Your Economy (No Politics)

[Bullwinkle]

Crude supplies down 2.7 million barrels last week: API
Wednesday, February 8, 2006 4:03:13 PM
http://www.afxpress.com


SAN FRANCISCO (AFX) -- The American Petroleum Institute said crude inventories fell 2.7 million barrels for the week ended Feb. 3. The Energy Department had reported a decline of 300,000 barrels. Motor gasoline inventories were up 2.8 million barrels, the API said -- below the government's reported 4.3 million-barrel increase. Distillate stocks fell by 1.2 million barrels, the API said -- below the government's reported decline of 300,000 barrels.

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Oil steadies as US stockpile surpluses offset by geo-political concerns
Wednesday, February 8, 2006 6:07:37 PM
http://www.afxpress.com


LONDON (AFX) - Oil prices were largely unchanged after earlier touching 4 week lows, as weekly US inventory data showing stockpile surpluses was offset by concerns the Iranian nuclear dispute could yet end in supply disruptions

At 5.30 pm, March-dated US light crude futures were up 6 cents at 63.15 usd, after earlier touching a 4 week low of 62.30, while March-dated Brent contracts were down 6 cents at 61.50 usd a barrel

Oil prices have lost some 5 usd in the past week alone on rising US stockpile levels, which have managed to eat into price gains of almost 9 pct made in January. Those stockpile surpluses were re-affirmed again today after the US Energy Information Administration said gasoline supplies rose 4.3 mln barrels last week, taking them 1.7 pct above last year's levels

Crude and distillate stocks both lost 300,000 barrels, however, but analysts noted that both crude and distillates, which include diesel and heating oil, are well above average for this time of year. They said the much greater than expected gain in gasoline stocks was more significant because traders had until recently been concerned gasoline stocks would be stretched tight when demand peaks in the US summer driving season

Fimat analyst Mike Fitzpatrick said that while the market remains vulnerable to wide price swings in either direction, "the path of least resistance remains down as long as supplies remain the market's dominant focus"

He warned, however, that in the current environment, falling prices offer buying opportunities as traders remain nervous about geo-political tensions in Iran

The UN nuclear watchdog, the IAEA, voted Saturday to refer Tehran to the Security Council over its nuclear program. In retaliation, Iran resumed uranium enrichment and stopped UN spot checks of its nuclear sites

Iran is the world's fourth largest crude exporter, with sales of some 2.5 mln barrels per day. As global spare capacity is currently around 1.5 mln bpd, traders fear export disruptions from Tehran will cause prices to soar. Fitzpatrick noted, however, that the threat to Iran's oil supply is not immediate, and that any steps toward sanctions against Iran have been put off till March when the UN Security Council meets. He added that while "upside price risk" remains, "traders are forced to contend with the ample supply situation" in the absence of an immediate threat to supplies from Iran

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