Oil slightly higher ahead of US energy reserves data
Thursday, 6 August 2009
SINGAPORE, Aug 5 (AFP): Oil was modestly higher in Asian trade today ahead of the release of a widely monitored US government report on the country's energy reserves.
New York's main contract, light sweet crude for September delivery rose 20 cents to 71.62 dollars a barrel.
Brent North Sea crude for September delivery was 28 cents stronger at 74.56 dollars.
"There's been very limited movements in the oil prices," said David Moore, a Sydney-based commodity strategist with the Commonwealth Bank of Australia.
"Oil is basically holding close to the levels it finished last night," he said.
Both contracts had slipped overnight on profit-taking after sharp gains in recent sessions, boosted by hopes of a global economic recovery but expectations of a likely rise in US energy stocks capped sentiment, analysts said.
"Traders are liquidating ahead of inventory data... traders don't want to risk being long if stock reports will be bearish again," said Tom Bentz, an analyst and broker at BNP Paribas Commodity Futures Inc.
A Dow Jones Newswires poll of analysts tipped US oil stocks to rise by 500,000 barrels in the week ended July 31 while gasoline reserves are seen falling by 1.4 million barrels during the same period.
The US Department of Energy is scheduled to release its weekly report later Wednesday. The report is closely monitored by energy watchers because the US economy is the world's largest oil consumer.
Looking ahead, the direction of crude futures prices would be dictated by global economic data especially that of the US economy, analysts said.
The release of July unemployment data on Friday by the US Labor Department is among the key indicators this week, they said.
"To maintain the 70-dollar level, we need more bullish developments that include an unemployment reading that is tepid and inventory levels that don't swell too much," said John Kilduff, senior vice president of energy at broker MF Global.
New York's main contract, light sweet crude for September delivery rose 20 cents to 71.62 dollars a barrel.
Brent North Sea crude for September delivery was 28 cents stronger at 74.56 dollars.
"There's been very limited movements in the oil prices," said David Moore, a Sydney-based commodity strategist with the Commonwealth Bank of Australia.
"Oil is basically holding close to the levels it finished last night," he said.
Both contracts had slipped overnight on profit-taking after sharp gains in recent sessions, boosted by hopes of a global economic recovery but expectations of a likely rise in US energy stocks capped sentiment, analysts said.
"Traders are liquidating ahead of inventory data... traders don't want to risk being long if stock reports will be bearish again," said Tom Bentz, an analyst and broker at BNP Paribas Commodity Futures Inc.
A Dow Jones Newswires poll of analysts tipped US oil stocks to rise by 500,000 barrels in the week ended July 31 while gasoline reserves are seen falling by 1.4 million barrels during the same period.
The US Department of Energy is scheduled to release its weekly report later Wednesday. The report is closely monitored by energy watchers because the US economy is the world's largest oil consumer.
Looking ahead, the direction of crude futures prices would be dictated by global economic data especially that of the US economy, analysts said.
The release of July unemployment data on Friday by the US Labor Department is among the key indicators this week, they said.
"To maintain the 70-dollar level, we need more bullish developments that include an unemployment reading that is tepid and inventory levels that don't swell too much," said John Kilduff, senior vice president of energy at broker MF Global.