Buy ML Copper Heres The Reason Why....

March 21 2011 Buy And Sells Today

Anonymous continues to sell, which sucks, but copper keeps moving, and the stock has risen 4-5% today.

House Positions for C:ML from 20110321 to 20110321 House Bought $Val Ave Sold $Val Ave Net $Net 39 Merrill Lynch 629,000 2,314,057 3.679 226,700 828,614 3.655 402,300 -1,485,443 90 Barclays 121,100 445,092 3.675 100 370 3.70 121,000 -444,722 121 Jennings 144,700 524,987 3.628 47,100 171,665 3.645 97,600 -353,322 65 Goldman 82,800 302,519 3.654 400 1,466 3.665 82,400 -301,053 23 State Street 48,219 177,783 3.687 0 48,219 -177,783 15 UBS 39,200 143,812 3.669 0 39,200 -143,812 9 BMO Nesbitt 28,000 102,795 3.671 3,087 11,427 3.702 24,913 -91,368 53 Morgan Stanley 37,300 136,609 3.662 19,300 71,036 3.681 18,000 -65,573 62 Haywood 15,100 55,266 3.66 1,900 6,954 3.66 13,200 -48,312 79 CIBC 284,473 1,043,061 3.667 274,050 1,006,846 3.674 10,423 -36,215 2 RBC 153,900 562,513 3.655 144,270 530,188 3.675 9,630 -32,325 58 Qtrade 3,000 11,040 3.68 0 3,000 -11,040 132 Acker Finley 1,750 6,408 3.662 415 1,522 3.667 1,335 -4,886 14 ITG 2,200 7,952 3.615 1,700 6,222 3.66 500 -1,730 94 Hampton 18 66 3.667 0 18 -66 123 Citigroup 0 60 219 3.65 -60 219 13 Instinet 600 2,214 3.69 2,600 9,550 3.673 -2,000 7,336 19 Desjardins 8,950 32,753 3.66 11,550 42,378 3.669 -2,600 9,625 81 HSBC 0 3,100 11,377 3.67 -3,100 11,377 124 Questrade 9,000 33,114 3.679 14,500 53,045 3.658 -5,500 19,931 33 Canaccord 15,700 58,363 3.717 29,000 106,330 3.667 -13,300 47,967 101 Newedge 0 14,700 54,215 3.688 -14,700 54,215 99 Jitney 48,900 179,087 3.662 65,500 241,046 3.68 -16,600 61,959 80 National Bank 90,500 330,223 3.649 130,680 479,013 3.666 -40,180 148,790 36 Latimer 25,000 92,850 3.714 77,100 282,547 3.665 -52,100 189,697 7 TD Sec 88,255 323,051 3.66 148,376 543,958 3.666 -60,121 220,907 72 Credit Suisse 15,900 58,547 3.682 90,967 333,413 3.665 -75,067 274,866 89 Raymond James 1,100 4,048 3.68 83,800 309,456 3.693 -82,700 305,408 85 Scotia 192,950 707,674 3.668 304,060 1,116,598 3.672 -111,110 408,924 1 Anonymous 356,100 1,307,043 3.67 748,700 2,743,472 3.664 -392,600 1,436,429 TOTAL 2,443,715 8,962,927 3.668 2,443,715 8,962,927 3.668 0 0

74 GMP

899,400

3,186,449

3.543

0

899,400

$3,186,449

GMP bought 899.400 shares and didn't sell 1 share...spent $3,186,449.00 today...wonder why?

Vladimir F. Iorich accumulating ML-T

March 2011 = $4.31 x 4.18 Million Shares and

February 2011= $4.29 x 2.6 Million shares

Vladimir F. Iorich
Russian self made billionaire. Former commercial director of Kuznets Coal. Became president of Swiss firm Conares Holding in 1995. Currently Chief Executive Officer and member of our Board of Directors of Mechel. From 1995 to December of 2004 Mr. Iorich served as the President of Mechel Trading. From 2001 to 2004, he served as a Director of MMK, a Russian steel producer in which we own 16.9% of the common and 12.2% of the preferred shares. Chairman of the Board of Directors and President of Conares Holding AG. Mr. Iorich beneficially owns 47.8% of Mechel common shares, including through his ownership of 50% of the capital stock of Conares Holding AG, which owns 26.6% of Mechel common shares. Mechel is one of Russia’s leading mining and metals companies, uniting producers of coal, iron ore, nickel steel, rolled products, and hardware. Education: degree in engineering and economics from Kuzbass Polytechnic Institute. Fortune $1.5 billion as of 2005.

Big copper producers shopping for smaller miners - Could ML-T Be Next?

* Top players eye developed assets over exploration

* Copper prices at record levels as supply fears grow

* Predators could also become prey as sector heats up (In U.S. dollars unless noted)

By Bhaswati Mukhopadhyay and Julie Gordon

BANGALORE/TORONTO, Feb 22 (Reuters) - A record run for copper prices, fueled by Chinese industrial demand, has the world's most prolific copper producers shopping for smaller miners capable of boosting their output almost immediately.

Dozens of Canadian-based juniors have the potential to become prime targets. The strongest candidates already have operating mines with healthy growth profiles, and their share prices are undervalued, analysts say.

The drive to acquire is especially urgent because the output at some of the world's top producers is falling. Rio Tinto (RIO.L) sees copper demand doubling in the next 15 to 20 years but the Anglo-Australian mining giant experienced a 16 percent drop in mined production last year.

"We really haven't developed the next generation of new mines in terms of finding large-scale projects," said analyst John Hughes at Desjardins Securities. "Without the next wave of proper supply, junior companies with large resources will continue to be targets for the larger mining companies."

As a consequence, senior producers such as First Quantum (FM.TO) and Freeport-McMoRan (FCX.N), as well as Vale (VALE5.SA), BHP Billiton (BLT.L) and other diversified miners, will line up to buy established production rather than invest in development projects from scratch, analysts say.

"It takes such a long time to find something, then permit it, then build it, then ramp it up," said David Radclyffe, an analyst at BMO Capital Markets. "You're going to miss that leverage to the current price that you can get today."

ML-T has Bottom and should break back thru 4.00...ALL Index Funds MUST buy ML-T

Recent Close Prices and Bid/Ask

	Date		Ex : Sym		Open		High		Low		Close		Chg		Vol		#Tr		Bid		Ask
	2011-03-17		T : ML		3.65		3.85		3.62		3.82		0.32		2,205,378		4771		3.81		3.86
	2011-03-16		T : ML		3.55		3.73		3.38		3.50		0.03		2,791,801		5410		3.50		3.53
	2011-03-15		T : ML		3.30		3.50		3.29		3.47		-0.07		1,904,120		3266		3.46		3.47
	2011-03-14		T : ML		3.48		3.58		3.41		3.54		-0.03		1,432,757		2807		3.51		3.56
	2011-03-11		T : ML		3.35		3.64		3.35		3.57		0.06		1,937,986		2753		3.57		3.58
	2011-03-10		T : ML		3.53		3.66		3.26		3.51		-0.19		4,054,244		6086		3.51		3.53
	2011-03-09		T : ML		3.87		3.92		3.64		3.70		-0.34		3,233,945		4604		3.66		3.70
	2011-03-08		T : ML		4.12		4.19		3.94		4.04		-0.10		1,923,479		3405		4.02		4.04
	2011-03-07		T : ML		4.30		4.32		4.11		4.14		-0.14		945,692		1824		4.14		4.18
	2011-03-04		T : ML		4.39		4.45		4.28		4.28		-0.11		1,190,784		2166		4.27		4.30

Mercator Minerals to be included in S&P/TSX index

2011-03-14 08:24 ET - News Release

Mr. Michael Surratt reports

MERCATOR ANNOUNCES INCLUSION IN S&P/TSX COMPOSITE INDEX

On March 11, 2011, Standard & Poor's Canadian Index Operations announced the addition of Mercator Minerals Ltd. to the S&P/TSX Composite Index as a result of its quarterly review. The addition will be effective at market open on Monday, March 21, 2011.

"The addition of Mercator to the S&P/TSX Composite Index is a result of the substantial increase in market capitalization of Mercator over the past number of months," said Michael Surratt, president and chief executive officer. "Inclusion in the index should encourage broader participation in Mercator's shareholder register, particularly by index funds and similar investment vehicles."

We seek Safe Harbor.

Mercator Minerals Ltd
Symbol	C : ML
Shares Issued	200,421,809
Close 2011-03-11	C$ 3.57

House Positions for C:ML from 20110318 to 20110318

House	Bought	$Val	Ave	Sold	$Val	Ave	Net	$Net
7 TD Sec	8,186,117	29,097,375	3.554	6,314,571	22,563,624	3.573	1,871,546	-6,533,751
85 Scotia	1,281,070	4,564,592	3.563	189,100	691,200	3.655	1,091,970	-3,873,392
74 GMP	899,400	3,186,449	3.543	0			899,400	-3,186,449
9 BMO Nesbitt	351,271	1,258,868	3.584	127,578	453,694	3.556	223,693	-805,174
89 Raymond James	1,473,100	5,647,337	3.834	1,253,100	4,795,921	3.827	220,000	-851,416
14 ITG	591,585	2,104,084	3.557	413,525	1,463,135	3.538	178,060	-640,949
33 Canaccord	88,400	323,043	3.654	14,500	54,240	3.741	73,900	-268,803
39 Merrill Lynch	161,500	593,069	3.672	95,400	364,910	3.825	66,100	-228,159
2 RBC	345,285	1,252,358	3.627	292,553	1,054,748	3.605	52,732	-197,610
99 Jitney	190,100	726,769	3.823	139,400	531,593	3.813	50,700	-195,176
62 Haywood	35,000	125,250	3.579	0			35,000	-125,250
124 Questrade	38,290	144,905	3.784	4,500	17,010	3.78	33,790	-127,895
23 State Street	32,900	116,137	3.53	0			32,900	-116,137
19 Desjardins	32,900	124,682	3.79	2,000	7,640	3.82	30,900	-117,042
121 Jennings	16,900	65,785	3.893	0			16,900	-65,785
81 HSBC	13,400	50,297	3.754	1,000	3,880	3.88	12,400	-46,417
101 Newedge	30,100	114,782	3.813	19,700	75,799	3.848	10,400	-38,983
70 Manulife	1,000	3,880	3.88	0			1,000	-3,880
58 Qtrade	32,704	124,809	3.816	32,000	122,720	3.835	704	-2,089
132 Acker Finley	1,668	6,257	3.751	1,416	5,338	3.77	252	-919
57 Interactive	0			145	539	3.717	-145	539
67 Northern	0			1,000	3,770	3.77	-1,000	3,770
46 Macquarie	0			3,000	11,460	3.82	-3,000	11,460
80 National Bank	293,650	1,088,369	3.706	322,300	1,234,687	3.831	-28,650	146,318
79 CIBC	1,606,097	5,855,369	3.646	1,663,767	6,036,301	3.628	-57,670	180,932
90 Barclays	15,727	57,611	3.663	160,477	614,757	3.831	-144,750	557,146
123 Citigroup	0			208,098	741,202	3.562	-208,098	741,202
15 UBS	66,000	248,385	3.763	324,400	1,158,747	3.572	-258,400	910,362
65 Goldman	10,900	41,217	3.781	433,200	1,543,710	3.564	-422,300	1,502,493
1 Anonymous	1,369,300	5,043,019	3.683	1,883,500	6,788,273	3.604	-514,200	1,745,254
72 Credit Suisse	160,565	600,024	3.737	948,296	3,365,064	3.549	-787,731	2,765,040
53 Morgan Stanley	51,004	184,164	3.611	1,086,360	3,937,606	3.625	-1,035,356	3,753,442
13 Instinet	20,992	74,114	3.531	1,462,039	5,181,432	3.544	-1,441,047	5,107,318
TOTAL	17,396,925	62,823,000	3.611	17,396,925	62,823,000	3.611	0	0

Mercator expects 40% higher Cu, Mo production in 2011 2011-03-08 09:04 ET - News Release Mr. Michael Surratt reports MERCATOR ANNOUNCES 2011 PRODUCTION GUIDANCE, PHASE II UPDATE Production of copper and molybdenum for 2011 is projected to be approximately 40 per cent higher than 2010 at Mercator Minerals Ltd.'s wholly owned Mineral Park mine in Arizona. Copper production for 2011 is projected to be approximately 45.0 million pounds, as compared with 32 million pounds in 2010 and molybdenum production is projected to be approximately 6.0 million pounds, as compared with 4.3 million pounds in 2010. 2011 projected production by quarter First quarter 8.8 million pounds of copper; 900,000 pounds molybdenum. Second quarter 9.5 million pounds of copper; 1.0 million pounds of molybdenum. Third quarter 14.1 million pounds of copper; 1.8 million pounds of molybdenum. Fourth quarter 12.5 million pounds of copper; 2.3 million pounds of molybdenum. Copper production represents both copper in concentrate and copper cathode. The significant increases in the third and fourth quarter production levels are attributable to the increase in throughput resulting from the completion of the phase II plant expansion. Variability between copper and molybdenum weightings in the production profile are due to respective grade fluctuations in the 2011 mine plan. Phase II construction update Major milestones have either been achieved or are near completion in the phase II expansion program, including: The SAG mill is fully installed and operational. The second line of ball mills is mechanically installed and the motors are being set. The second water line is complete and the pump station upgrades are in progress. The concrete for the second set of rougher cells is 50 per cent complete. The main support structure for the second stacker is complete and all of the structural steel is on site. The second mill transformer is being installed. Phase II construction is expected to be completed by the end of June, followed by a ramp-up period culminating in full capacity throughput of 50,000 tons per day in August. "The expansion of Mineral Park continues on schedule and with the completion of phase II, the mine will become one of the largest operations in North America," said Mike Surratt, Mercator's president and chief executive officer. Gary Simmerman, BSc, Mercator's vice-president of engineering, a qualified person as defined by NI 43-101, supervised the preparation of and verified the Mercator technical information contained in this release. We seek Safe Harbor. Insider Vladimir Iorich (March 2 2011) Buying at $4.31 x 4.18Million Shares Mercator Minerals Ltd. (ML) As of March 17th, 2011 Filing Date Transaction Date Insider Name Ownership Type Securities Nature of transaction # or value acquired or disposed of Unit Price Mar 03/11 Mar 02/11 Iorich, Vladimir Indirect Ownership Common Shares 10 - Acquisition in the public $4.318 market 4,188,700 $4.318 Feb 24/11 Feb 22/11 Broch, Michael J. Direct Ownership Common Shares 51 - Exercise of options 50,968 Feb 24/11 Feb 22/11 Broch, Michael J. Direct Ownership Common Shares 51 - Exercise of options 57,439 Feb 24/11 Feb 22/11 Broch, Michael J. Direct Ownership Options 51 - Exercise of options -100,000 $2.270 Feb 24/11 Feb 22/11 Broch, Michael J. Direct Ownership Options 51 - Exercise of options -200,000 $3.300 Feb 24/11 Feb 22/11 Iorich, Vladimir Indirect Ownership Common Shares 10 - Acquisition in the public $4.290 market 2,650,000 $4.290 Feb 20/11 Feb 15/11 Quin, Stephen P. Direct Ownership Common Shares 10 - Disposition in the public market -10,000 $4.724 Feb 18/11 Feb 16/11 Vankoughnett, Ronald Earl Direct Ownership Common Shares 10 - Disposition in the public market -7,600 $4.750 Feb 18/11 Feb 16/11 Vankoughnett, Ronald Earl Direct Ownership Common Shares 10 - Disposition in the public market -42,400 $4.760 Feb 18/11 Feb 16/11 Vankoughnett, Ronald Earl Direct Ownership Common Shares 51 - Exercise of options 50,000 $2.090 Fundamental Data - MERCATOR MINERALS LTD. Security Type Equity Shares Issued 200,421,809 Market Cap $ 765,611,000 Year High 4.90 Year Low 1.27 Annual Earnings/Share -0.0005 CAD P/E Ratio -7640.00 Annual Dividend/Share n/a Annual Dividend Yield 0.00 % Ex-Dividend Date Sector 15104020 - Diversified Metals & Mining Short History Symbol Report Date Volume Change % of Float ML - T 2011-03-15 6,842,211 -458,871 3.41 ML - T 2011-02-28 7,301,082 -34,433 3.66 ML - T 2011-02-15 7,335,515 -238,514 3.68

Targeted Security Holder List

	Holder Name	Shares Held	% of O/S	Report Date	Change
	NORTHWEST SPECIALTY EQUITY FUND	1,245,850	0.63 %	20100930	488,575
	SEI CANADIAN EQUITY FUND	1,210,601	0.61 %	20100630	137,741
	BMO SPECIAL EQUITY FUND	1,178,500	0.59 %	20100930	246,400
	STANDARD LIFE CANADIAN SMALL CAP FUND	1,128,700	0.57 %	20100630	new

Mercator Takeover Requires Shareholder Approval

* Says plan not in response to takeover offer

* Plan subject to shareholder approval

Feb 9 (Reuters) - Mercator Minerals (ML.TO), which owns the Mineral Park mine in Arizona, said on Wednesday it had adopted a shareholder rights plan to protect against a takeover, but not in response to a specific threat.

"Although it is not aware of any pending or threatened takeover initiatives directed at the company, Mercator's board of directors today approved the adoption of a shareholder rights plan," the company said in a statement.

The poison pill defense is subject to shareholder approval and would be activated in the event of an entity trying to acquire more than 20 percent of the company's stock.

Global commodity prices are booming across the board on strong demand from ravenous markets in Asia, and metal producers are consolidating in a race to own more raw material resources.

Mercator runs the Mineral Park mine and is developing the El Pilar copper project in Mexico.

The Mineral Park mine produced 4.3 million pounds of molybdenum in 2010, as well as 32.2 million pounds of copper. Silver production for the year was 465,736 ounces.

Japan runs up...so will north American stocks

Japan stocks surge after two-day rout

9:12pm EDT

SINGAPORE (Reuters) - Asian financial markets rallied on Wednesday, led by a nearly 6 percent surge in Japanese stocks, after a horrendous two-day sell-off on last week's killer earthquake and an unfolding nuclear crisis.

Other Asian stock markets also opened higher, but analysts warned that news of another fire at the Fukushima Daiichi nuclear plant in the morning and a quake last night in the Shizuoka area near Tokyo would keep investors on edge.

Overnight, U.S. stocks closed down but off lows as a more upbeat view from the Federal Reserve helped limit Japan-related losses. The Fed stuck with its ultra-loose monetary policy but said the economy was gaining traction.

The yen slid to around 81.10 to the dollar, on fears of intervention by the Bank of Japan after the currency surged toward its 1995 historic high of 79.75. Speculators were betting that the Japanese government and companies would liquidate overseas assets to pay for reconstruction.

- Japan's Nikkei average .N225 opened up 1.9 percent and quickly clocked up gains of over 6 percent before slipping back.

- Australian shares were up around 1 percent, led by a relief rally in uranium producers Paladin (PDN.AX: Quote, Profile, Research, Stock Buzz) and Energy Resources of Australia (ERA.AX:Quote, Profile, Research, Stock Buzz), which had sunk on news of Japan's nuclear woes.

- South Korea stocks .KS11 were up 2.1 percent.

- The yen was last at about 81.10 to the dollar, falling from a high around 80.60. The euro was subdued after Moody's downgraded Portugal's ratings by two notches

- Crude prices climbed on after plunging over the Japan crisis and over increasing tensions in Bahrain. U.S. crude was up over $1 at $98.25 per barrel.

- Spot gold was slightly up at $1,399 per ounce, but was yet to significantly recover ground after investors sold off bullion to cover stock market losses.

(Reporting by Raju Gopalakrishnan; Editing by Richard Borsuk)

Canadian economy and the Japanese connection...

As the scale of the tragedy in Japan slowly becomes clear, economists and other analysts say the impact to the Canadian economy is decidedly mixed.

Once Japan begins the long, arduous process of rebuilding homes, factories and shops, demand for Canadian construction goods such as lumber could soar.

Tourism operators in Western Canada, long a popular destination for Japanese travellers, could take a big hit in the short term, as could the Ontario economy because of disruptions in the automaking sector.

In 2009, the most recent data, there were 85,575 Japanese visitors that spent at least one night in B.C. It is estimated they spent $111 million in total.

“In the short term, it's not good for anybody,” said Brian Bethune, chief Canadian economist at U.S.-based economics analysis firm IHS Global Insight.

“There will be decreased imports and exports, supply chain disruptions, and reduced travel.”

It also wreaked havoc with the loonie.

In trading Tuesday, the loonie closed down 1.19 cents (U.S.) at 101.63 cents after going as low as 100.26 cents.

In the medium to longer-term, however, Bethune believes demand for fuel and lumber will be a boost for Canadian commodities suppliers.

The reconstruction of Japan, which some estimates have pegged at over $200 billion, won't just be taking place in the north of the country, the area hardest hit by the earthquake and tsunami, believes Paul Beamish, international business professor at the Richard Ivey School of Business at the University of Western Ontario.

“If you are living in a village down the coast from one of the affected areas, and your home or your business was built the same way with the same materials as the ones which were affected, are you going to feel safe? I don't think so,” said Beamish.

“I think this is going to lead to a complete change in the way things are built there, and that will lead to a huge demand for lumber,” Beamish added. “It's going to help everybody who supplies construction materials. As horrific as a humanitarian catastrophe as this has been, the reconstruction in some ways will be a massive stimulus.”

The head of Canada's main lumber industry group bemoaned the human tragedy unfolding in Japan, but admitted his group's members could benefit.

“We believe we'll be part of the solution to rebuilding Japan. Not the whole solution, because it's going to be a massive effort, but we'll be part of it,” said Avrim Lazar, president and CEO of the Forest Products Association of Canada.

Lazar says the reconstruction will boost the price of softwood lumber on world markets.

“It will definitely boost global prices, but it's still too early to tell by how much,” said Lazar.

Lazar believes wood will be especially popular as Japan seeks to find stronger construction methods. Because it's flexible, it doesn't snap or crumble under tension as easily as other materials as concrete or metal, Lazar explained.

“That's one aspect of our products that has already been of interest in Japan,” said Lazar.

Meanwhile, Toyota has eliminated overtime at its two assembly plants in Cambridge and Woodstock temporarily this week to ease demand for parts from Japanese suppliers. It will allow staff from those Japanese suppliers to assist in disaster relief efforts instead of producing parts.

A spokesman for Honda Canada said the Japanese catastrophe has not affected assembly operations in Alliston, because most of its parts come from North American suppliers. Honda has idled several operations in Japan this week because of the need to conserve energy.

Japanese products such as TVs and radios won't be heavily affected in Canada, said Beamish. “A lot of the Japanese products we buy here now are actually made in third countries like China.”

Tuesday, the Royal Bank of Canada said it is lowering some of its fixed rate mortgages by as much as 0.2 percentage points effective Wednesday, The Canadian Press reports, because investors are jittery over fears a potential nuclear disaster in Japan could severely derail the global economic recovery.

Oil drops below $98 as radiation leak at Japanese nuclear plant spooks investors

Oil prices slumped below US$98 a barrel Tuesday as traders braced for the worst in Japan, where a third explosion in as many days at an earthquake-damaged nuclear plant triggered a radiation leak.

Stock markets, an indicator of investors' outlook on the global economy, fell sharply across the world, dragging energy prices with them.

By early afternoon in Europe, benchmark crude for April delivery was down $3.37 at $97.82 a barrel in electronic trading on the New York Mercantile Exchange. The contract added 3 cents on Monday to settle at $101.19. In London, Brent crude was down $4.58 at $109.09 a barrel on the ICE futures exchange.

The 9.0-magnitude earthquake on Friday and ensuing tsunami have hit demand for oil by shutting down five Japanese refineries — two due to fire. The affected refineries have combined daily capacity of 1.4 million barrels of oil, according to Platts, the energy information arm of McGraw-Hill Cos.

Prime Minister Naoto Kan said Tuesday that radiation that has spread from four reactors of the Fukushima Dai-ichi nuclear plant was enough to "impact human health" and the risk of more leaks was "very high." The plant was initially damaged Friday.

Kan urged anyone within 30 kilometres of the plant, some 140,000 people, to stay indoors or risk getting radiation sickness.

Officials said Tuesday they have detected slightly higher-than-normal radiation levels in Tokyo but insisted there are no health dangers.

Japan's benchmark Nikkei 225 stock average plunged as much as 14 per cent Tuesday before closing down 10.6 per cent after a 6 per cent drop Monday. Leading markets in Europe were down 3 to 5 per cent.

"We're seeing a knee-jerk reaction due to this fresh explosion," said Victor Shum, an analyst with energy consultancy Purvin & Gertz in Singapore. "It's uncertain how much radiation is coming out or could affect Tokyo and that's caused this across-the-board market reaction."

The International Energy Agency's monthly report on the oil market slightly increased its forecast for global oil demand in 2011 — by a daily 90,000 barrels — to 89.4 million barrels a day.

"Persistently high oil prices entail significant downside risks to this year's prognosis," which did not account for the impact of the events in Japan, the IEA said. "Nonetheless, short-term fuel switching within the power sector is likely to be significant, with oil, gas and coil all being used to make up for the loss of its nuclear output."

Some analysts predicted that the immediate dampening effect of the earthquake on Japanese oil demand soon would be reversed.

"While several refineries have been destroyed by the earthquake and tsunami, and the level of crude oil refining is lower accordingly, the demand for diesel for power generation is higher after numerous nuclear power stations have had to be switched off," said a report from Commerzbank in Frankfurt. "Consequently, Japan's demand for oil is more likely to increase than decrease."

The Paris-based IEA also warned that while the conflict in Libya between rebels and forces loyal to Moammar Gadhafi was far from settled, its impact on the country's oil exports could be prolonged.

"What is becoming clearer is that the country's oil production and exports could be off the market for many months due to both war-inflicted damage on oil infrastructure and international sanctions", the IEA report said. It added that Libya's oil exports — which averaged nearly 1.3 million barrels a day in 2010 — had "ground to a halt."

Italy, France, Germany and Spain were Libya's largest purchasers of oil last year, the IEA said.

The market, meanwhile, is also awaiting fresh information on U.S. oil stockpiles.

Data for the week ending March 11 is expected to show a build of 2.1 million barrels in crude oil stocks and a draw of 1.5 million barrels in gasoline stocks, according to a survey of analysts by Platts, the energy information arm of McGraw-Hill Cos.

The American Petroleum Institute will release its report on oil stocks later Tuesday, while the report from the Energy Department's Energy Information Administration — the market benchmark — will be out on Wednesday.

In other Nymex trading for April contracts, heating oil was down 11.11 cents at $2.9527 a gallon and gasoline dropped 13.39 cents to $2.8264 a gallon. Natural gas fell 0.1 cent at $3.904 per 1,000 cubic feet.

___

Alex Kennedy in Singapore contributed to this report.