Oil prices firmer after US inventory report
Friday, 29 June 2007
SINGAPORE, June 28 (AFP): Oil prices were firmer in Asian trade today after a supportive US energy reserves report, dealers said.
New York's main oil futures contract, light sweet crude for delivery in August, was 15 cents higher at 69.12 dollars a barrel from 68.97 dollars in late US trades Wednesday.
Brent North Sea crude for August was up three cents to 70.56 dollars.
Prices spiked in US trade after the US Department of Energy (DoE) said in its weekly report that gasoline (petrol0 stockpiles fell 700,000 barrels to 202.6 million barrels in the week ending June 22.
That surprised the market, which had expected a gain of 1.0 million barrels.
Gasoline reserves are in focus during the US summer holiday driving season, with next week's July 4 US holiday one of the peak periods.
Prices have also been supported by concerns about refinery utilisation as outages across the United States have created supply problems in the gasoline production process.
"It looks like the US is not out of the woods yet," said Tony Nunan, of Mitsubishi Corp's international petroleum business in Tokyo.
Crude oil inventories rose 1.6 million barrels last week to 350.9 million barrels, ahead of analysts' consensus forecasts for an increase of 1.5 million.
Citigroup analyst Tim Evans described the draws in gasoline, distillates and other products as supportive for prices.
Nunan said crude inventories are at their highest levels in five years but prices have not come off, as might be expected, because the market seems more concerned with geopolitical risks.
The market's big fear, he added, is tensions over Iran, the war in Iraq and unrest in the Palestinian territories.
Iran is the world's fourth-largest oil producer but its refining capacity covers only 60 per cent of its needs.
New York's main oil futures contract, light sweet crude for delivery in August, was 15 cents higher at 69.12 dollars a barrel from 68.97 dollars in late US trades Wednesday.
Brent North Sea crude for August was up three cents to 70.56 dollars.
Prices spiked in US trade after the US Department of Energy (DoE) said in its weekly report that gasoline (petrol0 stockpiles fell 700,000 barrels to 202.6 million barrels in the week ending June 22.
That surprised the market, which had expected a gain of 1.0 million barrels.
Gasoline reserves are in focus during the US summer holiday driving season, with next week's July 4 US holiday one of the peak periods.
Prices have also been supported by concerns about refinery utilisation as outages across the United States have created supply problems in the gasoline production process.
"It looks like the US is not out of the woods yet," said Tony Nunan, of Mitsubishi Corp's international petroleum business in Tokyo.
Crude oil inventories rose 1.6 million barrels last week to 350.9 million barrels, ahead of analysts' consensus forecasts for an increase of 1.5 million.
Citigroup analyst Tim Evans described the draws in gasoline, distillates and other products as supportive for prices.
Nunan said crude inventories are at their highest levels in five years but prices have not come off, as might be expected, because the market seems more concerned with geopolitical risks.
The market's big fear, he added, is tensions over Iran, the war in Iraq and unrest in the Palestinian territories.
Iran is the world's fourth-largest oil producer but its refining capacity covers only 60 per cent of its needs.