US open: Oil rises on geopolitical tensions



LONDON (ShareCast) - -Iraq tells Arab League oil should be used as a weapon

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The main US equity benchmarks are now being called to open higher by 0.2% on average.

That ahead of this evening's contacts between President Barack Obama and representatives from both parties aimed at resolving the "fiscal cliff."

Ahead of that, The Wall Street Journal (WSJ) has reported that the White House is looking to modify legislation pertaining to the automatic sequestration of federal funds scheduled to go into effect come January 1st, should Congress be unable to reach an agreement on the deficit.

Gap, the largest US specialty-apparel retailer, this morning raised its full-year earnings forecasts.

Dell (NasdaqGS: DELL - news) is down after its revenue forecast missed analysts' estimates.

Dynavax Technologies (NasdaqCM: DVAX - news) is tumbling 48% after failing to win the backing of US regulatory advisers for its hepatitis B vaccine.

Weaker than forecast economic data

US industrial production contracted at a 0.4% month-on-month pace in October (Consensus: 0.2%).

Crude futures are now rising moderately

10 year US Treasuries are now trading flat, with yields at the 1.59% level.

Front month West Texas crude futures are rising by 1.19% to the $86.40/barrel mark on the NYMEX.