Financials pulled down Jakarta and Kuala Lumpur, led by a 2.3 percent fall in Indonesia's largest lender Bank Mandiri and 1.1 percent loss for Malaysia's CIMB Group.
Analysts said the market will consolidate at a lower level said due to profit taking and concerns over the healthy recovery of the global economy.
Neptune closed 5.6 percent weaker after plummeting 11.2 percent in early trade, while Wilmar ended 1.2 percent down.
