Crude oil rose above $77 a barrel in New York as the dollar weakened, spurring investor demand for commodities to hedge against inflation.
Oil rebounded after losing 2.3 percent yesterday as the U.S. Energy Department reported that crude stockpiles swelled to their highest level since August. The dollar slipped as indications the global economy is recovering stimulated demand for higher-yielding assets.
“The dollar is the single most important factor in the market,” said Eugen Weinberg, senior commodities analyst at Commerzbank AG in Frankfurt. “It’s not the fundamentals. The weaker dollar is a really big concern for many investors and they try to protect themselves by buying into commodities.”
Crude oil for January delivery rose as much as 90 cents, or 1.2 percent, to $77.50 a barrel in electronic trading on the New York Mercantile Exchange. The contract was at $77.18 a barrel at 1:08 p.m. in London. Prices have gained 73 percent this year.
The Organization of Petroleum Exporting Countries, responsible for 40 percent of global oil output, will hold its last meeting of the year in Angola on Dec. 22.
Kuwaiti Oil Minister Sheikh Ahmed al-Abdullah al-Sabah said surplus supply isn’t cutting prices because of speculation and the dollar weakness. He spoke to reporters at Cairo airport today as he arrived for a Dec. 5 meeting of Arab oil ministers.
An Institute for Supply Management index of non- manufacturing businesses, which make up the largest part of the U.S. economy, will rise to 51.5 in November from 50.6 in October, according to a Bloomberg News survey before today’s report. The U.S. currency dropped to $1.5122 per euro at 12:47 p.m. in London, from $1.5044 yesterday in New York. Gold hit a record for a third day, touching $1,226.56 an ounce.
Crude Stockpiles
Commercially held U.S. crude oil inventories rose 2.09 million barrels to 339.9 million, the highest level since August, the Energy Department report showed. Stockpiles were forecast to decline by 400,000 barrels, according to the median estimate from analysts surveyed by Bloomberg News.
Gasoline supplies climbed 4 million barrels to 214.1 million as imports hit a 14-week high, the Energy Department said. Distillate fuel inventories fell 1.17 million barrels to 165.7 million, 29.9 percent above the five-year average level.
“Demand indications for November-to-date remain firm for gasoline, greatly improved for jet, but are still very sluggish for other distillates,” analysts at Barclays Capital, led by Paul Horsnell, said in a report after the Energy Department data.
Total U.S. daily fuel demand averaged 18.5 million barrels in the four weeks ended Nov. 27, down 3.2 percent from a year earlier, the Energy Department said. Consumption slipped by 497,000 barrels a day last week.
China Rising
Rising consumption outside the U.S., particularly in China and India, may push oil prices to an average of $90 a barrel next year, compared with $61 this year, UBS AG’s wealth management group told reporters today in Singapore.
Brent crude oil for January settlement rose as much as $1.03, or 1.3 percent, to $78.91 a barrel on the London-based ICE Futures Europe exchange. The contract was at $78.70 a barrel at 1:09 p.m. in London.
Source
Friday, December 4, 2009
Thursday, December 3, 2009
Crude Oil Declines as Growing Supply Dampens Recovery Outlook
Crude oil fell after an industry report showing an increase in U.S. supplies reinforced speculation that fuel demand will be slow to recover.
The American Petroleum Institute reported that crude inventories rose by 2.89 million barrels last week, while gasoline and distillate fuel stockpiles also climbed. The U.S. Energy Department will release its report today. Ministers from Iran, Nigeria and Kuwait have indicated the Organization of Petroleum Exporting Countries will keep supply quotas unchanged at their Dec. 22 meeting.
“Eighty-dollars is proving a tough nut to crack, and last night’s stats put paid to any further testing of the resistance there,” said Christopher Bellew, senior broker at Bache Commodities Ltd. “There doesn’t seem any shadow of doubt that OPEC will leave quotas unchanged, and that’ll keep prices range- bound until the meeting.”
Crude oil for January delivery declined as much as 82 cents, or 1.1 percent, to $77.55 a barrel in electronic trading on the New York Mercantile Exchange. It traded for $78.06 at 1:08 p.m. London time. Prices have gained 74 percent this year.
Crude gained yesterday after reports yesterday showed signs of increased manufacturing output in the U.S. and China, which account for about 32 percent of global oil consumption.
The U.S. Energy Department will release its weekly supply report today in Washington. Inventories are forecast to decline, according to a Bloomberg News survey.
Energy Department
The Energy Department report is forecast to show that crude inventories fell 450,000 barrels, according to the survey. Oil- supply totals from the API and Energy Department moved in the same direction 75 percent of the time in the past four years, according to data compiled by Bloomberg.
“What is important here is that demand recovery was not as swift as expected, and this is also evident from overhanging crude and product stocks,” said Andrey Kryuchenkov, an analyst with VTB Capital in London. “We do not expect demand from the U.S. to reach pre-crisis levels until well into 2011.”
Inventories of distillate fuels, which include heating oil and diesel, rose 1.06 million barrels to 168 million, the API report showed. The Energy Department will probably say stockpiles fell 350,000 barrels last week, according to the Bloomberg News survey. Supplies are at 166.9 million barrels, the highest since January 1983.
The API collects stockpile information on a voluntary basis from operators of refineries, bulk terminals and pipelines. The government requires that reports be filed with the Energy Department for its weekly survey.
Yachtsmen Released
Five British yachtsmen detained by Iran’s navy in the Persian Gulf last week were released today, state-run media reported. Oil prices dropped about 50 cents a barrel after the news of the release.
Iran’s Revolutionary Guards Corps said questioning of the sailors made it clear they had entered Iranian waters by mistake, the Fars news agency reported.
Brent crude oil for January settlement was at $79.13 a barrel, down 22 cents, on the London-based ICE Futures Europe exchange at 1:10 p.m. London time.
Source
The American Petroleum Institute reported that crude inventories rose by 2.89 million barrels last week, while gasoline and distillate fuel stockpiles also climbed. The U.S. Energy Department will release its report today. Ministers from Iran, Nigeria and Kuwait have indicated the Organization of Petroleum Exporting Countries will keep supply quotas unchanged at their Dec. 22 meeting.
“Eighty-dollars is proving a tough nut to crack, and last night’s stats put paid to any further testing of the resistance there,” said Christopher Bellew, senior broker at Bache Commodities Ltd. “There doesn’t seem any shadow of doubt that OPEC will leave quotas unchanged, and that’ll keep prices range- bound until the meeting.”
Crude oil for January delivery declined as much as 82 cents, or 1.1 percent, to $77.55 a barrel in electronic trading on the New York Mercantile Exchange. It traded for $78.06 at 1:08 p.m. London time. Prices have gained 74 percent this year.
Crude gained yesterday after reports yesterday showed signs of increased manufacturing output in the U.S. and China, which account for about 32 percent of global oil consumption.
The U.S. Energy Department will release its weekly supply report today in Washington. Inventories are forecast to decline, according to a Bloomberg News survey.
Energy Department
The Energy Department report is forecast to show that crude inventories fell 450,000 barrels, according to the survey. Oil- supply totals from the API and Energy Department moved in the same direction 75 percent of the time in the past four years, according to data compiled by Bloomberg.
“What is important here is that demand recovery was not as swift as expected, and this is also evident from overhanging crude and product stocks,” said Andrey Kryuchenkov, an analyst with VTB Capital in London. “We do not expect demand from the U.S. to reach pre-crisis levels until well into 2011.”
Inventories of distillate fuels, which include heating oil and diesel, rose 1.06 million barrels to 168 million, the API report showed. The Energy Department will probably say stockpiles fell 350,000 barrels last week, according to the Bloomberg News survey. Supplies are at 166.9 million barrels, the highest since January 1983.
The API collects stockpile information on a voluntary basis from operators of refineries, bulk terminals and pipelines. The government requires that reports be filed with the Energy Department for its weekly survey.
Yachtsmen Released
Five British yachtsmen detained by Iran’s navy in the Persian Gulf last week were released today, state-run media reported. Oil prices dropped about 50 cents a barrel after the news of the release.
Iran’s Revolutionary Guards Corps said questioning of the sailors made it clear they had entered Iranian waters by mistake, the Fars news agency reported.
Brent crude oil for January settlement was at $79.13 a barrel, down 22 cents, on the London-based ICE Futures Europe exchange at 1:10 p.m. London time.
Source
Wednesday, December 2, 2009
Fundamental Oil Report
Crude oil gained for the second day above $77 a barrel after Dubai's debt woes has eased and ahead of important data due later on today.
Oil prices jumped 1.6% overnight paring previous losses incurred last week after Dubai's news which aroused skeptics with regard recovery. However, the United Arab Emirates pledged to support for banks and Dubai world started discussions to restructure $26 billion of debt which spurred optimism in markets.
U.S. stocks advanced last night and Asian shares gained today on speculations Japan will not allow its currency to appreciate more. In addition, manufacturing improved in China before the release of manufacturing data in the U.S. later in the day. MSCI Asia Pacific Index touched two-weeks high and Nikkei closed on the highest gains in 2 weeks.
On the other hand, the U.S. dollar and Japanese yen slipped today as optimism eroded demand on lower-yielding currencies. The dollar index, a gauge of the dollar movements versus a basket of major currencies, plunged to 75.57 from today's opening at 74.82. The dollar's slid enhanced demand on commodities as an inflation hedge.
Moreover, the American Petroleum Institute will release its weekly report today to show demand on crude inventories in the U.S. last week, where the EIA report will be released tomorrow.
Oil is currently traded at $74.59 recording a high of $75.08 and a low of $74.57, whereas the contract on Monday edged up $1.23 closing at $77.28, while recording a high of $78.00 per barrel and a low of $75.13 per barrel.
Source
Oil prices jumped 1.6% overnight paring previous losses incurred last week after Dubai's news which aroused skeptics with regard recovery. However, the United Arab Emirates pledged to support for banks and Dubai world started discussions to restructure $26 billion of debt which spurred optimism in markets.
U.S. stocks advanced last night and Asian shares gained today on speculations Japan will not allow its currency to appreciate more. In addition, manufacturing improved in China before the release of manufacturing data in the U.S. later in the day. MSCI Asia Pacific Index touched two-weeks high and Nikkei closed on the highest gains in 2 weeks.
On the other hand, the U.S. dollar and Japanese yen slipped today as optimism eroded demand on lower-yielding currencies. The dollar index, a gauge of the dollar movements versus a basket of major currencies, plunged to 75.57 from today's opening at 74.82. The dollar's slid enhanced demand on commodities as an inflation hedge.
Moreover, the American Petroleum Institute will release its weekly report today to show demand on crude inventories in the U.S. last week, where the EIA report will be released tomorrow.
Oil is currently traded at $74.59 recording a high of $75.08 and a low of $74.57, whereas the contract on Monday edged up $1.23 closing at $77.28, while recording a high of $78.00 per barrel and a low of $75.13 per barrel.
Source
Subscribe to:
Posts (Atom)
