Oil Prices back up to $53

Discussion in 'The Stock Market (NYSE, NASDAQ and AMEX)' started by autumnblue, May 10, 2005.

  1. autumnblue

    autumnblue New Member Original Member

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    Reuters
    Oil prices leap, outage adds to fears
    Tuesday May 10, 11:29 am ET


    LONDON (Reuters) - Oil prices leapt to $53 a barrel on Tuesday after news of a big refinery outage in the United States added to fears about a shortage of refined products and offset the impact of swelling crude supplies.
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    U.S. light crude (CLc1) was trading 67 cents higher at $52.70 a barrel, off a peak of $53. Brent crude oil in London (LCOc1) gained 81 cents to $52.10.

    News that ConocoPhillips' 250,000 barrels per day refinery in Belle Chasse, Louisiana, was shut down because of a power outage added to the bullish mood.

    But analysts said concerns went beyond immediate problems. They said refinery capacity was generally inadequate and that stocks might not build enough to meet peak demand later in the year.

    "Seasonally firm demand, especially from the U.S., is expected in the fourth quarter in winter. Demand levels are expected to grow and the question remains whether the high OPEC output can meet the increase," said Tony Nunan of Mitsubishi Corp in Tokyo.

    "It's still about the third and fourth quarter. It's still about product refining capacity," said Deborah White, senior economist of SG Commodities in Paris.

    She cited Algerian Oil Minister Chakib Khelil's comments at the weekend when he asked: "What's the use of having a lot of oil if you can't refine it or cannot stock enough products to be used in the winter time?"

    OPEC TO CARRY ON PUMPING

    U.S. crude prices are less than $6 below last month's record high of $58.28, even though OPEC producers have raised output to a 25-year high.

    OPEC President Sheikh Ahmad al-Fahd al-Sabah said on Tuesday the 11 members of the Organization of the Petroleum Exporting Countries, including Iraq, which does not have a formal production quota, will produce 30.3 million barrels per day this month, a rise of 600,000 bpd from April.

    He also said they would produce at the same level in June.

    "I think that based on the market and the market needs we need to continue with 30.3 million until the third quarter because the prices have started to stabilize," he told Reuters.

    OPEC has been seeking to boost stocks to prevent a supply crunch during the peak demand northern hemisphere winter in the fourth quarter and U.S. inventories have swelled to the highest level for nearly six years.

    A Reuters survey of analysts found that when the U.S. Energy Information Administration releases its next set of stocks data on Wednesday, it would show crude inventories have risen by a further 1.8 million barrels in the week ended May 6, after hitting 327 million barrels the week before.

    The build would be the 12th in 13 weeks, but even a prolonged period of inventory increase might not be enough.

    Adding to the Algerian minister's remarks, Qatar Energy Minister Abdullah al-Attiyah said on Monday the global oil market was amply supplied for now, but he was concerned about supplies in the fourth quarter.

    "For sure, we are concerned about the fourth quarter," he said.
     
  2. freeye

    freeye Member Original Member

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    would like to know of one or more gurus i may follow on the price of oil, gas. if anyone could post it would be appreciated.
     
  3. jenniferpayne

    jenniferpayne New Member Original Member

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