Oil prices lower on expectations of rise in US energy reserves
Thursday, 28 June 2007
SINGAPORE, June 27 (AFP): Oil prices weakened in Asian trade today as the market waited for the weekly US energy report where expectations are for a further rise in petroleum reserves, dealers said.
New York's main contract, light sweet crude for August delivery, was down nine cents to 67.68 US dollars a barrel from its close of 67.77 dollars in late US trades Tuesday.
Brent North Sea crude for August eased seven cents to 70.10 dollars.
"People are expecting an increase in inventory so traders are taking profits," said Tetsu Emori, chief commodities strategist with Mitsui Bussan Futures in Tokyo.
"For crude oil and gasoline (petrol), they are expecting a rise," he said.
The US Department of Energy (DoE) is due to release its weekly report later Wednesday with crude and gasoline reserves the main items closely watched by the market.
Gasoline reserves are in focus amid the current US summer driving season where demand typically peaks with many Americans taking to the roads for their vacation.
Oil prices were also dampened by news that US energy giant Chevron has resumed operations at its facility in southern Nigeria that was shut down two weeks ago because of community unrest.
"We have restored output of 42,000 barrels of crude per day at the Abiteye flowstation," a company spokesman told the news agency.
Around 20 youths occupied the facility, capable of producing 70,000 barrels per day (bpd), on June 17.
Chevron is Nigeria's third-largest operator, accounting for some 360,000 bpd of the country's total output of 2.6 million barrels, a quarter of which has been lost to unrest in the Niger delta.
New York's main contract, light sweet crude for August delivery, was down nine cents to 67.68 US dollars a barrel from its close of 67.77 dollars in late US trades Tuesday.
Brent North Sea crude for August eased seven cents to 70.10 dollars.
"People are expecting an increase in inventory so traders are taking profits," said Tetsu Emori, chief commodities strategist with Mitsui Bussan Futures in Tokyo.
"For crude oil and gasoline (petrol), they are expecting a rise," he said.
The US Department of Energy (DoE) is due to release its weekly report later Wednesday with crude and gasoline reserves the main items closely watched by the market.
Gasoline reserves are in focus amid the current US summer driving season where demand typically peaks with many Americans taking to the roads for their vacation.
Oil prices were also dampened by news that US energy giant Chevron has resumed operations at its facility in southern Nigeria that was shut down two weeks ago because of community unrest.
"We have restored output of 42,000 barrels of crude per day at the Abiteye flowstation," a company spokesman told the news agency.
Around 20 youths occupied the facility, capable of producing 70,000 barrels per day (bpd), on June 17.
Chevron is Nigeria's third-largest operator, accounting for some 360,000 bpd of the country's total output of 2.6 million barrels, a quarter of which has been lost to unrest in the Niger delta.