NEW YORK, Sept 9 (Reuters) - U.S. crude oil futures headed
higher in post-settlement trading on Wednesday, after industry
data showed that domestic crude inventories fell much more than
expected last week.
The American Petroleum Institute reported that crude stocks fell 7.2 million barrels to 336.3 million barrels in the week to Sept. 4, far more than the forecast in a Reuters poll for a 1.5 million barrel drawdown.
Distillate stocks, which include heating oil and diesel fuel, shot up 3.3 million barrels to 165.1 million barrels, the industry group said, far exceeding the forecast for an 800,000 barrel increase.
The API said gasoline stocks rose 571,000 barrels, to 207.5 million barrels, against the forecast for a 1.3 million barrel drawdown.
'The API stock draw, at 7.2 million barrels, is too big to be believed at this point and probably traders will be cautious. But the big build in distilates is also stunning and may offset the effects of the big crude stock draw.' said Phil Flynn, analyst at PFGBest Research in Chicago.
Flynn said traders will seek confirmation of the large crude draw when the U.S. Energy Information Administration (EIA) releases its own inventory data on Wednesday, at 11 a.m. EDT (1500 GMT).
Earlier, October crude futures settled slightly higher but well off session peaks as traders took profits after the dollar pared losses late while gold copper, and silver slid after a rally on Tuesday, analysts said.
Traders also took defensive positions ahead of weekly U.S. government inventory data and after the latest forecasts called for lower global oil demand, they said.
The U.S. dollar hit its lowest level in nearly a year against a basket of major currencies, as growing evidence of of a global recovery spurred a move into riskier trades.
U.S. stocks rose for a fourth straight day, sending the S&P 500 index to its best close so far this year as industrial and technology shares gained from a weak dollar.
OPEC ministers were expected to leave output unchanged at their meeting on Wednesday in Vienna after Saudi Arabia and others in the group said there was no need for action. The meeting started at close to 10 p.m. local time (2000 GMT).
PRICES
* On the New York Mercantile Exchange, October crude at 5:05 p.m. EDT (2105 GMT), was up 61 cents, or 0.86 percent at $71.71 a barrel. Earlier, it had settled up 21 cents, or 0.3 percent, at $71.31, trading from $70.66 to $72.52, highest intraday since $73.36 was reached on Aug. 31.
* In London, October Brent crude was up 67 cents, or 0.97 percent, at $70.09 a barrel. It had settled up 41 cents, or 0.59 percent, at $69.83, trading from $69.09 to $70.88.
* NYMEX October RBOB was unchanged at $1.8289 a gallon, after settling down 0.08 cent, or 0.04 percent, at $1.8281, trading from $1.8205 to $1.8567.
* NYMEX October heating oil was up 1.63 cents, or 0.91 percent, at $1.7988 a gallon. It had settled up 1.19 cents, or 0.67 percent, at $1.7944, trading from $1.7741 to $1.8253.
* The October/October RBOB crack spread ended at $5.47, down from $5.71 on Tuesday. The October/October heating oil crack spread ended at $4.05, rising from $3.77 on Tuesday.
* The spread between the current front month and the five-year forward crude contract ended at $11.79, narrowing from $12.12 on Tuesday. The October 2014 contract settled on Wednesday at $83.10, down 12 cents, or o.14 percent.
TECHNICALS
NYMEX crude 10-day/20-day moving average: $70.09/$70.52
Technical support/resistance:
NYMEX crude: $70.00/$73.50
NYMEX heating oil: $1.7444-$1.8206
NYMEX RBOB: $1.7882/$1.8696
For a full report on technicals, click on
MARKET NEWS
* Global oil demand through next year will be weaker than previously forecast while petroleum supplies will be higher, the U.S. government said in a revised outlook.
* Copper eased as the market worried that prices had risen beyond fundamentals, but expectations of stronger demand in the longer term limited losses.
* Saudi Oil Minister Ali al-Naimi said he was content with oil prices.
(Reporting by Gene Ramos and Robert Gibbons; Editing by David Gregorio) Keywords: MARKETS ENERGY NYMEX (gene.ramos@thomsonreuters.com; + 1 646 223 6054; Reuters Messaging: gene.ramos.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The American Petroleum Institute reported that crude stocks fell 7.2 million barrels to 336.3 million barrels in the week to Sept. 4, far more than the forecast in a Reuters poll for a 1.5 million barrel drawdown.
Distillate stocks, which include heating oil and diesel fuel, shot up 3.3 million barrels to 165.1 million barrels, the industry group said, far exceeding the forecast for an 800,000 barrel increase.
The API said gasoline stocks rose 571,000 barrels, to 207.5 million barrels, against the forecast for a 1.3 million barrel drawdown.
'The API stock draw, at 7.2 million barrels, is too big to be believed at this point and probably traders will be cautious. But the big build in distilates is also stunning and may offset the effects of the big crude stock draw.' said Phil Flynn, analyst at PFGBest Research in Chicago.
Flynn said traders will seek confirmation of the large crude draw when the U.S. Energy Information Administration (EIA) releases its own inventory data on Wednesday, at 11 a.m. EDT (1500 GMT).
Earlier, October crude futures settled slightly higher but well off session peaks as traders took profits after the dollar pared losses late while gold copper, and silver slid after a rally on Tuesday, analysts said.
Traders also took defensive positions ahead of weekly U.S. government inventory data and after the latest forecasts called for lower global oil demand, they said.
The U.S. dollar hit its lowest level in nearly a year against a basket of major currencies, as growing evidence of of a global recovery spurred a move into riskier trades.
U.S. stocks rose for a fourth straight day, sending the S&P 500 index to its best close so far this year as industrial and technology shares gained from a weak dollar.
OPEC ministers were expected to leave output unchanged at their meeting on Wednesday in Vienna after Saudi Arabia and others in the group said there was no need for action. The meeting started at close to 10 p.m. local time (2000 GMT).
PRICES
* On the New York Mercantile Exchange, October crude at 5:05 p.m. EDT (2105 GMT), was up 61 cents, or 0.86 percent at $71.71 a barrel. Earlier, it had settled up 21 cents, or 0.3 percent, at $71.31, trading from $70.66 to $72.52, highest intraday since $73.36 was reached on Aug. 31.
* In London, October Brent crude was up 67 cents, or 0.97 percent, at $70.09 a barrel. It had settled up 41 cents, or 0.59 percent, at $69.83, trading from $69.09 to $70.88.
* NYMEX October RBOB was unchanged at $1.8289 a gallon, after settling down 0.08 cent, or 0.04 percent, at $1.8281, trading from $1.8205 to $1.8567.
* NYMEX October heating oil was up 1.63 cents, or 0.91 percent, at $1.7988 a gallon. It had settled up 1.19 cents, or 0.67 percent, at $1.7944, trading from $1.7741 to $1.8253.
* The October/October RBOB crack spread ended at $5.47, down from $5.71 on Tuesday. The October/October heating oil crack spread ended at $4.05, rising from $3.77 on Tuesday.
* The spread between the current front month and the five-year forward crude contract ended at $11.79, narrowing from $12.12 on Tuesday. The October 2014 contract settled on Wednesday at $83.10, down 12 cents, or o.14 percent.
TECHNICALS
NYMEX crude 10-day/20-day moving average: $70.09/$70.52
Technical support/resistance:
NYMEX crude: $70.00/$73.50
NYMEX heating oil: $1.7444-$1.8206
NYMEX RBOB: $1.7882/$1.8696
For a full report on technicals, click on
MARKET NEWS
* Global oil demand through next year will be weaker than previously forecast while petroleum supplies will be higher, the U.S. government said in a revised outlook.
* Copper eased as the market worried that prices had risen beyond fundamentals, but expectations of stronger demand in the longer term limited losses.
* Saudi Oil Minister Ali al-Naimi said he was content with oil prices.
(Reporting by Gene Ramos and Robert Gibbons; Editing by David Gregorio) Keywords: MARKETS ENERGY NYMEX (gene.ramos@thomsonreuters.com; + 1 646 223 6054; Reuters Messaging: gene.ramos.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
