QUOTES OF THE DAY

-->"YOU CAN'T PRODUCE A BABY IN ONE MONTH BY GETTING NINE WOMEN PREGNANT."

-->"IT IS NOT IMPORTANT TO FIGURE OUT WHAT THE MARKET WILL DO. IT IS ALWAYS IMPORTANT TO FIGURE OUT WHAT YOU WILL DO" .....RAJASEKHAR IYER

-->"SHORT TERM PLEASURE OF BOOKING PROFITS IS DETRIMENTAL TO CREATION OF WEALTH.".........NAWIN SINHA

Thursday, April 19, 2007

LONDON (Thomson Financial) - Oil prices found no clear direction after a mixed picture of US energy stocks emerged from the latest weekly snapshot reported by the Energy Information Administration. While headline figures showed a sharper than expected fall, there were offsetting gains in US gasoline production and imports in US weekly stocks data just out. Gasoline is the most important indicator ahead of the peak demand US driving season which starts at the end of May. At 4.54 pm, London Brent crude for June delivery was down 37 cents at 65.56 usd a barrel. Meanwhile, New York crude for May delivery was down 17 cents at 62.93 usd a barrel. New York May contracts will expire on Friday. The Energy Information Administration said gasoline stocks fell by 2.7 mln barrels in the week to March 13, against an expected drop of 1.66 mln barrels. Crude oil inventories also surprised the market, falling by 1 mln barrels against an expected rise of 890,000 barrels. Meanwhile, gasoline production was up 133,000 bpd and that imports were up 86,000 bpd. Citigroup analyst, Tim Evans said the data had a bit of everything. "The crude stock decline was supportive," he said, adding however that "market focus here is on rising supplies." Gasoline demand was down 2.4 pct from the week before but up 2.6 pct compared with last year. Distillates, which include heating oil were down 800,000 barrels, largely in line with a predicted 512,000-barrel fall. Man Financial analyst Edward Meir said prices may have dipped after the data was released as a rise in refinery runs was also reported, signalling higher supplies. "But, its still early, and we could end up higher," he said. Utilisation rates increased by 2 pct to 90.4 pct last week, against an expected rise of just 0.33 pct. "Higher utilisation rates, coupled with increasing imports, should serve to balance the product market," said analysts at Credit Suisse. Increased utilisation rates also show refiners are successfully coming to the end of the maintenance period, which lasts from late January to April. Elsewhere, traders kept a close eye on developments in Nigeria, the world's eighth largest oil exporter, ahead of presidential elections this weekend. Last week at least 21 people were killed during the initial state elections. "The countrys propensity for violence should increase over the next few weeks ahead of very controversial elections," said Meir of Man Financial. "We would not be surprised to see majors like Royal Dutch Shell being cautious about announcing any type of restarts, knowing full well that the country is entering yet another dangerous period just ahead." Shell traders said the company was expected to restart its Forcados crude oil stream in Nigeria's Niger Delta after being shut a year ago following militant attacks. However, the company declined to comment officially. The news "has weighed more on UK Brent, since it is more closely tied to flows from West Africa," commented Nas Nijjar,

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