Crude oil fell after touching a record yesterday amid forecasts that a U.S. government report due today will show inventories increased in the world's largest energy user.
The Energy Department is scheduled to release its weekly report on inventories at 10:30 a.m. in Washington. U.S. crude- oil stockpiles probably rose 2.3 million barrels last week, according to the median of 11 responses in a Bloomberg News survey. The Houston Ship Channel, which serves the largest U.S. petroleum port, closed because of fog.
``The fundamentals themselves are generally weak, there's a lot of oil out there,'' said Rick Mueller, an analyst in Tilburg, Netherlands, for Energy Security Analysis Inc. ``Inventories in the U.S. are rising and they'll probably rise again this week.''
Crude oil for April delivery fell as much as $1.06, or 1.1 percent, to $98.64 a barrel on the New York Mercantile Exchange, trading for $98.85 at 1:50 p.m. London time. The March contract expired yesterday at the end of floor trading at $100.74, after rising to an intraday record of $101.32.
Brent crude for April settlement fell 95 cents to $97.47 on London's ICE Futures Europe exchange.
`Sufficiently Supplied'
U.S. crude supplies jumped 18.2 million barrels, or 6.4 percent, in the previous five weeks of data reported by the Energy Department. Gasoline supplies probably climbed 450,000 barrels last week from 229.2 million, according to the survey.
``We are still very sufficiently supplied if you look at crude stock levels, and that level is increasing,'' said Andy Sommer, an analyst with HSH Nordbank in Hamburg. ``You have very low refining margins, so refineries are shutting units early to perform maintenance,'' causing crude supplies to rise.
Investors are turning to commodities such as oil as rising U.S. inflation makes dollar-priced assets cheaper and attractive as a hedging instrument. The dollar has lost 11 percent against the euro in the past year.
``One hundred and twenty dollars shouldn't be a surprise,'' Johannes Benigni, managing director of Vienna-based JBC Energy. ``Most of the demand increase is nowadays in the Middle East, where consumers are shielded, and in China,'' while a U.S. slowdown means only a ``slight'' demand reduction.
The Energy Department is scheduled to release its weekly report on inventories at 10:30 a.m. in Washington. U.S. crude- oil stockpiles probably rose 2.3 million barrels last week, according to the median of 11 responses in a Bloomberg News survey. The Houston Ship Channel, which serves the largest U.S. petroleum port, closed because of fog.
``The fundamentals themselves are generally weak, there's a lot of oil out there,'' said Rick Mueller, an analyst in Tilburg, Netherlands, for Energy Security Analysis Inc. ``Inventories in the U.S. are rising and they'll probably rise again this week.''
Crude oil for April delivery fell as much as $1.06, or 1.1 percent, to $98.64 a barrel on the New York Mercantile Exchange, trading for $98.85 at 1:50 p.m. London time. The March contract expired yesterday at the end of floor trading at $100.74, after rising to an intraday record of $101.32.
Brent crude for April settlement fell 95 cents to $97.47 on London's ICE Futures Europe exchange.
`Sufficiently Supplied'
U.S. crude supplies jumped 18.2 million barrels, or 6.4 percent, in the previous five weeks of data reported by the Energy Department. Gasoline supplies probably climbed 450,000 barrels last week from 229.2 million, according to the survey.
``We are still very sufficiently supplied if you look at crude stock levels, and that level is increasing,'' said Andy Sommer, an analyst with HSH Nordbank in Hamburg. ``You have very low refining margins, so refineries are shutting units early to perform maintenance,'' causing crude supplies to rise.
Investors are turning to commodities such as oil as rising U.S. inflation makes dollar-priced assets cheaper and attractive as a hedging instrument. The dollar has lost 11 percent against the euro in the past year.
``One hundred and twenty dollars shouldn't be a surprise,'' Johannes Benigni, managing director of Vienna-based JBC Energy. ``Most of the demand increase is nowadays in the Middle East, where consumers are shielded, and in China,'' while a U.S. slowdown means only a ``slight'' demand reduction.
Consumer prices in the U.S. rose more than forecast in January, indicating that the faltering economy hasn't alleviated inflation pressures. The 0.4 percent increase in the cost of living matched the gain in December, the Labor Department said yesterday in Washington.
`Thrive In'
``This is the type of environment commodities thrive in,'' said Edward Meir, an analyst at MF Global Ltd. in Connecticut. ``The current run could continue for a little while longer, given the general infatuation with commodities.''
Hedge-fund managers and other large speculators increased their net-long position in New York crude-oil futures in the week ended Feb. 12, according to U.S. Commodity Futures Trading Commission data released Feb. 15.
Speculative long positions, or bets prices will rise, outnumbered short positions by 39,922 contracts on the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report. Net-long positions rose by 12,474 contracts, or 45 percent, from a week earlier.
Tanker traffic along the Houston Ship Channel halted at 2 a.m. local time today, an official at the Houston Pilots Association, who declined to be identified, said by telephone.
`Thrive In'
``This is the type of environment commodities thrive in,'' said Edward Meir, an analyst at MF Global Ltd. in Connecticut. ``The current run could continue for a little while longer, given the general infatuation with commodities.''
Hedge-fund managers and other large speculators increased their net-long position in New York crude-oil futures in the week ended Feb. 12, according to U.S. Commodity Futures Trading Commission data released Feb. 15.
Speculative long positions, or bets prices will rise, outnumbered short positions by 39,922 contracts on the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report. Net-long positions rose by 12,474 contracts, or 45 percent, from a week earlier.
Tanker traffic along the Houston Ship Channel halted at 2 a.m. local time today, an official at the Houston Pilots Association, who declined to be identified, said by telephone.
By Grant Smith
Read more | Digg story
Blogalaxia:OiL fotolog Technorati:OiL Bitacoras:OiLagregaX:OiL
No comments:
Post a Comment