Oil prices steady after strong rebound
Friday, 1 August 2008
SINGAPORE, July 31 (AFP): World oil prices steadied in Asian trade today after a rebound of more than four dollars driven by an unexpected decline in US petrol stockpiles, analysts said.
In afternoon trade, New York's main contract, light sweet crude for September delivery, was down eight cents to 126.69 dollars a barrel.
The contract rallied 4.58 dollars to 126.77 at the close of floor trading Wednesday on the New York Mercantile Exchange.
Brent North Sea crude for September delivery was 16 cents lower at 126.94 dollars a barrel following a rally of 4.39 dollars to 127.10 Wednesday in London.
The US Department of Energy (DoE) report on the nation's energy stockpiles-particularly petrol-were the main catalyst for Wednesday's rise in prices, said David Moore, a Commonwealth Bank of Australia analyst in Sydney.
The market "recalibrated" with its sharp movement on Wednesday and nothing had emerged Thursday to move it further, Moore said.
Gasoline or petrol inventories sank by 3.5 million barrels in the week ending July 25, the DoE said. The market had been expecting an increase of 400,000 barrels.
The DoE said crude reserves fell by 100,000 barrels. That was the second consecutive weekly decline, but was far from the analyst forecast for a drop of 1.25 million barrels.
Thierry Lefrancois, an analyst at Natixis, said the "big slide in gasoline was behind this huge move" in prices. Traders fretted about the adequacy of US motor fuel supplies despite reports showing a decline in driving.
Prior to Wednesday's rally, oil prices had dropped more than 17 per cent since touching record highs above 147 dollars a barrel on July 11, driven by slackening demand in the United States.
Despite the draw in petrol stocks, they were still 7.019 million barrels above the five-year average and 8.84 million barrels above levels a year ago, Platts oil analyst Linda Rafield wrote in a report.
The United States reaffirmed a deadline for Iran to give a final answer to world powers seeking a breakthrough in a standoff over Iran's nuclear programme.
Iran, the world's fourth largest crude producer, denies Western claims it is seeking to build atomic weapons.
In afternoon trade, New York's main contract, light sweet crude for September delivery, was down eight cents to 126.69 dollars a barrel.
The contract rallied 4.58 dollars to 126.77 at the close of floor trading Wednesday on the New York Mercantile Exchange.
Brent North Sea crude for September delivery was 16 cents lower at 126.94 dollars a barrel following a rally of 4.39 dollars to 127.10 Wednesday in London.
The US Department of Energy (DoE) report on the nation's energy stockpiles-particularly petrol-were the main catalyst for Wednesday's rise in prices, said David Moore, a Commonwealth Bank of Australia analyst in Sydney.
The market "recalibrated" with its sharp movement on Wednesday and nothing had emerged Thursday to move it further, Moore said.
Gasoline or petrol inventories sank by 3.5 million barrels in the week ending July 25, the DoE said. The market had been expecting an increase of 400,000 barrels.
The DoE said crude reserves fell by 100,000 barrels. That was the second consecutive weekly decline, but was far from the analyst forecast for a drop of 1.25 million barrels.
Thierry Lefrancois, an analyst at Natixis, said the "big slide in gasoline was behind this huge move" in prices. Traders fretted about the adequacy of US motor fuel supplies despite reports showing a decline in driving.
Prior to Wednesday's rally, oil prices had dropped more than 17 per cent since touching record highs above 147 dollars a barrel on July 11, driven by slackening demand in the United States.
Despite the draw in petrol stocks, they were still 7.019 million barrels above the five-year average and 8.84 million barrels above levels a year ago, Platts oil analyst Linda Rafield wrote in a report.
The United States reaffirmed a deadline for Iran to give a final answer to world powers seeking a breakthrough in a standoff over Iran's nuclear programme.
Iran, the world's fourth largest crude producer, denies Western claims it is seeking to build atomic weapons.