Oil prices edge higher as US gasoline worries persist
Sunday, 17 June 2007
NEW YORK, June 16 (AFP): World oil prices edged higher yesterday, after strong gains earlier this week, as the market focused on low US gasoline reserves during a high demand season.
Traders also eyed unrest in the Middle East and Nigeria, analysts said.
New York's main oil futures contract, light sweet crude for delivery in July, rose 35 cents to close at 68.00 dollars per barrel.
In London, Brent North Sea crude for August delivery climbed 51 cents to settle at 71.47 dollars per barrel.
Oil prices this week have gained five per cent in New York and four per cent in London.
Prices had risen Monday after a heavy sell-off the previous week, partly sparked by fears that rising global interest rates could crimp global economic growth-and oil demand.
Crude futures began falling Tuesday as the market awaited the weekly US snapshot on energy reserves, expecting gasoline supplies had raised strongly.
However, oil prices surged higher after the US Department of Energy said gasoline inventories were unchanged at 201.5 million barrels in the week ended June 8, breaking a five-week streak of gains and remaining below levels at this time last year.
The weak US gasoline data has captured traders' attention because of strong domestic demand expected during the summer vacation driving season.
Prices also found support in a decline in US refinery utilization for the second consecutive week.
Traders also were digesting the monthly report by the Organization of the Petroleum Exporting Countries released Thursday. The cartel brushed aside calls from consuming countries that it increases production to contain prices.
Elsewhere, geopolitical concerns underpinned prices amid fresh unrest in the crude-rich Middle East and Nigeria.
Nigeria is the biggest crude producer on the African continent, but unrest has cut the country's production by about 25 per cent.
Traders also eyed unrest in the Middle East and Nigeria, analysts said.
New York's main oil futures contract, light sweet crude for delivery in July, rose 35 cents to close at 68.00 dollars per barrel.
In London, Brent North Sea crude for August delivery climbed 51 cents to settle at 71.47 dollars per barrel.
Oil prices this week have gained five per cent in New York and four per cent in London.
Prices had risen Monday after a heavy sell-off the previous week, partly sparked by fears that rising global interest rates could crimp global economic growth-and oil demand.
Crude futures began falling Tuesday as the market awaited the weekly US snapshot on energy reserves, expecting gasoline supplies had raised strongly.
However, oil prices surged higher after the US Department of Energy said gasoline inventories were unchanged at 201.5 million barrels in the week ended June 8, breaking a five-week streak of gains and remaining below levels at this time last year.
The weak US gasoline data has captured traders' attention because of strong domestic demand expected during the summer vacation driving season.
Prices also found support in a decline in US refinery utilization for the second consecutive week.
Traders also were digesting the monthly report by the Organization of the Petroleum Exporting Countries released Thursday. The cartel brushed aside calls from consuming countries that it increases production to contain prices.
Elsewhere, geopolitical concerns underpinned prices amid fresh unrest in the crude-rich Middle East and Nigeria.
Nigeria is the biggest crude producer on the African continent, but unrest has cut the country's production by about 25 per cent.