U.S. crude for October fell 79 cents to $71.26 a barrel by 12:40 p.m. EDT (1640 GMT), after falling $2.32 on Tuesday. Brent crude fell 49 cents to $71.33 a barrel after losing $2.44 the previous day.

The U.S. Energy Information Administration (EIA), the statistical arm of the Department of Energy, reported on Wednesday that crude stocks in the world’s largest energy consumer rose by 200,000 barrels last week.

While the build in crude stocks was nowhere near as large as the 4.3 million rise reported by the American Petroleum Institute on Tuesday, it still confounded initial market predictions for a 1.1 million barrel drop.

“We remain in a situation of massive over-supply, which is off the charts, but it does appear to be peaking,” Summit Energy analyst Brad Samples said.

Gasoline stocks fell by 1.7 million barrels last week according to the EIA, against expectations for a smaller 1 million barrel drop, while distillates rose by 800,000 barrels compared with predictions for a 300,000 barrel build.

SELL-OFF?

Investors took the opportunity to lock-in profits on Tuesday after crude touched the key psychological $75 mark for the first time since last October, crowning a near 130 percent jump in prices from the lows at the turn of the year.

Some analysts said the failure to break through the key level may signal that prices have topped out, with demand for oil still depressed by the global economic slowdown and signs of a broad recovery still murky.

“The price action of the past 24 hours would appear to favor additional price declines,” said Jim Ritterbusch, president of Ritterbusch & Associates.

Prices took some support from U.S economic data released on Wednesday showing a mild recovery in the housing market, but earlier data on durable goods orders suggested lingering weakness in the manufacturing sector.

Equity markets were mixed with Wall Street edging higher while European bourses generally dipped, highlighting the uncertainty surrounding the economic outlook.

Venezuela’s oil minister Rafael Ramirez said OPEC is unlikely to raise output at its September meeting, despite concerns from some quarters that oil prices are too high for a still fragile global economy.

“Inventories have declined but they remain above average. We need for them to come down to the average levels,” Ramirez said.

Another member of the Organization of the Petroleum Exporting Countries, Iran, said oil demand was set to increase next year by up to 1 million barrels per day after this year’s sharp decline.

Aug 26 (Reuters)

An OPEC report predicting it could take years for demand for its crude to recover from the financial crisis added to bearish sentiment.

U.S. light crude for August delivery dropped $1.24 to $61.69 a barrel by 1444 GMT. It settled $1.12 lower at 62.93 a barrel on Tuesday, ending a fifth straight day of losses.

London Brent crude fell $1.15 to $62.08.

U.S. government weekly data showed gasoline stocks had risen by 1.9 million barrels, more than expectations for a 600,000 barrel increase.

Distillate stocks, including diesel, climbed by 3.7 million barrels, compared with an expected two million barrel rise. They stood at their highest level in nearly 25 years.

Figures from the American Petroleum Institute (API) late on Tuesday also showed distillate stocks and gasoline stocks had risen more than expected.

“It looked like gasoline demand had started to get better and now suddenly looks bad. It could be for a couple of reasons: it could be a price response or it could just be that the economy is just not out of the woods yet,” said Tony Nunan, risk manager at Mitsubishi Corp in Tokyo.

Oil prices have dropped from peaks above $70 a barrel last month, the highest this year, as expectations of an early economic recovery have faltered and U.S. fuel stocks have risen in line with subdued demand.

REGULATORY FEARS

The market was also monitoring the meeting of the Group of Eight major industrialised nations in the central Italian city of L’Aquila, which continues until Friday.

Oil analysts largely dismissed the G8 calls for reduced volatility in energy markets.

They said a statement from U.S. regulator the CFTC this week that it was considering tougher position limits to try to curb speculation was far more significant. It could add to selling pressure, although it would take months for any regulatory changes to take effect, they said.

“It does dampen sentiment,” said Mike Wittner of Societe Generale.

Analysts said the impact would be greater on U.S. crude than on the European benchmark Brent, which is mostly overseen by British regulator the FSA.

Brent’s current premium to U.S. crude could also be explained by the disruption of supplies of Nigerian oil, which has helped to boost other Atlantic basin crudes, including Brent.

Nigeria’s most prominent militant group said on Wednesday it had sabotaged oil pipelines, as it deepened a six-week long offensive against Africa’s biggest energy industry.

The enforced shut-in of Nigerian crude has helped to tighten supplies from the Organization of the Petroleum Exporting Countries.

Discipline from the group has lapsed and compliance with agreed output curbs has been estimated at around 75 percent, down from peaks of roughly 80 percent earlier this year.

OPEC’s 2009 World Oil Outlook released on Wednesday said consumption of its crude would not return to 31 million barrels per day (bpd), the level it averaged in 2008 before the economic crisis cut oil use, until 2013.

In the medium term, consumption would fall to 84.2 million bpd this year from 85.6 million bpd last year, and rise to 87.9 million bpd by 2013, the report said. The 2013 figure was 5.7 million bpd less than previously expected.

LONDON (Reuters)

Caution was the order of the day, with the dollar rising against the euro in a seesaw session in which risk tolerance rose and then fell as investors weighed the outlook for growth and corporate earnings.

Data showed orders in Germany, Europe’s largest economy, rose at the strongest monthly pace in nearly two years in May. But economists said the yearly comparison would remain weak for some time.

Euro zone government bond prices fell and the Bund future retreated from seven-week peaks as heavy European supply of almost 14 billion euro cut safety bids for bonds.

Another decline on Wall Street rekindled a safety bid for U.S. government debt, offsetting worries about demand for this week’s sale of $73 billion in bonds.

Tumbling energy shares dragged down European and U.S. equity markets as oil fell more than 2 percent, pressured by investors’ caution over recovery and an expected increase in gasoline stocks during the heart of the U.S. driving season.

Exxon Mobil Corp fell 1.7 percent and Chevron Corp dropped 1.3 percent in U.S. trading, while Royal Dutch Shellshed 0.75 percent and Total lost 1.2 percent in Europe.

“The markets are in a consolidation mode,” said Andrew Bell, head of research at Rensburg Sheppards. “To propel the markets higher, we have got to see evidence of the turning point in earnings and of the recovery and economic growth moving from less bad to a little bit better.”

At 1:30 p.m. EDT (1730 GMT), the Dow Jones industrial average was down 67.41 points, or 0.81 percent, at 8,257.46. The Standard & Poor’s 500 Index was off 6.44 points, or 0.72 percent, at 892.28. The Nasdaq Composite Index lost 18.77 points, or 1.05 percent, at 1,768.63.

Disappointing UK industrial output data pulled shares lower in London, with utilities among top European decliners.

The FTSEurofirst 300  index of top European shares closed 0.8 percent lower at 826.36 points. The FTSE 100 closed down 7.91 points at 4,817, a fresh two-month low.

British manufacturing output unexpectedly fell 0.5 percent in May, official data showed, making it less likely the economy returned to growth in the second quarter.

Copper prices turned negative as concerns over demand and world growth persisted. Copper for three-months delivery in London traded at $4,930 a tonne.

Gold erased earlier gains to trade near break-even as the dollar recovered lost ground against a basket of currencies, reducing the precious metal’s appeal as an alternative asset.

Spot gold prices rose 20 cents to $924.20 an ounce and the U.S. Dollar Index  was up 0.25 percent at 80.584.

The euro was down 0.23 percent at $1.3942, while against the yen, the dollar fell 0.56 percent to 94.83.

An expected increase in U.S. gasoline stocks for the week ended July 3, ahead of the long U.S. Independence Day holiday weekend, pressured oil.

“Consumer confidence is weighed down by higher retail prices and rising unemployment and so the number of Americans taking to the road over the holiday weekend was probably lower than last year,” said Harry Tchilinguirian, senior oil analyst with BNP Paribas.

The benchmark interbank cost of borrowing euros fell to a new low on Tuesday as a banking system flush with funds remained reluctant to lend money into the real economy.

The benchmark 10-year U.S. Treasury note was up 11/32 in price to yield 3.47 percent. The 2-year U.S. Treasury note was little changed, yielding 0.94 percent.

Asian stocks edged up slightly but struggled, with the MSCI index of Asia-Pacific shares outside Japan rising 0.4 percent. Japan’s Nikkei share average <.N225> dipped 0.3 percent as a stronger yen hit exporter shares.

NEW YORK, July 7 (Reuters)

U.S. gasoline stocks rose by 3.9 million barrels in the week to June 19, well above analysts’ forecasts, as refiners cranked up output in the midst of the summer driving season.

Distillate stocks hit 10-year highs, while crude stocks showed a steep drop.

U.S. crude traded down 55 cents to $68.69 per barrel at 2:00 p.m. EDT (1800 GMT), reversing earlier gains. London Brent crude fell 49 cents to $68.31 a barrel.

“Crude futures are back down on the weight of a stronger dollar,” said Mark Waggoner, Excel Futures President from Huntington Beach, California. “The EIA inventory report also showed large increases in gasoline and distillate stocks and that’s dragging down crude.”

The U.S. dollar rose broadly and jumped against the Swiss franc as traders reported the Swiss National Bank was intervening in the market by selling the currency for dollars and euros. The rising dollar can pressure commodities denominated in the greenback.

Optimism over a potential economic recovery boosting flagging fuel demand has lifted oil prices from below $40 a barrel.

However, crude imports by No. 3 consumer Japan fell by 18.8 percent in May against last year, according to government data. EIA data showed total U.S. demand down 6.6 percent in the four weeks to June 19, compared with year-ago levels.

GEOPOLITICAL CONCERNS

Multiple militant attacks on pipelines and oil installations in OPEC member Nigeria recently have forced production stoppages at sites run by Agip , Chevron and Royal Dutch Shell , stoking supply concerns.

A senior official said Nigeria’s president will propose a 60-day amnesty program for militants in the Niger Delta on Thursday, in an effort to end years of attacks on Africa’s biggest oil and gas industry.

Traders were also keeping an eye on the worst civil unrest in 30 years in Iran, the world’s fifth-largest oil exporter, over a disputed presidential election.

Iran’s Supreme Leader Ayatollah Ali Khamenei declared on Wednesday that a disputed election result would stand.

NEW YORK, June 24 (Reuters)

U.S. crude for August was up 58 cents at $68.08, by 1212 GMT, off an earlier low of $66.37. U.S. crude for July delivery expired on Monday, settling down $2.62 at $66.93 a barrel.

London Brent crude rose 48 cents to $67.46.

The dollar fell more than 0.5 percent against a basket of currencies on Tuesday. A lower dollar can strengthen commodities denominated in the currency.

The market awaited U.S. weekly inventory data from the American Petroleum Institute due later on Tuesday and U.S. government oil stocks figures on Wednesday for clues on the demand outlook for the world’s top energy consumer.

A Reuters poll of analysts ahead of the government inventory data forecast crude stocks fell by 1.3 million barrels last week on lower imports, while gasoline stocks and distillates, including heating oil and diesel fuel, were seen rising.

The API will release its weekly stockpile data at 2030 GMT, while the U.S. Energy Information Administration will release its report on Wednesday at 1430 GMT.

Oil prices fell towards $45 a barrel on Tuesday as the market began to anticipate data showing rising fuel inventories that reflect economic slowdown.

Prices had earlier advanced more than a dollar, boosted partly by cold weather in top energy consumer the United States, plus signs OPEC oil supply cuts may have begun to bite.

U.S. light, sweet crude for March delivery fell 66 cents to $45.07 a barrel by 1259 GMT. It earlier touched a session high of $47.49 a barrel and a session low of $44.40.

U.S. crude has rebounded from below $33 a barrel in the past week.

London Brent crude fell 92 cents to $46.04 a barrel.

“The retreat toward the lower end of the trading range is suggests the market is anticipating stock builds in the API figures,” said Christopher Bellew of broker Bache Commodities Ltd.

The American Petroleum Institute (API), an industry body, has moved publication of its weekly inventory report to 2130 GMT on Tuesdays from Wednesdays, a day earlier than official government inventory data released on Wednesday.

The government data is forecast to show that U.S. crude oil stocks rose a further 2.7 million barrels last week, the fifth straight week of gains.

Colder weather is expected to help draw down distillate stocks by 800,000 barrels, according to a Reuters poll. Gasoline stocks are likely to have risen by 1.3 million barrels.

ABOVE LOWS

The U.S. cold snap has helped prices move up from lows earlier in January of $32.7 a barrel, but analysts say the recovery may be temporary.

“Unless OPEC production cuts in January were substantially greater than what we have assumed, it is still too early to be calling an end to this current bear market,” Goldman Sachs said in a research note.

Oil’s supply/demand picture remains weak, Goldman said, pointing to a large counter-seasonal stock build in the United States and extremely weak demand in China, the world’s second largest energy consumer.

Oil has dropped more than $100 from a record peak above $147 a barrel in July last year, depressed by falls in demand as the credit crisis has pushed the global economy towards recession.

Goldman said retail investors were moving into oil, attracted by its low price, so that speculative positions or “length” in the oil market is now larger at $45 a barrel than it was at $147.

The Organization of the Petroleum Exporting Countries has agreed to reduce supply by 4.2 million barrels per day since September to try to support prices. The producer group is due to meet next in March.

A cyclone off western Australia has shut down nearly half of the country’s oil output, but some operators said production was likely to resume by Wednesday as the storm weakens.

Later on Tuesday, U.S. President Barack Obama goes to Capitol Hill to campaign for an $825 billion economic stimulus package to be put to a House vote within days.

LONDON, Jan 27 (Reuters)

Oil fell a dollar to below $43 a barrel on Thursday on weak economic data from the United States and China, the world’s two largest oil consumers.

The focus will shift later in the session to weekly U.S. fuel stocks data, which is expected to show crude inventories rose for a fourth consecutive week, and higher gasoline inventories.

U.S. crude fell $1.10 to $42.45 at 1510 GMT. Earlier in the session prices rose as high as $45.10. London Brent was down 3 cents at $44.99.

Prices came under pressure from another round of gloomy economic data.

The number of U.S. workers filing new claims for jobless benefits rose by more than expected last week, while housing starts and permits fell to a record low in December, data showed.

China’s economy slowed sharply in the fourth quarter and Japan’s central bank on Thursday predicted two years of deflation as Asia’s largest economies buckle under the strain of the financial crisis.

U.S. crude oil stocks are expected to have risen by 1.4 million barrels and gasoline by 1.9 million barrels in weekly data due at 1600 GMT on Thursday.

Traders were looking for news of the oil storage levels at the Cushing, Oklahoma, delivery point for NYMEX crude, which have been a drag on the nearby contract for U.S. crude futures.

European equities also pared early gains to turn negative, pressuring crude prices, traders said. Microsoft earnings missed expectations, contributing to a weaker opening for U.S. stocks.

Investors have been watching moves in equity markets to try and gauge the resilience of the broader economy, as the global economic slowdown has curbed demand for fuel around the world.

LONDON, Jan 22 (Reuters)

Oil was higher on Wednesday, but cut back early gains after U.S. inventory data showed fuel stocks in the world’s largest energy consumer rose sharply last week.

U.S. crude for January delivery touched $45 a barrel on Tuesday, recovering from an overnight slump by more than 4 percent, but by 1618 GMT oil had trimmed gains to trade at $43.07, up $1.00.

London Brent crude was up 48 cents at $42.04.

U.S. crude oil inventories rose by 400,000 barrels to 320.8 million, with distillate and gasoline stocks also up, according to the U.S. Energy Information Administration (EIA). Refinery run rates rose to 3.1 percent to 87.4 percent.

“If you were an oil bear and you were looking for a Christmas gift, you got everything you wanted in this report,” said Phil Flynn, analyst at Alaron Trading in Chicago.

Rising fuel stocks in the United States and other consumer nations have heightened fears of slowing demand for fuel as the global economic slowdown starts to cut into consumption.

The market now looks to OPEC’s Dec. 17 meeting in Algeria where the group is expected to cut as much as 2 million barrels a day in a bid to shore up prices which have fallen by more than $100 dollars since peaking above $147 a barrel in July.

Russia’s energy minister on Wednesday said OPEC members were preparing a “significant cut” in oil production, and that Russian output was likely to decline in 2008 despite government attempts to stimulate production.

Sergei Shmatko also said Russia, the largest oil producer outside the producer group, would make its own proposal at the Algeria meeting, which it will attend as an observer.

“Sentiment rules the oil market at the moment, with most traders tracking equities,” said Andrey Kryuchenkov, vice president of commodities research at VTB Bank.

“A lot of people will wait to see how much OPEC will but by next week, and then whether then can comply with the quota cuts.”

China’s November crude oil imports hit a year low, as the world’s secong-largest oil user shipped in 13.36 million tonnes last month, official data showed, a 14.6 percent cut in daily volumes from October and 1.8 percent down on November last year.

U.S. weekly inventory report shows fuel stock rise sharply… Year-on-year rise in U.S. gasoline purchases- Mastercard… Russia says OPEC to make “significant cuts”

Chris Baldwin
LONDON, Dec 10 (Reuters)

Oil surged after a surprising weekly inventory report on crude stocks from the Energy Department that showed a decline of 4.6 million barrels for the week ended June 6. Supplies are now down 23.6 million barrels in just four weeks.

Energy also reported that gasoline stocks were up by 1 million barrels, and distillates were up by 2.3 million barrels. Refinery utilization stood at 88.6% of capacity, compared with 89.7% a week earlier.

Nevertheless, refiners’ utilization “has significantly improved over the last month as the gasoline crack spread has expanded mightily,” wrote Chris Lafakis, of Moody’s Economy.com. “Crack spread expansion has provided refineries with all the incentive they need to churn out extra gasoline.”

Crack spread is the margin that a refinery can earn by refining a barrel of oil into finished products such as gasoline.

There’s no way he’s going to “call for a top in this market,” wrote John Person, president of National Futures Advisory Service. “Not by a long shot … Unless we close back under the $118 level, I would continue to be a buyer in this market on substantial breaks like we did last week near the $122-to-$125 level.”

Source: Oil Comes Storming Back