Oil prices little changed on eve of US energy reserves report
Wednesday, 18 July 2007
SINGAPORE, July 17 (AFP): Oil prices were little changed at near record highs in Asian trade today as the market waited for the release of a weekly US report on energy stockpiles, dealers said.
New York's main contract, light sweet crude for August delivery, was four cents higher at 74.19 US dollars a barrel from 74.15 dollars in late US trades Monday.
Brent North Sea crude for September was two cents higher at 76.31 dollars.
Oil prices are expected to remain well bid as supply concerns continue to be a key factor for the market amid robust demand, dealers said.
"I think that the key factor will be overall demand because demand has been heating up," said Steve Rowles, an analyst with CFC Seymour in Hong Kong.
Oil has rallied strongly since last week after the International Energy Agency raised its 2008 forecast oil demand by 2.5 per cent to 88.2 million barrels a day.
The US Department of Energy (DoE) is due to release Wednesday its weekly report on the country's energy reserves and Rowles expects gasoline (petrol) stockpiles to show another increase.
The DoE said last week that gasoline reserves climbed 1.2 million barrels in the week ending July 6, beating forecasts of a gain of 825,000, but they were still 3.8 per cent lower than a year earlier.
The market continues to focus on tight US supplies of gasoline during the peak-demand driving season, when many Americans take to the roads for their summer holidays.
Unrest in Nigeria, the largest producer in Africa, is also bolstering oil prices, dealers said.
New York's main contract, light sweet crude for August delivery, was four cents higher at 74.19 US dollars a barrel from 74.15 dollars in late US trades Monday.
Brent North Sea crude for September was two cents higher at 76.31 dollars.
Oil prices are expected to remain well bid as supply concerns continue to be a key factor for the market amid robust demand, dealers said.
"I think that the key factor will be overall demand because demand has been heating up," said Steve Rowles, an analyst with CFC Seymour in Hong Kong.
Oil has rallied strongly since last week after the International Energy Agency raised its 2008 forecast oil demand by 2.5 per cent to 88.2 million barrels a day.
The US Department of Energy (DoE) is due to release Wednesday its weekly report on the country's energy reserves and Rowles expects gasoline (petrol) stockpiles to show another increase.
The DoE said last week that gasoline reserves climbed 1.2 million barrels in the week ending July 6, beating forecasts of a gain of 825,000, but they were still 3.8 per cent lower than a year earlier.
The market continues to focus on tight US supplies of gasoline during the peak-demand driving season, when many Americans take to the roads for their summer holidays.
Unrest in Nigeria, the largest producer in Africa, is also bolstering oil prices, dealers said.