NEW YORK, Sept 1 (Reuters) - U.S. crude oil futures pared
losses slightly in post-settlement trading on Tuesday after the
American Petroleum Institute's inventory data showed a
larger-than-expected crude stock drawdown last week.
Earlier, crude futures settled lower for a second day in a row as Wall Street slid on worries over potential bank failures while the dollar rose as its safe-haven appeal was enhanced as equities tumbled, also pressuring crude oil futures.
The banking worries overshadowed earlier robust manufacturing and pending home sales data.
The API report showed that for the week to Aug. 28, domestic crude stocks fell 3.2 million barrels, to 343.5 million barrels, much larger than the forecast in a Reuters poll for just a 600,000-barrel drawdown.
Gasoline stocks dropped 2.8 million barrels to 206.9 million barrels, the API data showed, far larger than the
900,000
barrel drawdown forecast in the poll.
Distillate stocks, which include heating oil and diesel fuel, rose 920,000 barrels to 161.8 million barrels, more than the 600,000-barrel build predicted in the poll.
'The API data seems to imply a spike in demand. However, it is a little big puzzling because my forecast for a
3.3-million
barrel drawdown was predicated on imports being a little bit lower,' said Antoine Halff, first vice president, at Newedge USA LLC in New York. Crude imports rose, the API data showed.
'The API data on products are bullish as they seem to imply healthier demand via deliveries (but) whether the API data are supported by the DOE's own data tomorrow remains to be seen,' he added.
The U.S. Energy Information Administration will release its inventory report on Wednesday at 10:30 a.m. EDT (1430 GMT).
The U.S. manufacturing sector grew in August for the first time in more than a year and a half, while pending home sales surged to a two-year high in July.
Early support for crude came from China, where the official purchasing managers index for August reached a 16-month high, according to surveys released on Tuesday.
U.S. equities fell, spooked by uncertainty over the health
of banks and worries that the explosive rally since March may have run ahead of economic reality.
The dollar and the yen rose as fears of further U.S. bank failures overshadowed the U.S. manufacturing data.
PRICES
* On the New York Mercantile Exchange, at the 5:15 p.m. EDT (2215 GMT) close of electronic trading, October crude was down $1.74, or 2.49 percent, at $68.22 a barrel. It had settled down $1.91, or 2.73 percent, at $68.05, trading $68 to $71.37.
* In London, October Brent crude was down $1.73, or 2.48 percent, at $67.92 a barrel. It had settled down $1.92, or 2.76 percent, at $67.73, trading $67.61 to $71.05.
* NYMEX October RBOB was off 1.49 cents, or 0.82 percent, at $1,7945 a gallon. It had settled down 2.77 cents, or 1.53 percent, at $1.7822, trading $1.7800 to $1.8559.
* NYMEX October heating oil was down 4.50 cents, or 2.49 percent, at $1.7635 a gallon. It had settled 4.96 cents lower, or 2.74 percent, at $1.7589, trading from $1.7576 to $1.8481.
* The October/October RBOB crack spread ended at $6.80, rising from $6.06 on Monday. The October/October heating oil crack spread ended at $5.82, down from $6 on Monday.
* The spread between the current front month and the five-year forward crude contract was at $14.44, widening from $14.01 on Monday. The October 2014 contract settled on Tuesday at $82.49, down $1.48, or 1.76 percent.
MARKET NEWS
* Tropical Storm Erika formed in the Atlantic Ocean east of the Caribbean's northern Leeward Islands on Tuesday, the U.S. National Hurricane Center said.
* U.S. retail gasoline demand dropped 2.9 percent week-on-week as Tropical Storm Danny depressed gasoline demand on the East Coast, according to a MasterCard SpendingPulse report released Tuesday.
* BP Products North America reported flaring at its refinery in Texas City, Texas, affecting an ultraformer and other units, the company said in a filing with state regulators.
(Reporting by Gene Ramos and Rebekah Kebede; Editing by Christian Wiessner)
((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.
Earlier, crude futures settled lower for a second day in a row as Wall Street slid on worries over potential bank failures while the dollar rose as its safe-haven appeal was enhanced as equities tumbled, also pressuring crude oil futures.
The banking worries overshadowed earlier robust manufacturing and pending home sales data.
The API report showed that for the week to Aug. 28, domestic crude stocks fell 3.2 million barrels, to 343.5 million barrels, much larger than the forecast in a Reuters poll for just a 600,000-barrel drawdown.
Gasoline stocks dropped 2.8 million barrels to 206.9 million barrels, the API data showed, far larger than the
900,000
barrel drawdown forecast in the poll.
Distillate stocks, which include heating oil and diesel fuel, rose 920,000 barrels to 161.8 million barrels, more than the 600,000-barrel build predicted in the poll.
'The API data seems to imply a spike in demand. However, it is a little big puzzling because my forecast for a
3.3-million
barrel drawdown was predicated on imports being a little bit lower,' said Antoine Halff, first vice president, at Newedge USA LLC in New York. Crude imports rose, the API data showed.
'The API data on products are bullish as they seem to imply healthier demand via deliveries (but) whether the API data are supported by the DOE's own data tomorrow remains to be seen,' he added.
The U.S. Energy Information Administration will release its inventory report on Wednesday at 10:30 a.m. EDT (1430 GMT).
The U.S. manufacturing sector grew in August for the first time in more than a year and a half, while pending home sales surged to a two-year high in July.
Early support for crude came from China, where the official purchasing managers index for August reached a 16-month high, according to surveys released on Tuesday.
U.S. equities fell, spooked by uncertainty over the health
of banks and worries that the explosive rally since March may have run ahead of economic reality.
The dollar and the yen rose as fears of further U.S. bank failures overshadowed the U.S. manufacturing data.
PRICES
* On the New York Mercantile Exchange, at the 5:15 p.m. EDT (2215 GMT) close of electronic trading, October crude was down $1.74, or 2.49 percent, at $68.22 a barrel. It had settled down $1.91, or 2.73 percent, at $68.05, trading $68 to $71.37.
* In London, October Brent crude was down $1.73, or 2.48 percent, at $67.92 a barrel. It had settled down $1.92, or 2.76 percent, at $67.73, trading $67.61 to $71.05.
* NYMEX October RBOB was off 1.49 cents, or 0.82 percent, at $1,7945 a gallon. It had settled down 2.77 cents, or 1.53 percent, at $1.7822, trading $1.7800 to $1.8559.
* NYMEX October heating oil was down 4.50 cents, or 2.49 percent, at $1.7635 a gallon. It had settled 4.96 cents lower, or 2.74 percent, at $1.7589, trading from $1.7576 to $1.8481.
* The October/October RBOB crack spread ended at $6.80, rising from $6.06 on Monday. The October/October heating oil crack spread ended at $5.82, down from $6 on Monday.
* The spread between the current front month and the five-year forward crude contract was at $14.44, widening from $14.01 on Monday. The October 2014 contract settled on Tuesday at $82.49, down $1.48, or 1.76 percent.
MARKET NEWS
* Tropical Storm Erika formed in the Atlantic Ocean east of the Caribbean's northern Leeward Islands on Tuesday, the U.S. National Hurricane Center said.
* U.S. retail gasoline demand dropped 2.9 percent week-on-week as Tropical Storm Danny depressed gasoline demand on the East Coast, according to a MasterCard SpendingPulse report released Tuesday.
* BP Products North America reported flaring at its refinery in Texas City, Texas, affecting an ultraformer and other units, the company said in a filing with state regulators.
(Reporting by Gene Ramos and Rebekah Kebede; Editing by Christian Wiessner)
((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.