Oil prices firmer in Asian trade after US inventories
Friday, 22 June 2007
SINGAPORE, June 21 (AFP): Oil prices were firmer in Asian trade today after strong gains in US inventories helped to offset concerns over a nationwide strike in key producer Nigeria, dealers said.
New York's main oil futures contract, light sweet crude for delivery in August, was up four cents to 68.90 US dollars a barrel, after falling 81 cents to 68.86 dollars in late US trades Wednesday.
Brent North Sea crude for August was up 23 cents at 70.65 dollars.
"Prices are heading on the downside ... gasoline and crude gains was much more than expected, so the market fell because of that," said Tetsu Emori, a chief commodities strategist with Mitsui Bussan Futures.
"We already knew (about) the Nigerian issue, they have lost some of their oil production ... this not fresh news," he said.
The US Department of Energy (DoE) said Wednesday that stockpiles of crude oil grew 6.9 million barrels in the week ended June 15. Most analysts had forecast a drop of 50,000 barrels.
US gasoline (petrol) reserves jumped 1.8 million barrels last week, above forecasts for a rise of 1.2 million barrels
However, gasoline reserves were still 5.2 per cent lower than a year ago and the rate of refinery utilization dropped to 87.6 per cent from 89.2 per cent the prior week.
Gasoline supplies are a key factor at this time of year given peak demand driven by the US summer holiday driving season.
A general strike gripped Nigeria Wednesday, posing the first significant test for the country's new president and putting oil markets on edge over possible disruption to supplies from the world's sixth-largest crude exporter.
The main labour unions launched the strike after the government of President Umaru Yar'Adua, who was sworn in late last month, refused to reverse a 15-per cent hike in the price of gasoline.
New York's main oil futures contract, light sweet crude for delivery in August, was up four cents to 68.90 US dollars a barrel, after falling 81 cents to 68.86 dollars in late US trades Wednesday.
Brent North Sea crude for August was up 23 cents at 70.65 dollars.
"Prices are heading on the downside ... gasoline and crude gains was much more than expected, so the market fell because of that," said Tetsu Emori, a chief commodities strategist with Mitsui Bussan Futures.
"We already knew (about) the Nigerian issue, they have lost some of their oil production ... this not fresh news," he said.
The US Department of Energy (DoE) said Wednesday that stockpiles of crude oil grew 6.9 million barrels in the week ended June 15. Most analysts had forecast a drop of 50,000 barrels.
US gasoline (petrol) reserves jumped 1.8 million barrels last week, above forecasts for a rise of 1.2 million barrels
However, gasoline reserves were still 5.2 per cent lower than a year ago and the rate of refinery utilization dropped to 87.6 per cent from 89.2 per cent the prior week.
Gasoline supplies are a key factor at this time of year given peak demand driven by the US summer holiday driving season.
A general strike gripped Nigeria Wednesday, posing the first significant test for the country's new president and putting oil markets on edge over possible disruption to supplies from the world's sixth-largest crude exporter.
The main labour unions launched the strike after the government of President Umaru Yar'Adua, who was sworn in late last month, refused to reverse a 15-per cent hike in the price of gasoline.