* Oil jumps over 2 pct, Goldman says market in deficit
* Yen dips vs dollar, euro edges up
* Energy sector leads Wall St higher
* Irish yields lowest in over a month after Moody's upgrade
(Updates prices, adds comment)
By Rodrigo Campos
NEW YORK, May 16 (Reuters) - Crude futures hit a six-month
high on Monday as output disruptions were expected to cut into a
long-standing glut in the market, while higher commodity prices
boosted basic materials and energy shares.
The benchmark U.S. Treasury yield rose after matching a
one-month low hit Friday and the dollar ticked lower, caught
between a weaker yen and a stronger euro.
Supply disruptions in Nigeria, Canada and Venezuela have
most likely pushed oil production below consumption levels in
May for the first time in at least two years. That means the
world has started eating into the huge stockpiles of oil that
knocked as much as 70 percent off crude prices between 2014 and
early 2016.
The energy sector led Wall Street higher after the S&P 500
closed Friday its third straight week of losses. Apple AAPL.O ,
up 3.60 percent at $93.78 after Warren Buffett disclosed a near
$1 billion stake, also gave U.S. stocks support.
News of Buffett's Apple stake and higher oil prices were the
main drivers of the stock market, said Paul Nolte, portfolio
manager at Kingsview Asset Management in Chicago.
He said he expects the boost to stocks to last through the
whole session.
The Dow Jones industrial average .DJI was up 156.42
points, or 0.89 percent, to 17,691.74, the S&P 500 .SPX had
gained 17.99 points, or 0.88 percent, to 2,064.6 and the Nasdaq
Composite .IXIC had added 54.19 points, or 1.15 percent, to
4,771.87.
The pan-European FTSEurofirst 300 share index .FTEU3
closed down less than 0.1 percent. Volume was constrained with
the Frankfurt Stock Exchange among European bourses closed for a
holiday.
MSCI's gauge of stocks across the globe .MIWD00000PUS rose
0.64 percent.
Oil prices rose sharply, partly after Goldman Sachs (NYSE:GS) said
disruption to supply had seen the market flip into deficit and
U.S. crude CLc1 could trade as high as $50 per barrel in the
second half of 2016.
Brent crude LCOc1 hit $49.47 per barrel, its highest price
since early November. The international benchmark, which has
risen nearly 80 percent from lows touched in January, last
traded at $48.86, up 2.2 percent on the day.
U.S. crude CLc1 was up 3 percent at $47.59.
The yen JPY= edged down 0.38 percent to 109.01 per dollar
and the euro EUR= rose 0.15 percent to $1.1322. The greenback
was marginally lower against a basket of major currencies
.DXY , having touched a three-week high on Friday.
U.S. Treasury yields rose as prices fell despite a
weaker-than-expected reading in the New York Fed manufacturing
survey, as traders focused on the gains in the oil market.
"A lot of the overnight data has been kind of weak and
people have just roundly ignored it," said Aaron Kohli, interest
rates strategist at BMO Capital Markets in New York.
"Everyone was just focusing on crude this morning."
The U.S. 10-year yield US10YT=RR fell 12/32 in price to
yield 1.7464 percent, compared to 1.7050 late on Friday.
Irish yields IE10YT=TWEB touched the lowest in more than a
month after Moody's Investor Services raised its credit rating
to A3 from Baa1. It maintained a positive outlook on Ireland,
which entered a three-year international bailout in 2011.
"The upgrade by Moody's expands the range of potential
buyers of Irish bonds. Some investors, particularly in Asia
require a minimum 'A' grade from all of the three big agencies,"
Cantor Fitzgerald strategist Ryan McGrath said.
Copper CMCU3 rose 0.5 percent to $4,652 per tonne, having
hit a near three-month low on Friday.
Spot gold XAU= was little changed at $1,272.93 an ounce.