NYMEX crude steady below $127, after gasoline rally
U.S. crude oil futures steadied on Thursday after rallying more than $4 on Wednesday, when an unexpected drop in gasoline stocks, refinery problems, and geopolitical tensions from Iran and Nigeria pushed up prices.
* Front-month U.S. crude for September delivery CLc1 was down 7 cents, or 0.1 percent, at $126.70 a barrel on the Globex
electronic trading platform. On Wednesday, it jumped by $4.58, or 3.8 percent, to settle at $126.77.
* U.S. gasoline stocks fell by 3.5 million barrels last week, according to the U.S. Energy Information Administration on
Wednesday, countering analyst calls for a 200,000-barrel build. [EIA/S]
The EIA report also showed U.S. crude oil stocks dropped by 100,000 barrels, lower than analysts forecasts, while
distillate stocks rose 2.4 million barrels, more than expected.
* Additional support came from refinery problems, with BP cutting rates at its Texas City, Texas, plant due to
mechanical problems. Top U.S. refiner Valero plans to cut gasoline production by an average of 330,000 barrels per
day (bpd) in the third quarter at its 16 plants.
* Iran will press ahead on its nuclear path, the country’s highest authority, Supreme Leader Ayatollah Ali Khamenei, said on
Wednesday, speaking just before a deadline set by Western officials in a nuclear dispute. [ID:nBLA050797]
Western powers gave Iran two weeks from July 19 to respond to their offer to hold off on imposing more U.N. sanctions on Iran
if Tehran would freeze any expansion of its nuclear work.
* Rival militant factions in Nigeria’s oil-producing Niger Delta have clashed in an apparent turf war, killing at least four
people, security officials said on Wednesday. [ID:nL0220821]
Militant attacks have disrupted supplies from the OPEC nation this year, helping pushing up oil prices.
* A bill aimed at preventing excessive speculation in oil and other futures trading did not get enough votes to pass in the
U.S. House of Representatives on Wednesday, as Republicans complained the measure did not also open more offshore areas to oil drilling. [ID:nN30439380]
* Traders will be looking towards U.S. economic indicators due out later on Thursday, which include real GDP and initial
claims for jobless benefits, as well as the New York Purchasing Managers index for July, to gauge how the economy of the world’s largest oil consumer is fairing. To read the previous day’s closing market report, click [O/R] Diary of upcoming energy news and events — [O/DIARY] Oil prices as of 0011 GMT
Contract Mnth Price Change Day ago pct MA-20* NYMEX Contracts US Crude SEP8 $126.70 -0.07 +$4.58 +3.75% $134.29 Heat Oil AUG8 352.30 +0.27 +4.81 +1.39% 381.19 RBOB AUG8 0.00 +0.00 +12.74 +4.24% 330.29 Natgas SEP8 $9.260 +0.012 +$0.118 +1.29% $11.256 ICE Contracts Brent SEP8 NA +$4.39 +3.58% $135.16 Gasoil AUG8 NA -$6.75 -0.59% $1232.23 Note: U.S. heating oil and RBOB gasoline contracts listed in cents per gallon. * = 20-day moving average for continuation month. (Reporting by James Topham; Editing by Edwina Gibbs)
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