Crude prices lose more than a dollar as stockpiles rise less than expected
Crude prices closed more than $1.5/barrel lower today, Wednesday, 14 May, 2008 after the greenback rose significantly and also after Energy Department reported that crude stockpiles rose less than expected last week. Prices for crude oil have been hovering around $125 for quite some time now against a backdrop of disruptions to oil production in Nigeria.
Crude-oil futures for light sweet crude for June delivery today closed at $124.22/barrel (lower by $1.58/barrel or 1.3%) on the New York Mercantile Exchange. Price touched a high of $125.85 earlier during the day.
Last week, crude prices ended higher by 8.8%. For the year, crude is up by 25.9% till date.
The Energy Department reported today that crude inventories rose to 325.8 million barrels, up 200,000 barrels, for the week ended 9 May. Supplies have now increased a total of 12.1 million barrels over the course of four weeks.
Distillate inventories, which include heating oil and jet fuel, climbed 1.4 million barrels on the week to stand at 107.1 million barrels. Distillates at 107.4 million barrels, were down 2.4 million barrels. Gasoline supplies fell more than expected last week, the reports showed. They were down 1.7 million barrels to 210.2 million barrels.
EIA also reported that total implied U.S. fuel demand fell 2.7% from a year earlier to 20.3 million barrels a day last week. Consumption averaged 20.5 million barrels a day in the past four weeks, down 0.3% from a year earlier.
At the currency markets on Wednesday, the dollar posted healthy gains against major rivals after a rally in stocks offset a calmer-than-anticipated reading on U.S. inflation. The euro resumed its slide vs. the dollar.
The Labor Department reported today that the consumer-price index rose 3.9% in the 12 months ended April. Excluding volatile food and energy prices, the core consumer price index increased 0.1%, against an expected 0.2%.
Brent crude oil for June settlement today fell $2.24 (1.8%) to $121.86 on the London-based ICE Futures Europe exchange. The London benchmark rose 54% in FY 2007, the most since 1999 when prices more than doubled.
U.S. natural gas rose to the highest since December 2005 after Enterprise Products Partners LP delayed resumption of a pipeline. Natural gas for June delivery rose 17.6 cents (1.5%) to settle at $11.598 per million British thermal units. Futures have gained 55% so far this year.
Against this backdrop, June reformulated gasoline fell 2 cents to end at $3.18 a gallon and June heating oil finished down 8 cents at $3.62 a gallon.
EIA reported last week that global oil consumption will likely grow by 1.2 million barrels per day this year, but the consumption of liquid fuels and other petroleum is expected to decline by around 190,000 barrels per day because of the economic slowdown and high petroleum prices. The EIA also expects regular gasoline prices to average $3.52 per gallon this year, up 71 cents from a year ago.
Crude had ended FY 2007 substantially higher by $35 or 57%. It was crude's biggest yearly gain in five years.
Crude prices closed more than $1.5/barrel lower today, Wednesday, 14 May, 2008 after the greenback rose significantly and also after Energy Department reported that crude stockpiles rose less than expected last week. Prices for crude oil have been hovering around $125 for quite some time now against a backdrop of disruptions to oil production in Nigeria.
Crude-oil futures for light sweet crude for June delivery today closed at $124.22/barrel (lower by $1.58/barrel or 1.3%) on the New York Mercantile Exchange. Price touched a high of $125.85 earlier during the day.
Last week, crude prices ended higher by 8.8%. For the year, crude is up by 25.9% till date.
The Energy Department reported today that crude inventories rose to 325.8 million barrels, up 200,000 barrels, for the week ended 9 May. Supplies have now increased a total of 12.1 million barrels over the course of four weeks.
Distillate inventories, which include heating oil and jet fuel, climbed 1.4 million barrels on the week to stand at 107.1 million barrels. Distillates at 107.4 million barrels, were down 2.4 million barrels. Gasoline supplies fell more than expected last week, the reports showed. They were down 1.7 million barrels to 210.2 million barrels.
EIA also reported that total implied U.S. fuel demand fell 2.7% from a year earlier to 20.3 million barrels a day last week. Consumption averaged 20.5 million barrels a day in the past four weeks, down 0.3% from a year earlier.
At the currency markets on Wednesday, the dollar posted healthy gains against major rivals after a rally in stocks offset a calmer-than-anticipated reading on U.S. inflation. The euro resumed its slide vs. the dollar.
The Labor Department reported today that the consumer-price index rose 3.9% in the 12 months ended April. Excluding volatile food and energy prices, the core consumer price index increased 0.1%, against an expected 0.2%.
Brent crude oil for June settlement today fell $2.24 (1.8%) to $121.86 on the London-based ICE Futures Europe exchange. The London benchmark rose 54% in FY 2007, the most since 1999 when prices more than doubled.
U.S. natural gas rose to the highest since December 2005 after Enterprise Products Partners LP delayed resumption of a pipeline. Natural gas for June delivery rose 17.6 cents (1.5%) to settle at $11.598 per million British thermal units. Futures have gained 55% so far this year.
Against this backdrop, June reformulated gasoline fell 2 cents to end at $3.18 a gallon and June heating oil finished down 8 cents at $3.62 a gallon.
EIA reported last week that global oil consumption will likely grow by 1.2 million barrels per day this year, but the consumption of liquid fuels and other petroleum is expected to decline by around 190,000 barrels per day because of the economic slowdown and high petroleum prices. The EIA also expects regular gasoline prices to average $3.52 per gallon this year, up 71 cents from a year ago.
Crude had ended FY 2007 substantially higher by $35 or 57%. It was crude's biggest yearly gain in five years.
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