Oil prices higher in Asian trade
Tuesday, 19 June 2007
SINGAPORE, June 18 (AFP): Oil prices were slightly higher in Asian trade today as the market continued to focus on US gasoline (petrol) reserves, dealers said.
New York's main contract, light sweet crude for July delivery, was up two cents at 68.02 US dollars a barrel from 68.00 dollars in late US trades Friday. Brent North Sea crude for July added eight cents to 71.55 dollars. The concern whether US refiners are going to be able to meet summer (driving season) demand," said Steve Rowles, an analyst with CFC Seymour in Hong Kong.
"They are still playing out on the data from last week," he said. Oil prices rose last week after figures showed US gasoline reserves were flat 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 caused worry because of strong domestic demand the summer vacation driving season. Prices also found support in a decline in US refinery utilization for the second consecutive week. Rowles however expects prices to taper off this week as the market has shot up quite a fair bit, with US refinery utilisation rates likely to pick up.
"I think that they will be able to increase their utilisation," said Rowles. Meanwhile the situation in Nigeria continues of concern after another rebel attack on oil facilities in the south Sunday. Kidnappings and armed attacks have intensified in Nigeria's oil-rich south since 2006 in which nearly 200 foreigners have been abducted. Most have been released unharmed after a few days or weeks in captivity.
New York's main contract, light sweet crude for July delivery, was up two cents at 68.02 US dollars a barrel from 68.00 dollars in late US trades Friday. Brent North Sea crude for July added eight cents to 71.55 dollars. The concern whether US refiners are going to be able to meet summer (driving season) demand," said Steve Rowles, an analyst with CFC Seymour in Hong Kong.
"They are still playing out on the data from last week," he said. Oil prices rose last week after figures showed US gasoline reserves were flat 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 caused worry because of strong domestic demand the summer vacation driving season. Prices also found support in a decline in US refinery utilization for the second consecutive week. Rowles however expects prices to taper off this week as the market has shot up quite a fair bit, with US refinery utilisation rates likely to pick up.
"I think that they will be able to increase their utilisation," said Rowles. Meanwhile the situation in Nigeria continues of concern after another rebel attack on oil facilities in the south Sunday. Kidnappings and armed attacks have intensified in Nigeria's oil-rich south since 2006 in which nearly 200 foreigners have been abducted. Most have been released unharmed after a few days or weeks in captivity.