NEW YORK, June 9 (Reuters) - U.S. crude oil futures struck
a new seven-month intraday high in post-settlement trading on
Tuesday after the American Petroleum Institute's weekly
inventory data showed a much larger-than-expected crude stock
drawdown last week.
The API said domestic crude stocks fell 6.0 million barrels to 357.9 million barrels last week, citing a big drop in imports. The drawdown dwarfed the forecast in a Reuters poll of analyst for just a 400,000-barrel decline.
'This is a very bullish report, seeing that crude stocks and imports are down sharply and with refined products almost unchanged from the previous week,' said Peter Beutel, president of Cameron Hanover, in Stamford, Connecticut.
The API said gasoline stocks were up just 27,000 barrels, to 205.6 million barrels and distillate stocks were up a mere 19,000 barrels, to 150.7 million barrels.
Forecasts in the Reuters poll called for an 800,000 barrel increase in gasoline stocks and a 1.4 million barrel build in distillate supplies.
Earlier, front-month July crude settled above $70 for the first time in seven months as the dollar weakened and as traders positioned ahead of weekly petroleum inventory data.
Also supportive, the U.S. Energy Information Administration issued its latest forecast calling for higher world and U.S. oil demand this year.
The EIA will release its own weekly inventory report on Wednesday at 10:30 a.m. EDT.
PRICES
* On the New York Mercantile Exchange at the 5:15 p.m. EDT (2115 GMT), July crude was up $2.52, or 3.7 percent, at $70.61 a barrel, after hitting an intraday high of $70.69, the highest since prices hit $71.77 on Nov. 4. The day's low was $68.43.
* July crude earlier settled up $1.92, or 2.82 percent, at $70.01, the highest close since $70.53 was hit on Nov. 4.
* In London, July Brent crude was up $2.14, or 3.15 percent, at $70.02 a barrel, after hitting an intraday high of $70.06, the highest since Oct. 21's $73.29 high. It had settled up $1.74, or 2.56 percent at $69.62, the highest close since Oct. 21's $69.72. The day's low was $68.24.
* NYMEX July RBOB was up 4.52 cents, or 2.33 percent, at $1.9812 a gallon, after extending the day's high to $1.9815, short of Friday's $1.9945 peak. It had settled up 3.07 cents, or 1.59 percent, at $1.9667, the highest settlement since Oct. 9's $2.0273. The day's low was $1.9343.
* NYMEX July heating oil was up 4.99 cents, or 2.82 percent, at $1.8178 a gallon, also extending the day's high, to $1.8180, the highest since Nov. 24's $1.8302 high. It had settled up 3.97 cents, or 2.25 percent, at $1.8076, the highest close since Nov. 14's $1.8318. The day's low was $1.7756.
* The July/July RBOB crack spread ended at $12.59, down from $13.22 on Monday. The July/July heating oil crack spread ended at $5.91, down from $6.16 on Monday.
* The spread between the current front month and the five-year forward crude contract ended at $15.61, narrowing from $16.70 on Monday. The July 2014 contract settled at $85.62, up 83 cents, or 0.98 percent.
TECHNICALS
NYMEX crude 10-day/20-day moving average: $68.81/$62.91
Technical support/resistance:
NYMEX crude: $65.75/$70.32
NYMEX heating oil: $1.7255/$1.8139
NYMEX RBOB: $1.8790/$2.0000
For a report on technicals click
MARKET NEWS
* The dollar fell broadly as investors questioned whether the economy had improved enough to justify talk of higher U.S. interest rates by year-end.
* The EIA raised its forecast for 2009 world demand by 10,000 barrels per day from its May estimate of 83.67 million bpd, marking the first time since September it has increased its 2009 demand estimate.
* World demand will likely decline 1.8 million bpd this year from the 2008 level. The EIA expected global demand in 2010 would rise to 84.41 million bpd, 20,000 more than it forecast last month.
* In the United States, the EIA raised its 2009 consumption forecast by 10,000 bpd to 18.86 million bpd.
* On Wall Street, the Nasdaq rose after an improved outlook from Texas Instruments but news that 10 big banks will repay government bailout funds failed to move investors.
(Reporting by Gene Ramos; Editing by Marguerita Choy)
((gene.ramos@thomsonreuters.com; + 1 646 223 6054; Reuters Messaging: gene.ramos.reuters.com@reuters.net)) Keywords: MARKETS ENERGY NYMEX (For help: Click 'Contact Us' in your desk top, click here or call 1-800-738-8377 for Reuters Products and 1-888-463-3383 for Thomson products; For client training: training.americas@thomsonreuters.com; +1 646-223-5546) 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 API said domestic crude stocks fell 6.0 million barrels to 357.9 million barrels last week, citing a big drop in imports. The drawdown dwarfed the forecast in a Reuters poll of analyst for just a 400,000-barrel decline.
'This is a very bullish report, seeing that crude stocks and imports are down sharply and with refined products almost unchanged from the previous week,' said Peter Beutel, president of Cameron Hanover, in Stamford, Connecticut.
The API said gasoline stocks were up just 27,000 barrels, to 205.6 million barrels and distillate stocks were up a mere 19,000 barrels, to 150.7 million barrels.
Forecasts in the Reuters poll called for an 800,000 barrel increase in gasoline stocks and a 1.4 million barrel build in distillate supplies.
Earlier, front-month July crude settled above $70 for the first time in seven months as the dollar weakened and as traders positioned ahead of weekly petroleum inventory data.
Also supportive, the U.S. Energy Information Administration issued its latest forecast calling for higher world and U.S. oil demand this year.
The EIA will release its own weekly inventory report on Wednesday at 10:30 a.m. EDT.
PRICES
* On the New York Mercantile Exchange at the 5:15 p.m. EDT (2115 GMT), July crude was up $2.52, or 3.7 percent, at $70.61 a barrel, after hitting an intraday high of $70.69, the highest since prices hit $71.77 on Nov. 4. The day's low was $68.43.
* July crude earlier settled up $1.92, or 2.82 percent, at $70.01, the highest close since $70.53 was hit on Nov. 4.
* In London, July Brent crude was up $2.14, or 3.15 percent, at $70.02 a barrel, after hitting an intraday high of $70.06, the highest since Oct. 21's $73.29 high. It had settled up $1.74, or 2.56 percent at $69.62, the highest close since Oct. 21's $69.72. The day's low was $68.24.
* NYMEX July RBOB was up 4.52 cents, or 2.33 percent, at $1.9812 a gallon, after extending the day's high to $1.9815, short of Friday's $1.9945 peak. It had settled up 3.07 cents, or 1.59 percent, at $1.9667, the highest settlement since Oct. 9's $2.0273. The day's low was $1.9343.
* NYMEX July heating oil was up 4.99 cents, or 2.82 percent, at $1.8178 a gallon, also extending the day's high, to $1.8180, the highest since Nov. 24's $1.8302 high. It had settled up 3.97 cents, or 2.25 percent, at $1.8076, the highest close since Nov. 14's $1.8318. The day's low was $1.7756.
* The July/July RBOB crack spread ended at $12.59, down from $13.22 on Monday. The July/July heating oil crack spread ended at $5.91, down from $6.16 on Monday.
* The spread between the current front month and the five-year forward crude contract ended at $15.61, narrowing from $16.70 on Monday. The July 2014 contract settled at $85.62, up 83 cents, or 0.98 percent.
TECHNICALS
NYMEX crude 10-day/20-day moving average: $68.81/$62.91
Technical support/resistance:
NYMEX crude: $65.75/$70.32
NYMEX heating oil: $1.7255/$1.8139
NYMEX RBOB: $1.8790/$2.0000
For a report on technicals click
MARKET NEWS
* The dollar fell broadly as investors questioned whether the economy had improved enough to justify talk of higher U.S. interest rates by year-end.
* The EIA raised its forecast for 2009 world demand by 10,000 barrels per day from its May estimate of 83.67 million bpd, marking the first time since September it has increased its 2009 demand estimate.
* World demand will likely decline 1.8 million bpd this year from the 2008 level. The EIA expected global demand in 2010 would rise to 84.41 million bpd, 20,000 more than it forecast last month.
* In the United States, the EIA raised its 2009 consumption forecast by 10,000 bpd to 18.86 million bpd.
* On Wall Street, the Nasdaq rose after an improved outlook from Texas Instruments but news that 10 big banks will repay government bailout funds failed to move investors.
(Reporting by Gene Ramos; Editing by Marguerita Choy)
((gene.ramos@thomsonreuters.com; + 1 646 223 6054; Reuters Messaging: gene.ramos.reuters.com@reuters.net)) Keywords: MARKETS ENERGY NYMEX (For help: Click 'Contact Us' in your desk top, click here or call 1-800-738-8377 for Reuters Products and 1-888-463-3383 for Thomson products; For client training: training.americas@thomsonreuters.com; +1 646-223-5546) 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.