Oil prices higher as traders fret over US gas stocks
Oil prices were higher in Asian trade on Thursday as the market continued to fret over US gasoline (petrol) reserves, dealers said.
By Agencies |
SINGAPORE: Oil prices were higher in Asian trade on Thursday as the market continued to fret over US gasoline (petrol) reserves, dealers said.
At 10:39 am (0239 GMT), New York's main oil futures contract, light sweet crude for August delivery, was eight cents higher at $72.64 a barrel from $72.56 in late US trades on Wednesday.
Brent North Sea crude for August delivery added 10 cents to $75.54. Figures on Wednesday showed US gasoline stockpiles rose 1.2 million barrels to 205.6 million in the week ending July 6, comfortably beating analysts' consensus forecasts of a gain of 825,000 barrels.
Despite the increase, gasoline reserves remain 3.8 per cent lower than a year ago.
"It's higher than expectations but stocks remain relatively low and it remains a concern with the peak period of demand," said Gerard Burg, a minerals and energy economist with National Australia Bank in Melbourne.
The market is focused on gasoline reserves due to peak demand during the current summer holiday driving season when many Americans take to the highways.
US crude oil inventories fell 1.4 million barrels to 352.6 million, outstripping market forecasts of a 50,000 barrel decline but up 5.1 per cent from a year ago.
US refineries picked up steam slightly, operating at 90.2 per cent of capacity compared with 90.0 per cent the previous week, but analysts had banked on a stronger performance of 90.4 per cent.
Amid high oil prices, the Organisation of the Petroleum Exporting Countries (OPEC) maintained it would not boost output to ease pressure because the factors driving up the market were not supply-related.
OPEC Secretary General Abdullah al-Badri said Wednesday that "current high oil prices are not in any way related to crude supplies" but were the result of geopolitical tensions, inadequate refining capacity and speculation.
The OPEC cartel, which pumps more than a third of the world's oil production, has scheduled its next output meeting on September 11 in Vienna, Austria.
At 10:39 am (0239 GMT), New York's main oil futures contract, light sweet crude for August delivery, was eight cents higher at $72.64 a barrel from $72.56 in late US trades on Wednesday.
Brent North Sea crude for August delivery added 10 cents to $75.54. Figures on Wednesday showed US gasoline stockpiles rose 1.2 million barrels to 205.6 million in the week ending July 6, comfortably beating analysts' consensus forecasts of a gain of 825,000 barrels.
Despite the increase, gasoline reserves remain 3.8 per cent lower than a year ago.
"It's higher than expectations but stocks remain relatively low and it remains a concern with the peak period of demand," said Gerard Burg, a minerals and energy economist with National Australia Bank in Melbourne.
The market is focused on gasoline reserves due to peak demand during the current summer holiday driving season when many Americans take to the highways.
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US crude oil inventories fell 1.4 million barrels to 352.6 million, outstripping market forecasts of a 50,000 barrel decline but up 5.1 per cent from a year ago.
US refineries picked up steam slightly, operating at 90.2 per cent of capacity compared with 90.0 per cent the previous week, but analysts had banked on a stronger performance of 90.4 per cent.
Amid high oil prices, the Organisation of the Petroleum Exporting Countries (OPEC) maintained it would not boost output to ease pressure because the factors driving up the market were not supply-related.
OPEC Secretary General Abdullah al-Badri said Wednesday that "current high oil prices are not in any way related to crude supplies" but were the result of geopolitical tensions, inadequate refining capacity and speculation.
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The OPEC cartel, which pumps more than a third of the world's oil production, has scheduled its next output meeting on September 11 in Vienna, Austria.
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