Crude prices higher on eve of US energy data, hurricane threats
Thursday, 6 September 2007
SINGAPORE, Sept 5 (AFP): Crude prices rose in Asian trade today ahead of the release of a weekly US energy stockpiles report with traders expecting a drawdown in reserves, dealers said.
Prices were further supported by the threat from the peak September Atlantic hurricane season, they said.
New York's main contract, light sweet crude for October delivery, gained 10 cents to 75.18 US dollars per barrel from 75.08 dollars in late US trades Tuesday.
Brent North Sea crude for October delivery was seven cents higher at 73.99 dollars.
"The reason it is up is because of the statistics," said Tony Nunan, of Mitsubishi Corp's international petroleum business in Tokyo.
"Most people feel there will be a drawdown and we have two back-to- back category five storms," he said, referring to Hurricanes Dean and Felix.
Felix on Tuesday left a trail of devastation in Nicaragua, killing at least four people and destroying 5,000 homes.
Dean, this year's first hurricane, left 30 people dead in its rampage through the Caribbean and Mexico.
Nunan said Dean and Felix reminded the market that September is the Atlantic hurricane season's peak month-and US refineries are vulnerable should a category five storm track in their direction.
The market was also supported by comments from Qatar's energy minister who said Tuesday there were no plans to increase crude oil production at next week's OPEC meeting in Vienna.
"There will be no increase in production as supply and demand are in balance and the market is not suffering from any shortages," Abdullah bin Hamad al-Attiyah said on the sidelines of a conference on gas in Doha.
When asked about calls for the 12-member oil cartel to boost output, Attiyah said OPEC had to be cautious before taking that step.
At its last regular meeting in March, the Organisation of the Petroleum Exporting Countries decided to keep its official production quota at 25.8 million barrels of oil per day.
Prices were further supported by the threat from the peak September Atlantic hurricane season, they said.
New York's main contract, light sweet crude for October delivery, gained 10 cents to 75.18 US dollars per barrel from 75.08 dollars in late US trades Tuesday.
Brent North Sea crude for October delivery was seven cents higher at 73.99 dollars.
"The reason it is up is because of the statistics," said Tony Nunan, of Mitsubishi Corp's international petroleum business in Tokyo.
"Most people feel there will be a drawdown and we have two back-to- back category five storms," he said, referring to Hurricanes Dean and Felix.
Felix on Tuesday left a trail of devastation in Nicaragua, killing at least four people and destroying 5,000 homes.
Dean, this year's first hurricane, left 30 people dead in its rampage through the Caribbean and Mexico.
Nunan said Dean and Felix reminded the market that September is the Atlantic hurricane season's peak month-and US refineries are vulnerable should a category five storm track in their direction.
The market was also supported by comments from Qatar's energy minister who said Tuesday there were no plans to increase crude oil production at next week's OPEC meeting in Vienna.
"There will be no increase in production as supply and demand are in balance and the market is not suffering from any shortages," Abdullah bin Hamad al-Attiyah said on the sidelines of a conference on gas in Doha.
When asked about calls for the 12-member oil cartel to boost output, Attiyah said OPEC had to be cautious before taking that step.
At its last regular meeting in March, the Organisation of the Petroleum Exporting Countries decided to keep its official production quota at 25.8 million barrels of oil per day.