Oil prices firmer ahead of US stockpiles report
Thursday, 7 June 2007
SINGAPORE, June 6 (AFP): Oil prices were firmer in Asian trade today ahead of the release of US stockpile figures, dealers said.
New York's main contract, light sweet crude for July delivery, was 25 cents higher at 65.86 US dollars a barrel from 65.61 dollars in late US trades Tuesday where it had dropped 70 cents.
Brent North Sea crude for July rose 32 cents to 70.77 dollars.
The US Department of Energy (DoE) is due later Wednesday to release its weekly snapshot of the country's oil reserves with gasoline (petrol) stocks keenly watched because of the summer driving season.
Analysts are expecting a jump in gasoline reserves but fairly strong demand is keeping the market firm.
"Surveys show that analysts expect the report to show a further build in US gasoline stocks," the Commonwealth Bank of Australia said.
US gasoline stocks have increased for the past three weeks but still remain lower than last year, increasing fears that demand may outstrip supply as the peak-demand summer driving season gets underway.
The DoE in its last report said said gasoline stockpiles rose 1.3 million barrels in the week ended May 25, against market expectations for an increase of 1.5 million.
Elsewhere, the situation in key crude producer Nigeria continues to be a worry for the market as oil production has been disrupted by the civil unrest, dealers said.
"There remain concerns over the stability of oil supplies from Nigeria," said the Commonwealth Bank of Australia.
Kidnappings have become commonplace in the Niger Delta in the past 18 months with around 180 foreigners, most of them linked to the oil industry, taken since the beginning of 2006. Most of them have been released unharmed.
Recent unrest in Nigeria has reduced oil output in Africa's biggest producer by about 25 per cent.
New York's main contract, light sweet crude for July delivery, was 25 cents higher at 65.86 US dollars a barrel from 65.61 dollars in late US trades Tuesday where it had dropped 70 cents.
Brent North Sea crude for July rose 32 cents to 70.77 dollars.
The US Department of Energy (DoE) is due later Wednesday to release its weekly snapshot of the country's oil reserves with gasoline (petrol) stocks keenly watched because of the summer driving season.
Analysts are expecting a jump in gasoline reserves but fairly strong demand is keeping the market firm.
"Surveys show that analysts expect the report to show a further build in US gasoline stocks," the Commonwealth Bank of Australia said.
US gasoline stocks have increased for the past three weeks but still remain lower than last year, increasing fears that demand may outstrip supply as the peak-demand summer driving season gets underway.
The DoE in its last report said said gasoline stockpiles rose 1.3 million barrels in the week ended May 25, against market expectations for an increase of 1.5 million.
Elsewhere, the situation in key crude producer Nigeria continues to be a worry for the market as oil production has been disrupted by the civil unrest, dealers said.
"There remain concerns over the stability of oil supplies from Nigeria," said the Commonwealth Bank of Australia.
Kidnappings have become commonplace in the Niger Delta in the past 18 months with around 180 foreigners, most of them linked to the oil industry, taken since the beginning of 2006. Most of them have been released unharmed.
Recent unrest in Nigeria has reduced oil output in Africa's biggest producer by about 25 per cent.