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Nov-05-2009Oil Snaps Three Days of Gains on Signs Demand Is Yet to Recover(topic overview)
CONTENTS:
- Crude oil futures scaled back gains after rising above $81 a barrel midmorning when U.S. Energy Information Administration data showed an unexpected big drop in crude stocks last week, which confirmed industry data released late on Tuesday. (More...)
- Buoyed by outside influences, oil prices were also driven by the release of bullish industry data. (More...)
- "Crude tested support at $76.50 area and held. (More...)
- Crude oil for December contract fell by 0.24 per cent to Rs 3,770 per barrel with an open interest in 1,791 lots and delivery in November contract shed 0.21 per cent at Rs 3,741 per barrel with an open interest in 14,607 lots. (More...)
- Refinery demand for crude oil, known as "crude runs," dropped by 233,000 bpd to 13.97 million bpd as refinery utilization fell 1.2 percentage point to 80.6 percent of capacity, counter to expectations of a 0.1 percentage point rise. (More...)
- Earlier Tuesday, it rose as high as $78.46 as investors welcomed new U.S. manufacturing and construction figures as positive signs of an economic recovery. (More...)
- Natural gas for December fell 19.7 cents to settle at $4.725 per 1,000 cubic feet. (More...)
- Late-session trading was choppy, and at one point crude futures gave up earlier gains as Wall Street sold off after rallying in the morning on the upbeat economic data. (More...)
- The NYMEX three-month roll remained essentially flat, averaging $1.79 a barrel versus $1.81 last week. (More...)
- Oil had earlier followed gold's lead as the precious metal soared to new record highs Tuesday above 1,080 dollars an ounce after the International Monetary Fund said it sold 200 tonnes of gold to India for 6.7 billion dollars. (More...)
- In the early going, crude futures rose after HSBC's China Purchasing Managers' Index rose to an 18-month high in October of 55.4 from 55.0 in September. (More...)
- World stocks hit a four-week low, helping boost the dollar as poor results from UBS UBSN.VS and a shake-up of UK banks Lloyds ( LLOY.L ) and Royal Bank of Scotland ( RBS.L ) prompted investors to cut back on risk. (More...)
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Crude oil futures scaled back gains after rising above $81 a barrel midmorning when U.S. Energy Information Administration data showed an unexpected big drop in crude stocks last week, which confirmed industry data released late on Tuesday. The Federal Reserve expressed growing confidence that a U.S. economic recovery was building, even though it stuck to its commitment to keep borrowing costs near zero for "an extended period." "It was no surprise and nothing in the statement makes me think policy changes are imminent, said Mike Fitzpatrick, vice president at MF Global in New York. [1] Global equities slip, Wall Street weaker at the open NEW YORK, Nov 3 (Reuters) - U.S. crude oil futures fell on Tuesday as a stronger dollar, weaker equities and caution ahead of oil inventory data and a Federal Reserve meeting combined to pressure oil. "With the dollar strengthening appreciably this morning, especially against the euro, the energy complex is in process of relinquishing yesterday's gains," Jim Ritterbusch, president at Ritterbusch & Associates, said in a research note.[2] NEW YORK, Nov 4 (Reuters) - U.S. crude oil futures ended up on Wednesday, though well below the day's highs, buoyed by an optimistic economic outlook from the Federal Reserve and a surprise weekly drawdown in crude inventories.[1]
NEW YORK (CNNMoney.com) -- Oil prices stayed above $80 a barrel Wednesday as a government report showed a surprise drop in crude inventory. Crude held onto those gains after the Federal Reserve said it would hold a key interest rate near zero. The Federal Reserve said it will hold its benchmark rate at historic lows near 0%, although "economic activity has continued to pick up."[3] NEW YORK (Dow Jones)--Crude futures pushed above $80 a barrel Wednesday ahead of oil inventory data and a Federal Reserve meeting in which the Fed is widely expected to maintain its support for a low interest rate policy.[4]
Crude futures rose 77 cents to close the New York Mercantile Exchange trading day at $80.37 a barrel, the first closing-day price over $80 since Oct. 23. Futures touched $81.06, the highest intraday price since Oct. 26, and oil has risen 80% this year, Bloomberg reported.[5] On the New York Mercantile Exchange at 9:42 a.m. EST (1442 GMT), December crude CLZ9 was up 40 cents, or 0.5 percent, at $80 a barrel, trading from $79.12 to $80.76.[6] By mid-afternoon in Europe, benchmark crude for December delivery was up 75 cents to $80.35 a barrel in electronic trading on the New York Mercantile Exchange.[7]
Light, sweet crude for December delivery rose 1.47 dollars, or 1.9 percent, to settle at 79.60 dollars a barrel on the New York Mercantile Exchange. Oil gained mainly on hopes that energy demand will be finally picked up as global economy rebounds from the worst recession after the World War II. Strong manufacturing data from both the United States and China, top two energy consuming countries, drove crude up 1.5 percent on Monday.[8] Light, sweet crude for December delivery recently traded 70 cents, or 0.9%, higher at $80.30 a barrel on the New York Mercantile Exchange.[4] On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $79.33 a barrel at 0625 GMT, down 27 cents in the Globex electronic session.[9]
After that report, benchmark crude prices rose $1.34 to $78.21 per barrel on the New York Mercantile Exchange.[10] On the New York Mercantile Exchange, December crude CLZ9 settled up $1.13, or 1.47 percent, at $78.13 a barrel, trading from $76.56 to $78.66.[11] On the New York Mercantile Exchange, at 11:33 a.m. EST (1633 GMT), December crude CLZ9 was unchanged at $78.13 a barrel, in choppy trading from $76.55 to $78.46.[12] On the New York Mercantile Exchange at 5 p.m. EST (2200 GMT) December crude CLZ9 was up $1.24, or 1.59 percent, at $79.37. It was trading at $79.39 just before the API data was released. It earlier settled up $1.47, or 1.88 percent at $79.60, trading from $76.55 to $79.77.[13]
With minutes of trading to go, New York's main contract, light sweet crude for December delivery had gained $US1.04 to $US78.04 a barrel.[14] Brent North Sea crude for December delivery shed 73 cents to $75.82 per barrel. Traders took their cue from the strengthening greenback, which makes dollar-priced crude more expensive for buyers holding foreign currencies, dampening oil demand.In late morning London deals, the European single currency hit a one-month low of $1.4636 as compared with $1.4772 late in New York on Monday.[15]
LONDON, Nov 4 (Reuters) - Oil rose towards $81 a barrel on Wednesday, extending the previous session's gain, after a U.S. government report showed a surprise decline in crude stocks in the world's largest consumer. The U.S. Energy Information Administration said in its report released at 1530 GMT that crude stocks fell by 4 million barrels in the latest week.[16] Crude oil futures rose above $81 a barrel on Wednesday after the U.S. government Energy Information Administration (EIA) data showed a big drop of 4 million barrels, in the week to October 30, versus analysts' expectations for an increase.[17] Crude stocks were seen falling 3.3 million barrels while analysts had expected a rise of 1.3 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos. The Energy Information Administration, is scheduled to release its supply data — considered the market benchmark — later on Wednesday. Crude has fallen from its 2009 high of $82 a barrel last month on investor doubts about the strength of the U.S. economy.[7] An expanded Reuters poll of analysts forecast a 1.4 million barrel build in crude inventories, a 1.0 million barrel decline in distillate stocks, and a 300,000 barrel increase in gasoline supplies. The U.S. Energy Information Administration will release its own data on Wednesday, at 10:30 a.m. EST (1530 GMT).[13] Wednesday'''s gains came after data from the U.S. Energy Information Administration showed crude inventories declined by 4 million barrels in the world'''s biggest consumer last week, countering analyst expectations for an increase.[18]
"When oil gets close to the 80-dollar level and the market tends to focus more on the high inventories of crude oil and fuel globally, it is difficult to surge through 80 dollars and sustain above the 80-dollar level," Shum said. "The market will also look at the U.S. government inventory report coming out later today," he said. A Dow Jones Newswires poll of analysts expect U.S. crude reserves to have risen 1.4 million barrels in the past week when the Department of Energy releases its widely monitored inventory report later Wednesday.[19] SINGAPORE (Reuters) - Oil fell below $80 a barrel on Thursday, after a steep decline in U.S. crude inventories sent prices up 1 percent the previous day, as traders look to the fall in equities markets to take profits despite the weak dollar. The U.S. dollar was moving toward recent multi-month lows on a basket of currencies on Thursday, after the U.S. Federal Reserve reiterated its commitment to keep rates low for months to come, but this did not help to lift oil.[17] The dollar'''s strength is also widely seen as a proxy for investors''' appetite for risk, rising when investors seek safer assets. U.S. crude futures rose to their highest level this year at 82 dollars per barrel on Oct. 21. They have fallen back as investors question whether rising prices are justified amid a slow economic recovery. The U.S. Federal Reserve starts its two-day meeting later on Tuesday and is expected to keep interest rates unchanged near historic lows.[20] The British pound also rose, to $1.6528 from $1.6402. Later in the day, markets will be watching the Federal Reserve's assessment of the U.S. economy after its meeting on interest rates, which are expected to be left unchanged near zero. "This might provide an interesting signal regarding economic prospects of the world's largest oil consuming nation and it will be of even more interest as it impacts the U.S. dollar," said analysts at Sucden Financial Reserach in London.[7]
New orders received by U.S. factories rose 0.9 percent in September, stronger than expected, while inventories continued to shrink, the Commerce Department said. The U.S. Federal Reserve began a two-day meeting on Tuesday that was expected to end with a reaffirmation that policies to support the economy, such as holding interest rates where they are, will stay in place for some time, even as signs of recovery mount.[13]
Wall Street rose broadly on economic data showing the services sector grew in October while U.S. companies cut jobs last month at the slowest pace in a year, ahead of a Federal Reserve statement on interest rates and the economy.[21] The Federal Reserve'''s Open Market Committee expressed confidence that a U.S. economic recovery was building -- which could spur more demand for crude -- but it stuck to an earlier commitment to keep interest rates near zero for '''an extended period''' to help usher the economy out of recession.[18]
Andy Lipow at Lipow Oil Associates said the inventory data "was a very big surprise to the market and that coupled with a weaker dollar contributed to the market rallying." He said the Federal Reserve announcement later in the day - keeping near-zero interest rates with no hint of a change in policy - also buoyed sentiment. "The perception is that as the economy grows, people have more money in their pocket, they can spend more money that translates into higher petroleum demand," he said.[22]
Since oil is largely bought and sold in dollars, investors holding stronger currencies can buy more crude for less and have done so in recent months, sending the price of benchmark crude above $80 near the end of October. Though the central bank isn't expected to take any action on interest rates, statements issued after such meetings can hint at the Fed's take on the state of the economy.[23] Oil prices rose to above $80 a barrel Wednesday, helped by the weaker dollar and a report pointing to a drop in U.S. crude supplies.[7] The Dollar has been weak for quite a few months now and that has contributed to the rise in crude oil prices, which are now at $80 per barrel, compared to around $40 six months ago.[24]
Crude oil prices have fallen from a high of $82 per barrel last month as investors remained concerned about the demand picture.[25]
Crude oil for December delivery rose 80 cents, or 1.01%, and settled at $80.40 a barrel. That extended the previous day's almost 2% advance, as investors dug into riskier assets on the dollar's weakness.[3] In London, Brent Crude for December delivery added 78 cents to settle at 78.89 dollars a barrel on the ICE Futures exchange.[26] In London, Brent crude for December delivery fell 88 cents to $75.67 on the ICE Futures exchange. Associated Press writer Alex Kennedy in Singapore contributed to this report.[27]
Brent crude on the ICE futures exchange traded 58 cents higher at $78.69 a barrel.[4]
At 1130 GMT, the front-month December Brent contract on London's ICE futures exchange was down 83 cents at $75.72 a barrel.[28]
NYMEX Contracts U.S. Crude DEC9 $79.32 -0.28 +$1.47 +1.88% $77.19 Heat Oil DEC9 205.95 -1.38 +2.73 +1.33% 199.52 RBOB DEC9 198.79 -1.25 +1.01 +0.51% 194.21 Natgas DEC9 $4.910 -0.012 +$0.098 +2.03% $4.792 ICE Contracts Brent DEC9 -- +0.00 +$1.56 +2.04% $75.37 Gasoil NOV9 -- +0.00 -$2.00 -0.32% $617.88 Note: U.S. heating oil and RBOB gasoline contracts listed in cents per gallon.[29] TOKYO, Nov 4 (Reuters) - U.S. crude futures fell for the first time in three days on Wednesday toward $79 a barrel, paring a 1.9 percent gain a day earlier, after industry data showed a larger than expected build in U.S. gasoline inventories and a surprise build in distillate supplies.[29] NEW YORK, Nov 3 (Reuters) - U.S. crude oil futures were little changed in post-settlement trading on Tuesday after industry data showed a surprise drawdown in domestic crude stocks last week.[13] NEW YORK, Nov 4 (Reuters) - U.S. crude oil futures scaled back gains on Wednesday, despite government data showing a surprisingly large drawdown in domestic crude stocks last week, which confirmed industry data released late on Tuesday.[21]
NEW YORK, Nov 4 (Reuters) - U.S. crude oil futures edged up on Wednesday on the weaker dollar and a slump in crude oil inventories reported by industry ahead of the government's weekly inventory report.[6] U.S. factory orders up more than expected in September NEW YORK, Nov 3 (Reuters) - U.S. crude oil futures seesawed near unchanged on Tuesday, as the dollar's strength and an equities slip provided pressure that limited any lift for oil from a report of improved factory orders.[12] NEW YORK, Nov 3 (Reuters) - U.S. crude futures rose on Tuesday after seesawing, bouncing off technical support as stronger than expected factory order data and a rally in gold helped boost oil despite the dollar's strength and weak equities. "It's a technical rally.[30]
NEW YORK, Nov 2 (Reuters) - U.S. crude oil futures bounced higher on Monday after seesawing earlier, lifted by supportive data for the economies of the United States and China.[31] NEW YORK, Nov 2 (Reuters) - U.S. crude oil futures rebounded on Monday as a trio of economic reports on domestic manufacturing, construction and pending home sales showed that the economy continues to recover from recession.[11]
NEW YORK — Oil prices increased Wednesday ahead of a government report on U.S. crude supplies as the dollar tumbled and an independent report said the economy shed fewer jobs in October than September.[32] NEW YORK: Oil prices jumped on Wednesday, pushing above 80 dollars in New York, as traders digested data showing sliding crude stockpiles in the United States, a possible sign of firming economic conditions.[22]
Adding to expectations that industrial demand may soon recover was news that U.S.investor Warren Buffett'''s Berkshire Hathaway has plans to buy railroad company Burlington Northern Santa Fe for 26 billion dollars. This is the company'''s largest-ever acquisition. Energy traders have been looking to wider economic data and equities markets this year for signs of a turnaround in the economy that could raise oil demand. OPEC member Venezuela, however, said Tuesday it saw no need for the group which pumps a third of the world'''s oil to raise crude output when its ministers meet in December. Some OPEC members have signaled they may call for OPEC to produce more crude if global crude stocks fall and prices rise.[20] According to Shum, crude prices are unlikely to hold above the 80 dollars level due to investor concerns about energy demand amid mixed signals on the state of the global economy, in particular the U.S., the world's top oil user.[19] Purvin and Gertz analyst Victor Shum said crude prices were unlikely to hold above the 80 dollars level owing to investor concerns about weak energy demand amid mixed signals on the state of the global economy.[33]
Buoyed by outside influences, oil prices were also driven by the release of bullish industry data. Ahead of this morning's definitive inventory report by the U.S. Energy Department, a survey conducted by the American Petroleum Institute anticipated domestic crude stockpiles falling by 3.4 million barrels. [34] NEW YORK — Crude inventories fell last week, along with declining gasoline supplies, the government said Wednesday. Crude inventories fell by 4 million barrels, or 1.2 percent, to 335.9 million barrels, which is 7.6 percent above year-ago levels, the Energy Department's Energy Information Administration said in its weekly report.[35] Crude oil inventories fell by 4 million barrels and gasoline stockpiles dropped 300,000 barrels for the week ended October 30th, according to the Energy Information Administration.[25] According to the U.S. Energy Department's Energy Information Administration (EIA), crude stockpiles dropped by 4.0 million barrels for the week ended October 30 while gasoline inventories dropped by 0.3 million barrels, surprising most analysts who had expected for a rise.[26] The Energy Information Administration said Wednesday that crude stocks fell 4 million barrels while analysts had expected a rise of 1.3 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.[36] Analysts expected a rise of 1.3 million barrels in crude stocks, according to a consensus estimate collected by energy information provider Platts.[3]
Commercial crude oil stocks in the United States fell by 4 million barrels to 335.9 million barrels in the week to Oct. 30, surprising analysts who, on average, had expected them to post a rise of 1.4 million barrels.[37] Industry group the American Petroleum Institute said late on Tuesday that U.S. crude oil stocks fell 3.3 million barrels as imports dropped in the week to October 30, versus expectations for a 1.4 million-barrel rise.[38] The American Petroleum Institute on Tuesday said U.S. crude oil inventories fell 3.3 million barrels last week, against expectations for a supply build.[6]
The data also showed U.S. crude stocks fell by 3.3 million barrels, against forecasts for a 1.4 million barrel build in a Reuters poll.[29] A Reuters poll ahead of weekly inventory data showed forecasts for a 1.5 million barrel increase in crude stocks, a 500,000 barrel decline in distillate supplies and a 300,000 barrel build in gasoline stocks.[11] A Reuters survey of analysts on Monday yielded a forecast for crude stocks to have risen 1.5 million barrels last week and for distillate supply to have slipped 500,000 barrels and gasoline stocks to have risen 300,000 barrels.[2]
The American Petroleum Institute said that for the week ending Oct. 30, crude stockpiles fell by 3.3 million barrels, gasoline stocks rose by 501,000 barrels and distillate supplies increased by 1.8 million barrels.[13] Last Wednesday, the EIA said for the week ended Oct. 23 crude inventories rose 800,000 barrels to 339.9 million barrels; gasoline inventories rose by 1.7 million barrels to 208.6 million barrels; and distillate inventories fell 2.1 million barrels to 167.8 million barrels.[10]
DOE said Wednesday that oil inventories fell 3.9 million barrels last week, a bigger drop than the 1.5 million decline forecast by analysts, Bloomberg said. Gasoline and distillate fuel stockpiles also fell for the week ended Saturday, with gas dropping 300,000 barrels and distillates, which include diesel and heating oil, declining by 400,000 barrels, DOE said in its weekly report.[5]
The news sparked a rally in crude oil to over $80 a barrel, as well as a jump in gasoline prices, as many analysts had been expecting a modest gain in inventories for the week.[25] Market analysts said weak trend overseas despite drop in U.S. crude inventories mainly put pressure on the crude oil prices in domestic futures trading in New Delhi.[39] The release marks the first decline in four weeks for crude stockpiles, while traders have returned to buying the commodity following a recent dip below $77. Ultimately this bodes well for exporting nations and the Canadian "Loonie" has strengthened 250 pips to 1.06 from a recent low of 1.085. Looking ahead, the Wall Street Journal reported news that the IEA may slash heavily its long-term forecast for oil. While this has implications for the future of the commodity, action for the remainder of the trading session and week will largely be guided by the Federal Reserve and other Central Bank Meetings and the resulting consequences they may have on the greenback.[40] Crude futures earlier settled higher, lifted by data showing rising factory orders, a rally in gold futures and firm technical support. Traders said the oil markets veered away from influence that they usually get from Wall Street, which was mixed in late trading, and the U.S. dollar, which hit a one-month high against a basket of currencies.[13]
U.S. December crude futures CLZ9 were up $1.16, or 1.46 percent, at $80.76 per barrel, leading NYMEX energy complex gains after the EIA data.[37] Front-month crude rose above $81 a barrel in a knee-jerk reaction to the data from the U.S. Energy Information Administration.[21] Crude imports were off 156,000 barrels per day at 8.27 million bpd. "API says imports were down, but most everybody was expecting these to be up. Perhaps prices won't move much on this data and traders will prefer to wait for the DOE numbers tomorrow," said Phil Flynn, analyst at PFGBest Research in Chicago. On Wednesday at 10.30 a.m. EST, the U.S. Energy Information Administration, an arm of the U.S. Department of Energy, will release its weekly inventory figures.[41] Russia remains the world's top oil producer, posting a new post-Soviet high of more than 10 million barrels per day of crude in October, Energy Ministry data said.[31] Crude imports fell by 764,000 barrels per day (bpd) at 8.13 million bpd. In its own weekly data on Tuesday, the American Petroleum Institute (API), a trade group, said domestic crude oil inventories fell 3.3 million barrels last week as imports dropped.[37]
NEW YORK, Nov 3 (Reuters) - U.S. crude oil inventories fell unexpectedly last week, while product inventories rose, according to weekly data from the American Petroleum Institute issued on Tuesday.[41] NEW YORK, Nov. 4 (Xinhua) -- Crude prices settled above 80 U.S. dollars a barrel on Wednesday as crude inventories dropped and the dollar weakened against a basket of currencies.[26] NEW YORK, Nov. 3 (Xinhua) -- Crude prices rose on Tuesday as investors weighed economic recovery outlook against strengthening U.S. dollar.[8] NEW YORK (Dow Jones)--Crude futures rose above $79 a barrel Tuesday after upbeat U.S. factory orders renewed confidence in the economy amid a general spurt of investor buying across the board in commodities.[42] NEW YORK (Dow Jones)--Crude futures climbed above $79 a barrel Tuesday, erasing earlier losses after a rise in U.S. factory orders lent weight to hopes that an economic upturn will lift oil consumption and amid a buying spurt across the commodity spectrum.[43]
NEW YORK (Dow Jones)--Crude futures rose Wednesday on a U.S. government report showing across-the-board declines in oil and fuel inventories.[44] The U.S. manufacturing sector grew in October for the third month in a row, and at a faster clip than was expected, a report from the Institute for Supply Management showed. Pending sales of previously owned homes unexpectedly rose in September to their highest level in nearly three years, before a tax credit for first-time buyers expired. U.S. construction spending made its largest gain in a year in September, helped by a record pace in public construction and the biggest rise in private residential building in more than six years, the Commerce Department said. "This suggested that domestic demand was growing rapidly, which augurs well for energy demand growth in the world's second largest consumer of oil," said Mike Fitzpatrick, vice president at MF Global in New York.[11] Oil rose to 79 dollars a'' barrel after data showed U.S. factory orders in September expanded at a quicker pace than expected. This showed potential for more fuel demand in the world'''s biggest energy consumer.[20] Oil prices rose more than one dollar a barrel Monday, buoyed by a weaker dollar and positive U.S. and Chinese economic data that bolstered hopes of stronger demand in the two biggest energy-consuming nations.[45] SINGAPORE — Oil prices dipped below $80 a barrel Thursday in Asia as the U.S. dollar strengthened.[36] Oil prices fell to near $77 a barrel Tuesday, affected by sagging equity markets and the dollar's gains on the euro.[27]
Gas prices hit a new 2009 high last week, and gas stations charged an average of $2.68 a gallon on Wednesday. That is 22.3 cents more expensive than last month, according to auto club AAA, Wright Express and Oil Price Information Service. On Wednesday the EIA said refiners cut operations even further, and every day last week they bought 233,000 fewer barrels of oil than last year.[46] The average price for a gallon of regular gasoline fell a half penny overnight to $2.686, according to auto club AAA, Wright Express and Oil Price Information Service. That's 22.5 cents more than a month ago, and 27.1 cents more than gas cost at this time last year.[23] At the pump, retail gasoline prices slid overnight by less than a penny to $2.684 per gallon, according to auto club AAA, Wright Express and Oil Price Information Service.[32]
STAFF WRITER 1:59 HRS IST London, Nov 4 (AFP) World oil prices briefly breached USD 81 per barrel today as traders digested sliding crude stockpiles in the United States, a key energy consuming nation.[47] LONDON — Oil prices rose back above 80 dollars on Wednesday as investors turned their attention to an upcoming U.S. energy inventory report.[33] The positive U.S. economic data helped reverse an earlier 2 per cent price decline in oil prices on Tuesday, when investors shunned riskier assets including oil.[20] There is generally an inverse relationship between oil prices and the strength of the U.S. Dollar.'' When the dollar weakens, investors flee the currency and look to invest in other Dollar based instruments such as oil.[24]
"In the real world of oil nothing has really changed," said Olivier Jakob of Petromatrix in Switzerland, adding that oil prices are at the mercy of stocks and the U.S. dollar's exchange rate.[27]
Some analysts say the oil price could fall further if a monthly U.S. unemployment report on Friday confirms the number of jobless continues to swell. "We still feel that a decline toward the $75 area could be forthcoming as this week proceeds," Galena, Illinois-based Ritterbusch and Associates said in a report. Others agreed, tying oil's current rally to speculative investments linked to the rise in the price of gold, which neared $1,100 an ounce on large purchases by the central bank of India.[7] SINGAPORE: Oil fell in Asian trade on Wednesday after overnight gains in commodities buoyed by gold's record breaking price surge, analysts said, as investors turned their focus on to a key U.S. inventory report.[19]
Crude reserves in the United States -- the world's biggest energy consuming nation -- are set to have risen by 1.4 million barrels in the past week, according to analysts' consensus forecast reported by Dow Jones Newswires. The U.S. Department of Energy releases its widely monitored inventory report later Wednesday.[33] The U.S. government's Department of Energy (DoE) today announced that American crude reserves sank by four million barrels in the week ending October 30. That confounded market expectations for a gain of 1.4 million barrels, according to analysts polled by Dow Jones Newswires.[47] The U.S. Department of Energy (DoE) announced on Wednesday that U.S. crude reserves sank by four million barrels in the week ending October 30, surprising analysts expecting a rise.[22]
The U.S. Energy Information Administration reported oil inventories dropped by 3.9 million barrels last week, where analysts polled.[48]
Energy Department figures showed crude inventories actually decreased by 4 million barrels from the previous week. At 335.9 million barrels, domestic crude stocks are near normal levels for this time of year.[34] The Energy Information Administration reported a surprise decrease of 4 million barrels in crude stocks.[3]
The API said commercial crude oil stocks in the United States fell 3.3 million barrels as imports dropped in the week to Oct. 30, versus expectation of a build of 1.4 million barrels.[41] Crude stocks fell 4.0 million barrels to 335.9 million barrels, the EIA said, greater than the 3.3 million barrel drawdown reported by the API, and defying forecast for a 1.4 million barrel build in a Reuters poll.[21] A Reuters survey forecast crude stocks to be up 1.4 million barrels and for distillate supply to be down 1 million barrels and gasoline stocks up 300,000 barrels.[6] The American Petroleum Institute said after the settlement on Tuesday that U.S. gasoline stocks rose by 501,000 barrels and distillate supplies increased by 1.8 million barrels last week, against forecasts for a 300,000 barrel increase in gasoline supplies and a 1 million barrel decline in distillate stocks.[29] Gasoline (petroleum) stocks are seen falling 100,000 barrels while distillates, which include diesel and heating oil, are tipped to have declined by one million barrels.[33] Stocks of distillates, which include diesel and heating oil, were off 400,000 barrels to 167.4 million barrels, lagging forecasts of a 1 million-barrel decline.[37]
U.S. weekly heating oil stocks were off 1.1 million barrels to 50.6 million, the EIA report added.[37]
Crude stocks at the NYMEX delivery point in Cushing, Oklahoma, were unchanged at 25.5 million barrels.[21]
New York's main contract, light sweet crude for delivery in December rose 56 cents to 80.16 dollars a barrel.[33] Crude for December delivery was down 20 cents to USD 79.40 a barrel on the New York Mercantile Exchange.[39] COMEX - Gold contracts for December delivery added $US15.90 to $US1,056.30 an ounce on the New York Mercantile Exchange.[14]
"Crude tested support at $76.50 area and held. The dollar came off its early highs and equities also recovered some since the factory orders data," said Tom Bentz, analyst at BNP Paribas Commodity Futures Inc in New York. [12] NEW YORK — Crude prices bounced above $80 per barrel once again on Wednesday, a level that even OPEC leaders have said is too high given the fragile state of the global economy.[46] Crude prices continue to rise. Last month the secretary general of the Organization of Petroleum Exporting Countries told the London Times that $80 per barrel was "a little bit high at this time of economic crisis."[46]
In London, December Brent crude LCOZ9 fell 97 cents, or 1.27 percent, to $75.58 a barrel, trading from $75.08 to $76.94.[2] NYMEX December heating oil HOZ9 fell 0.43 cents, or 0.21 percent, to $2.0417 a gallon, trading from $2.0030 to $2.0548.[12] NYMEX December RBOB RBZ9 settled up 1.23 cents, or 0.61 percent, at $2.0127 a gallon, trading from $1.9862 to $2.0317.[1]
In other Nymex trading, heating oil rose 1.65 cents to $2.0898 a gallon.[7] In other Nymex trading, heating oil rose less than a penny to $2.0757 a gallon.[32]
Crude oil futures climbed further in overnight trading after rising nearly 2 percent in the Tuesday NYMEX floor session.[34] New Delhi: Crude oil futures prices declined by 0.24 per cent on Wednesday as traders indulged in reducing their positions at prevailing higher levels in line with weakening global trend.[39] Analysts noted that the large crude drawdown was supply-driven, not demand-driven, making traders skeptical about pushing prices much higher. Heating oil and gasoline futures rose, lifted by crude's climb near the close and by EIA data showing their inventories posted small drawdowns last week.[1] Analysts expect the data to show crude inventories rose by 1.5 million barrels last week.[20]
Crude prices had fallen as the U.S. dollar firmed to a one-month high against other currencies and equities fell after disappointing earnings from Swiss banking giant UBS. U.S. crude for December rose 1.07 dollars per barrel to 79.20 dollars.[20] U.S. crude for December fell 61 cents to $79.79 a barrel by 0339 GMT, after settling up 80 cents on Wednesday.[17] U.S. crude for December CLc1 rose $1.20 to $80.80 a barrel by 1558 GMT, after settling up $1.47 on Tuesday.[16]
Crude has traded near $80 a barrel for the last few weeks as investors watch a volatile dollar and mixed signs on the strength of the U.S. economy.[36] Tokyo: U.S. crude futures inched lower but held above $80 on Thursday, a level it had closed at a day earlier for the first time in eight sessions after U.S. crude inventories showed an unexpected decline.[18] Crude futures made ground after the U.S. dollar weakened from $1.4768 against the euro to $1.4787 in.[49] Crude futures had rebounded sharply on Monday, buoyed by a weaker dollar and positive U.S. and Chinese economic data that bolstered hopes of stronger demand in the two biggest energy-consuming nations. The Institute of Supply Management said its factory index, also known as the purchasing managers index, grew for a third consecutive month in October with a reading of 55.7 percent. It was stronger than market expectations for a reading of 53 percent and the highest rate of growth since April 2006.[15]
Crude has been plentiful because the global economic slowdown has crimped demand, particularly in the United States. Most analysts believe crude supplies in the U.S. grew again last week and on Wednesday, the Energy Department will release its weekly supply and demand figures for oil and gasoline.[23] "The fundamentals of the markets are still weak. and there are no signs of steadily growing demand," said Jason Feer, Asia-Pacific vice-president of energy market analysts Argus Media in Singapore. He added that data released by the U.S. Department of Energy (DoE) on Wednesday showing an unexpected dip in U.S. crude reserves was "overall not that much" in the larger scheme of prices.[50]
However analysts said crude likely fell on Wednesday because of a stronger U.S. currency, which makes dollar-priced crude more expensive for holders of other foreign units. "The U.S. dollar has gotten a little stronger this morning and that may have something to do with crude edging down," said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.[19]
Crude oil for December contract fell by 0.24 per cent to Rs 3,770 per barrel with an open interest in 1,791 lots and delivery in November contract shed 0.21 per cent at Rs 3,741 per barrel with an open interest in 14,607 lots. [39] NYMEX crude for December delivery CLc1 was down 28 cents at $79.32 a barrel by 0050 GMT, after settling up $1.47 at $79.60 on Tuesday.[29] Brent North Sea crude for December delivery settled $US1.22 higher at $US76.42 per barrel.[14] In London, Brent North Sea crude for December delivery climbed 78 cents to settle at 78.89 dollars a barrel.[22] Brent North Sea crude for December delivery slipped 53 cents to $78.36.[50] Brent North Sea crude for December delivery was 40 cents lower at 77.71 dollars.[19]
In London, Brent North Sea crude for December climbed 1.56 dollars to settle at 78.11 dollars. "Oil was down this morning and all of a sudden gold took off like a rocket, and then oil took off as well," said Ellis Eckland, an independent analyst. "Oil is following the lead of gold as a hard asset," he explained.[45] We still notice a lot of instability in the oil market,''' Venezuelan Energy Minister Rafael Ramirez told reporters at a conference. Oil and other commodities prices, such as gold, rose in spite of a firming dollar on Tuesday. Crude has usually been pressured lower this year when the dollar rises, partly because it is priced internationally in dollars.[20] NEW YORK: Oil prices leapt on Tuesday as commodities gained a boost from gold, which struck an all-time high above 1,000 dollars an ounce as markets fret about the prospects of global recovery from recession.[45] As I drove past our local supermarket today, I noticed that petrol is now costing ''1.05 per litre. As the price of crude oil has risen over the last few months, petrol and diesel prices have inevitably followed, and it's starting to feel expensive to fill the car up again. I'm going to put my neck on the block and say that I think they might, and here's why. Other than rampant speculation, oil prices are generally influenced by two major factors general economic growth and the strength of the Dollar. As economies emerge from the recession, activities such as manufacturing, transport and leisure increase and consume more oil.''[24] The Dollar, however, is starting to strengthen which will start to put downwards pressure on crude oil prices. The emergence from recession by large oil consuming countries such as the USA may falter in the coming months as the governments turn down the economic stimulus funding.[24]
Oil prices were also boosted by a softened dollar. The greenback retreated against higher-yielding currencies such as the euro and the pound as investors await the Federal Reserve's wrap-up of its two-day meeting to discuss monetary policy.[3] Oil prices rose Tuesday as the Federal Reserve began a two-day policy meeting on interest rates.[23] Analysts warned that oil prices could suffer losses if there are any signs in the Federal Reserve's statement that monetary policy is going to be squeezed. 'Not long ago a few words from Saddam Hussein could turn prices on their head.[38]
Gold hit a record high above $1,095 per ounce as the dollar weakened and after the International Monetary Fund's 200-ton sale of gold to India's central bank enhanced sentiment towards the metal. The U.S. Federal Reserve ends its two-day meeting on Wednesday and, while it is expected to keep rates unchanged, there is speculation it might drop or alter its pledge to keep rates low for an 'extended period', even as signs of a recovery mount.[38] The dollar retreated after the Federal Reserve decided to leave the interest rate unchanged at a record low and again pledged to keep it there for an "extended period" to foster the fragile economic recovery. A weaker dollar tends to boost commodities priced in the U.S. currency as they become cheaper for holders of other currencies.[26] The dollar gave up more ground against the euro early Wednesday. It continued to tumble after the Federal Reserve decided to keep a key interest rate at a record low in hopes of bolstering a fledgeling economic recovery.[46]
Global equities rose from the previous day's four-week low and the dollar weakened ahead of a policy decision by the Federal Reserve, expected to affirm a commitment to low interest rates.[6] The S&P 500 and Nasdaq rose slightly on Tuesday as news of a major railroad acquisition helped sentiment, but the Dow edged lower on caution before a Federal Reserve statement on interest rates and the economy.[29]
Meanwhile global equity markets slid today as sentiment wobbled amid doubts about the prospects of a global recovery from recession and ahead of a U.S. Federal Reserve interest rate decision.[51] Later Wednesday, the U.S. Federal Reserve will release a statement on interest rates.[32]
Oil markets on Tuesday were anticipating weekly oil inventory reports and Friday's U.S. monthly employment report as well as results of the Federal Reserve's two-day meeting that started on Tuesday.[30] Trading sources pointed to market caution ahead of oil inventory data and as the Federal Reserve starts a two-day meeting on Tuesday and awaiting the monthly employment report from the United States on Friday.[12]
SYDNEY (Dow Jones)--Crude oil futures drifted lower in Asian trading Wednesday, as weekly U.S. oil data from the American Petroleum Institute offered mixed signals about the strength of the country's oil demand.[9] SYDNEY (Dow Jones)--Crude oil futures were slightly higher in Asian trading Tuesday, propelled by weakness in the U.S. dollar on a day when trading desks in Japan were closed for a public holiday.[49]
Oil futures fell, pressured by a report showing U.S. consumer spending fell in September for the first time in five months.[11]
Oil closed at over $80 a barrel for the first time in more than a week, following a Department of Energy report showing that fuel inventories fell last week, Bloomberg reported.[5] Inventories of distillate fuel, which include diesel and heating oil, fell by 400,000 million barrels to 167.4 million barrels for the week ended Oct. 30.[35] Gasoline inventories fell by 300,000 barrels, or 0.1 percent, to 208.3 million barrels. That was 7 percent above year-ago levels.[35] Gasoline inventories fell 300,000 barrels to 208.3 million barrels, EIA reported, versus forecasts of a small 300,000-barrel build.[37] Gasoline supplies fell 300,000 barrels to 208.3 million barrels, opposite the forecast for a 300,000 barrel increase and also against the API report of a 500,000 barrel build.[21]
The government report showed decreased of 300,000 million barrels in gasoline stockpiles against analysts' expectations for a rise of 800,000 barrels.[3]
Platts also expects gasoline stockpiles to rise 800,000 barrels, distillate stocks to decline by 1 million barrels and refinery utilization to increase 0.4 percentage point to 82.2 percent.[10] Distillate stocks fell 400,000 barrels to 167.4 million barrels, lower than the forecast for a 1.0 million barrel drawdown and against the API's 1.8 million-barrel build.[21]
Stockpiles of crude oil, forecast to have gained 1.5 million barrels in the week ended October 30, unexpectedly drpped nearly four million barrels.[40] Stockpiles of distillates, which include diesel and heating oil, were up 1.8 million barrels, versus forecasts of a fall of 1 million barrels.[41] Distillates, used to make heating oil and diesel, decreased by a modest 400,000 barrels and missed expectations for a drop of 1 million barrels.[3]
The API said distillate supplies rose 1.8 million barrels and gasoline stockpiles rose 501,000 barrels.[6] Gasoline production increased, averaging 9.0 million barrels per day, while daily distillate fuel production increased to 4 million barrels.[34]
Demand for gasoline over the four weeks ended Oct. 30 was unchanged from a year earlier, averaging nearly 9 million barrels a day.[35]
Analysts had expected a build of 1.3 million barrels for the week ended Oct. 30, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.[35] Last week's crude oil figure fell short of the build of 900,000 barrels analysts expected.[10] Crude oil's net advance amounted to just a nickel a barrel, and product prices were narrowly mixed, all of which led to some compression in refiners' margins. Wintertime 2-1-1 crack spreads gave up 35 cents a barrel this week.[34] Barclays expects oil prices to average $76 a barrel in the fourth quarter and $85 next year.[36] Analysts have also noted the usual correlation between the dollar and oil prices, with oil becoming cheaper and more attractive to international investors when the dollar falls.[7] Oil prices tend to fall when the U.S. currency rises and makes dollar-denominated commodities less appealing to international investors.[27]
Crude investors were earlier encouraged by signs of strength in the U.S. economy, which could help boost oil demand.[27]
A falling dollar tends to push crude prices higher. Oil is bought and sold with U.S. currency, and when the dollar drops, anyone holding euros or other strong currencies can trade them in for U.S. currency buy more oil for less.[46] A U.S. Federal Trade Commission rule is in place with fines for energy traders and companies up to $1 million a day for oil market manipulation.[6] Oil has jumped from $32 in December as traders have used crude and other commodities as a hedge against a weakening dollar and inflation.[36] Oil, which has gained more than $3 a barrel in the past three days, also got support from a weak dollar.[18] Without clear evidence of a sustainable recovery under way, Mike Fitzpatrick, vice president of energy at MF Global, says oil will not break through the year's high of $81.37 a barrel -- but it also won't drop below recent lows of $77 a barrel.[3] HSBC's China Purchasing Managers' Index rose to an 18-month high in October of 55.4 from 55.0 in September. "This suggested that domestic demand was growing rapidly which augurs well for energy demand growth in the world's second largest consumer of oil," said Mike Fitzpatrick, vice president at MF Global in New York.[31] The British pound rose to $1.6393 from $1.6383, while the dollar fell to 90.21 Japanese yen from 90.35 late Monday in New York.[27] The euro fell to $1.4645 in European trade, down from $1.4753 late Monday in New York.[27]
Prices eased after breaking through the $80 mark in New York on Wednesday, reflecting concerns over weak demand, analysts said.[50] Some people are viewing the rally in gold as a reason to push crude up," said Tim Evans, energy analyst at Citi Futures Perspective in New York.[30] 'Oil continues to hold above 77 bucks (for New York crude) but the attempted rally yesterday ran into quicksand,' said analyst at Capital Spreads Simon Denham on Tuesday.[15]
LONDON (Dow Jones)--Crude futures lost ground Tuesday amid across-the-board losses in European equity markets and concerns over the weak fundamentals of global oil market. With a lack of market-moving news on fundamentals, the crude oil market continued to take its cue from equity markets, which saw hefty losses in Europe after a bout of negative news, particularly for financial companies.[28] Investment interest in crude oil reached new heights last week as money managers-speculative investment funds-built a record net long exposure in futures.[34]
Refinery demand for crude oil, known as "crude runs," dropped by 233,000 bpd to 13.97 million bpd as refinery utilization fell 1.2 percentage point to 80.6 percent of capacity, counter to expectations of a 0.1 percentage point rise. [37] U.S. total oil product demand over the past 4 weeks came in at 18.82 million bpd, down 4.5 percent from a year ago, EIA added.[37]
The fact is refinery rates dropped more than a percent and we still didn't see a major drop in product inventories," said Gene McGillian, analyst at Tradition Energy in Stamford, Connecticut. "Refiners don't see the need to push through more crude, because demand hasn't been recovering at the pace that some expected," he added.[37] The report sparked a brief rally in crude, yet it also raised questions about why energy prices are rising right now. It isn't refiners, who turn crude into fuel, who are buying it. The demand for gasoline in the United States is flat compared with last year, and demand at this time last year was dismal. Last year at this time, the economic crisis was still unfolding and hurricanes in the Gulf of Mexico smothered gasoline sales.[46] Mike Fitzpatrick at MF Global said traders were searching for signs of a pickup in economic activity, which would boost demand for energy and lift prices. "Waxing and waning sentiment focusing on a recovery is again dominating participants' trading decisions," he said. He said the situation may become clearer after the monthly U.S. jobs report on Friday, which is expecting to show job losses narrowing to around 175,000 in October. "It will be recorded as a definite positive if job losses are 200,000 or less," Fitzpatrick said.[22]
The December NYMEX contract came into Wednesday's inventory report stalled at the $80 level. While it's trading above its short-term moving averages, some technical indicators paint a neutral-to-bearish picture for the contract.[34] "Today's report of a significant drop was a surprise, but the main catalyst pushing oil higher is the stronger stock market and weaker dollar," said James Cordier, president of Liberty Trading Group.[3] Traders said the fall in oil prices on Thursday was driven by the weak stock markets in Asia, with Japan's Nikkei average down 1.4 percent and Hong Kong's Hang Seng index retreated a nearly 1 percent.[17] SINGAPORE ' Oil prices were lower in Asia Thursday as traders took stock of weak fundamentals in the market, analysts said.[50]
STAFF WRITER 1:43 HRS IST London, Nov 3 (AFP) Oil prices rose today after falling earlier in the day as European equities slid and the dollar strengthened, traders said.[51] LONDON: World oil prices retreated Tuesday on profit-taking and as the market was rattled by sliding European equities and the strengthening dollar, traders said.[15]
Oil prices had already leapt on Tuesday as commodities gained a boost from gold futures, which have struck a series of record highs.[22] Oil prices have been rallying due to increased speculation related to India's gold purchases, but many analysts believe that it could head down without a better demand picture.[25] Analysts said a recovery in industrial activity may help justify higher oil prices.[20]
NYMEX - World oil prices rallied on Monday, partly boosted by positive manufacturing data from China.[14]
The speed at which crude and gasoline prices are rising has raised concern that the added burden for consumers and business could quash the very recovery that oil investors anticipate.[32] Earlier in the day, the Energy Information Administration reported that oil and gasoline supplies dropped, a surprise to most energy analysts who believed that the amount of unused crude in storage would grow.[46] Marathon Oil Corporation (MRO), T-3 Energy Services, Inc. (TTES), and Stone Energy Corporation (SGY) were some notable stocks in the energy industry as lower-than-expected crude inventories sent energy stocks higher.[25]
Crude climbs on surprise drop in crude stocks and on dollar's weakness, holding gains after Federal Reserve statement.[3] The dollar fell against the euro and a basket of currencies as firmer equity and commodity prices buoyed risk appetite and investors braced for the policy decision from the Federal Reserve expected at about 2:15 p.m. EST (1915 GMT).[21] The dollar rose against the euro on Tuesday as the Federal Reserve met to discuss monetary policies.[8]
Earlier Tuesday, it rose as high as $78.46 as investors welcomed new U.S. manufacturing and construction figures as positive signs of an economic recovery. [27] New orders received by U.S. factories rose 0.9 percent in September, stronger than expected, while inventories continued to shrink, the Commerce Department said.[30]
U.S. gasoline stockpiles fell by 300,000 barrels last week, against expectations for a slight build, while distillate inventories dropped a less-than-expected 400,000 barrels, according to the EIA.[18] U.S. crude inventories unexpectedly fell last week, a sign demand could be improving.[36] Crude runs, or demand for crude oil at U.S. refineries, were off 242,000 bpd.[41] Traders cited a strengthening dollar, which makes dollar-priced crude more expensive for buyers holding foreign currencies, for dampening oil demand.[51] Crude oil, like other commodities, is priced in dollars, and a weaker greenback can help support prices.[3] "When oil gets close to the 80-dollar level and the market tends to focus more on the high inventories of crude oil and fuel globally, it is difficult to surge through 80 dollars and sustain above the 80-dollar level," Shum said.[33] Analysts expect the government will say Wednesday that oil inventories grew last week, though a survey by American Petroleum Institute showed that crude stockpiles dropped.[32]
Near the close, oil market bulls took over to again lift gains for front-month December crude to more than $1.[11] Crude's $76.55 intraday low was 1 cent under Monday's low trade and technical support was charted at $76.20 a barrel.[30] "The only people who are telling you that oil is worth $85 (a barrel) is Wall Street."[32] The company earned $51.1 million, or $1.06 per share, on operating revenues of $202.7 million. Notably, the company also strengthened their balance sheet by reducing debt by $200 million and building up their cash position to improve shareholder equity. Marathon Oil Corporation ] took a hit to its earnings earlier this week on lower refining income, but moved higher today after announcing that it would begin drilling in Pasangkau, Indonesia during the first quarter.[25] The company reported third quarter net income of $4.1 million, or $0.32 per share, compared to $4.9 million, or $0.38 per share a year ago.[25]
Natural gas for December delivery rose 1.00 cent to $4.74 per 1,000 cubic feet.[36] Gasoline for December delivery advanced 2.25 cents to $2.0229 a gallon.[7]
Gasoline prices were in free fall, and the cost for a gallon of gas had dropped from $4.11 over the summer to $2.39 on Nov. 4. It's a different story this year.[46]
Natural gas for December fell 19.7 cents to settle at $4.725 per 1,000 cubic feet. Associated Press writers Pablo Gorondi in Budapest, Hungary and Alex Kennedy in Singapore contributed to this report. [46] Factory orders expanded 0.9 per cent in September, surpassing Wall Street analyst expectations and factory inventories fell.[20]
Brent North Sea crude for December climbed 74 cents to 77.29 dollars. "The moves higher are still very aggressive but they are now running into general drifting lower during periods," said Capital Spreads analyst Simon Denham.[51] West Texas Intermediate crude's per-barrel premium over heavier North Sea Brent slipped to $2.48 from last week's average of $2.61.[34]
The spread between the current front month and the five-year forward crude contract CLc61 was at $11.96, based on the December 2014 contract Tuesday settlement at $91.96.[6] The spread between the current front month and the five-year forward crude contract CLc61 finished at $13.33, expanding from $12.84 on Friday.[11]
The December 2014 contract settled Wednesday at $92.92, up 96 cents, or 1.04 percent.[1]
The euro fell about a full percent, hitting a four-week low of $1.4627 EUR= according to Reuters data.[2]
Late-session trading was choppy, and at one point crude futures gave up earlier gains as Wall Street sold off after rallying in the morning on the upbeat economic data. [11] Staying supportive in late trading, the dollar slid as the latest economic data dampened safe-haven demand for the greenback.[11]
The dollar extended losses against the euro to trade at session lows after the round of U.S. economic data.[31]
Oil is traded in U.S. currency, and as the dollar falls, oil gets cheaper for investors holding euros and other strong international currencies.[32] Investors also have been pumping money into oil contracts on the expectation that Americans will start driving more as the economy recovers. OPEC isn't "telling you that oil is a good buy at these prices," analyst Stephen Schork said.[32] Abdalla El-Badri, of Libya, pointed out that there are millions of barrels of oil floating in huge tankers on the ocean, and said supply is not the problem. He blamed oil speculators, as do others. OPEC isn't "telling you that oil is a good buy at these prices," analyst Stephen Schork said.[46] API figures indicated a likely increase of 1.8 million barrels vs. analysts' anticipated 1-million-barrel drawdown.[34] Sell-side analysts, however, had been looking for a 1.4 million-to-1.5 million barrel build to be reported.[34]
The NYMEX three-month roll remained essentially flat, averaging $1.79 a barrel versus $1.81 last week. [34] The euro bought $1.4781 on Wednesday, up from $1.4702 late Wednesday in New York.[7] NEW YORK -- The Energy Department will likely report a 1.3 million-barrel build in crude-oil reserves on Wednesday for the week ended Oct. 30, according to a survey by Platts, the energy-information arm of McGraw-Hill Cos. The Energy Information Administration releases its weekly report at 10:30 a.m. EDT.[10] Over the next month or so, we may some sell-offs in equities as people take profits for the year," said Stephen Maloney, Managing Consultant, Enterprise Risk Management, Towers Perrin in New York.[12]
Oil had earlier followed gold's lead as the precious metal soared to new record highs Tuesday above 1,080 dollars an ounce after the International Monetary Fund said it sold 200 tonnes of gold to India for 6.7 billion dollars. [19] Oil also drew support from a weak dollar, which fell against a basket of currencies on Wednesday, helping to send gold to a record high. A weaker dollar makes commodities like oil cheaper for those holding other currencies.[38]
Gold swept to a record high above $1,080 per ounce on Tuesday, defying dollar strength, as the International Monetary Fund's 200-tonne sale of gold to India's central bank enhanced sentiment toward the metal.[13] Gold hit record highs above $1,095 an ounce as dollar weakness added to momentum lent to the market by India's purchase of 200 tonnes of gold from the IMF.[6]
The price of gold soared to new record highs on Tuesday, topping 1,080 dollars an ounce, a day after the International Monetary Fund announced it sold 200 tonnes of gold to India for 6.7 billion dollars.[45] Purvin and Gertz analyst Victor Shum said prices were unlikely to hold above 80 dollars owing to concerns about weak energy demand amid mixed signals on the state of the global economy.[22] "While the latest EIA data appears to confirm the API report yesterday, it also reflects the fact that the numbers spell a negative trend for oil demand," said Phil Flynn, analyst at PFGBest Research in Chicago. "At this point, people are awaiting the result of the Fed meeting and that seems to be already overshadowing the weekly inventory reports."[21] Heating oil futures were up after the government data showed a drawdown in distillate supplies, with the heating oil component showing a sharp decline.[21] Gasoline futures fell back, even tough the EIA data showed a small drawdown, which went against forecasts for a build.[21]
The EIA report also showed an unexpected decline in gasoline stockpiles, which fell by 300,000 barrels.[38] The government's report showed inventories actually shrunk by 300,000 barrels. This week, industry and the Street squared off on expectations about distillate fuel inventories.[34] Distillates inventories fell by 400,000 barrels, less than the expected 1 million-barrel decline.[38] Gasoline stockpiles also fell, down 300,000 barrels, against forecasts for a slight build, while distillates dropped a less-than-expected 400,000 barrels, the EIA said.[17]
Gasoline stockpiles were up 501,000 barrels, the API said, compared with analysts' expectations of a 300,000-barrel build.[41]
"The API data showing a surprise drawdown in crude inventories appears not to add up, with crude runs and capacity utilization down. API says imports were down, but mostly everybody was expecting these to be up," said Phil Flynn, analyst at PFGBest Research in Chicago.[13] As the data confirmed the American Petroleum Institute's report showing an unexpected heavy drop in crude supplies, traders appeared unwilling to bid up crude any further.[21]
U.S. oil inventory data for the week to Oct. 30 is due from industry group American Petroleum Institute late Tuesday. This would be followed by official data from the U.S. Department of Energy on Wednesday.[20] U.S. oil inventories dropped last week, the American Petroleum Institute said late Tuesday.[7]
Some analysts are predicting that oil could fall further if a U.S. unemployment continues to fall with numbers expected on Friday.[25] The U.S. manufacturing sector grew in October for the third consecutive month and at a faster rate than was expected, according to a report from the Institute for Supply Management released on Monday. Pending sales of previously owned U.S. homes unexpectedly rose in September to their highest level in nearly three years ahead of expiration of a tax credit for first-time buyers, the National Association of Realtors said.[31] "Very slowly, the imbalances in the U.S. oil market have been sorting themselves out," Barclays Capital said in a report.[36] The move accelerated last month on a report that Gulf States may stop using the greenback for oil trading.[50]
Stocks rallied in early trading following a high close in overseas markets and on data reporting the pace of layoffs is slowing.[3] The oil market was dragged lower as European stock markets tumbled and Britain unveiled a major shake-up of the banking industry, analysts said.[15] "Oil is still being controlled by larger macroeconomic forces and not just demand and demand expectations," said PFGBest analyst Phil Flynn.[23] "Gold and oil have been moving in the same direction recently," said Adam Sieminski at Deutsche Bank. "The underlying traditional fundamentals, like supply or demand, have been getting a little bit better but probably not enough to account for the day-to-day variation which has been driven more by technical factors," he said.[45]
The market also digested news that Iraq signed a deal on Tuesday with British energy giant BP and China's CNPC to almost triple oil production at a giant southern oilfield.[45] Crude's initial strength spurned on by dollar weakness saw a further lift as the Department of Energy weekly inventory figures posted declines across the board.[40] As it turned out, Wall Street was vindicated by the Energy Department's report, which showed stockpiles decreasing by 400,000 barrels.[34]
Earlier, equities rose as data showed the services sector grew in October while U.S. companies cut jobs last month at the slowest pace in a year.[1] The U.S. dollar rose to a one-month high against a basket of currencies as concerns about the banking sector and weaker equities boosted the greenback's safe-haven appeal.[30]
In the early going, crude futures rose after HSBC's China Purchasing Managers' Index rose to an 18-month high in October of 55.4 from 55.0 in September. [11] The steady rise in crude prices has pulled the retail price for gasoline higher.[23] Although there is often a lag between falling oil prices and reducing petrol prices on the forecourt, if I am correct, then hopefully it will be cheaper to fill the car up soon.[24] Oil field services providers Cameron International Corp ( CAM.N ) and Rowan Companies Inc ( RDC.N ) said quarterly profits were better than expected with an uptick in drilling activity, and said the outlook for the sector is improving with a recovery in commodity prices. Mexico's oil exporting ports Dos Bocas and Coatzacoalcos reopened on Tuesday morning, after bad weather shut the ports this weekend, the government said.[13] Inventories of distillates like heating oil and diesel fuel were, however, expected to fall, according to Reuters weekly poll of analysts.''[20]
Tuesday's gains came after U.S. factory orders in September expanded at a quicker pace than expected, signalling potential for more fuel demand in the world's biggest energy consumer.[29] U.S. stocks stumbled after Morgan Stanley downgraded the semiconductor sector and a shake-up at two big British banks prompted investors to sell financial shares.[30] U.S. stocks fell, weighed by technology and financial shares, as Morgan Stanley downgraded the semiconductor sector and amid the British banks shake up and poor UBS results.[12]
World stocks hit a four-week low, helping boost the dollar as poor results from UBS UBSN.VS and a shake-up of UK banks Lloyds ( LLOY.L ) and Royal Bank of Scotland ( RBS.L ) prompted investors to cut back on risk. [12]
Interest rates, which have a heavy influence on the dollar, are expected to be left unchanged near zero, though the language in the Fed statement will be parsed for any hints about the health of the economy and how soon rates might be increased.[32] Wall Street briefly pared gains, then climbed higher in choppy trading after the Fed decided to keep interest rates unchanged, as expected.[1]
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34. greenfaucet
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41. UPDATE 1-U.S. crude stocks fall sharply, products up-API | Markets | Reuters
42. UPDATE:OIL FUTURES:Oil Above $79/Bbl On Upbeat Factory Orders - WSJ.com
43. OIL FUTURES: Oil Up On US Factory Orders; Commodity Buying - WSJ.com
44. OIL FUTURES: Nymex Crude Rises After Oil, Fuel Stocks Fall - WSJ.com
45. channelnewsasia.com - Oil prices surge in wake of gold's record high
46. The Associated Press: Oil: back to $80 per barrel as dollar slides
47. fullstory
48. OIL FUTURES:Crude Settles Above $80 On Surprise Oil Stock Draw - WSJ.com
49. OIL FUTURES: Nymex Crude Moves Higher As US Dollar Weakens - WSJ.com
50. Business - Oil prices down in Asian trade on demand concerns - INQUIRER.net
51. fullstory
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