Oil Holds Near $40 After U.S. Oil Stockpiles Rise
Feb 5th, 2009 | By Contrarian Profits | Category: Financial News, Oil Investment & Alternative EnergyU.S. crude stocks rise to 18-month high… U.S. data at 1330 GMT expected to show more job losses… OPEC signals it may cut output further…
Oil held around $40 a barrel on Thursday after U.S. crude stocks swelled to an 18-month high and investors anticipated more bleak economic data out of the world’s biggest fuel consumer.
The outlook for more huge job losses in the United States darkened the demand prospects there.
A global financial slowdown has cut demand and swollen fuel stocks, knocking more than $100 a barrel off the price of crude since its July 2008 peak of $147.
U.S. crude inventories jumped by 7.2 million barrels to an 18-month high last week, data from the U.S. Energy Information Administration showed, twice what analysts expected and the sixth straight weekly rise.
U.S. light crude for March delivery ticked up 2 cents to $40.34 a barrel at 1019 GMT, about $4 below London Brent crude for the same month, which gained 30 cents to trade at $44.45 a barrel.
U.S. crude has been locked between $39 and $49 a barrel for the past two weeks.
“Crude oil markets still seem to be trapped within a trading range, as market anticipation about OPEC cuts — both current and pending — is keeping something of a floor below prices,” MF Global said in a report.
“…The upside is capped by lingering concerns over the macro situation.”
Oil losses have been limited by signals this week from the Organization of the Petroleum Exporting Countries that it may cut oil production further in an attempt to bolster the market.
OPEC, worried that the global economic downturn is reducing oil demand and pressuring prices, has promised to reduce oil production by a total of 4.2 million barrels per day (bpd) from levels seen in September.
LONDON, Feb 5 (Reuters)
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