AP: Crude Oil Reserves Expected to Grow

The government is expected to report Wednesday a 1.1 million barrel increase in commercial crude oil supplies for the week ended Aug. 20, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.

The Energy Information Administration releases its weekly report at 10:30 a.m. EDT.

Platts said analysts predicted gasoline stockpiles will shrink by 875,000 barrels, distillate stocks, including diesel and heating oil, will increase by 950,000 barrels and refinery utilization will dip by 0.5 percentage point to 89.5 percent.

A reading above or below estimates can influence market trading.

For the week that ended Aug. 13, the department said crude supplies shrank by 800,000 barrels to 354.2 million barrels; gasoline inventories were nearly unchanged at 223.3 million barrels and inventories of distillate fuel rose by 1.1 million barrels to 174.2 million barrels.


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Crude Oil Prices Climb as Monthly Jobs Report Looms

Oil prices rose on Wednesday as investors began to place bets ahead of Friday's monthly jobs report that figures to provide fresh clues about the strength of the rebounding economy and demand for oil. At the same time, gasoline pump prices across the country continued their slow slide toward levels not seen since a year ago. Benchmark crude for July delivery climbed 90 cents at $73.48 a barrel on the New York Mercantile Exchange. The contract fell $1.39 to settle at $72.58 on Tuesday.

Retail gasoline prices fell for the 27th straight day, dropping 0.4 cent overnight to a national average of $2.723 per gallon, according to AAA, Wright Express and Oil Price Information Service. Prices have dropped 4.8 cents in the past week and 17.2 cents in the past month. Prices remain 19.8 cents over year ago levels. Oil prices have been supported by recent economic data that have come in better than expected, including a report Wednesday that showed pending home sales at their highest level in April since October. Demand for crude products also has been increasing.

The latest read on how the U.S. economy is doing comes Friday when the unemployment report for May is released. "If this market is disappointed, it could be a new leg down for gas prices," said Phil Flynn of PFGBest. Rising stock markets helped oil prices on Wednesday. The Dow Jones Industrial Average was up about 120 points at midday. The NASDAQ and the S&P 500 posted gains as well. Oil and gasoline prices have fallen about 16 percent in the past month, even as the spill in the Gulf of Mexico worsens. Tankers bringing imported oil to Gulf ports and taking refined product out continue to work around the huge slick at the mouth of the Mississippi River.

In other Nymex trading in July contracts, heating oil rose 3.99 cents to $2.0103 a gallon, and gasoline added 4.67 cents to $2.292 a gallon. Natural gas was up 14.3 cents at $4.391 per 1,000 cubic feet. In London, the Brent crude July contact was up $1.50 at $74.21 on the ICE futures exchange.....Here's more AP business news!

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Saudi Arabia Preparing for oil Demand to Peak

A top Saudi energy official expressed serious concern Monday that world oil demand could peak in the next decade and said his country was preparing for that eventuality by diversifying its economic base. Mohammed al-Sabban, lead climate talks negotiator, said the country with the world's largest proven reserves of conventional crude is working to become the top exporter of energy, including alternative forms such as solar power.

Saudi Arabia was among the most vocal opponents of proposals during the climate change talks in Copenhagen. And al-Sabban criticized what he described as efforts by developed nations to adopt policies biased against oil producers through the imposition of taxes on refined petroleum products while offering huge subsidies for coal _ a key industry for the United States. Al-Sabban said the potential that world oil demand had peaked, or would peak soon, was an "alarm that we need to take more seriously" as Saudi charts a course for greater economic diversification.

"We cannot stay put and say 'well, this is something that will happen anyway," al-Sabban said at the Jeddah Economic Forum. The "world cannot wait for us before we are forced to adapt to the reality of lower and lower oil revenues," he added later.

Some experts have argued that demand for oil, the chief export for Saudi Arabia and the vast majority of other Gulf Arab nations, has already peaked. Others say consumption will plateau soon, particularly in developed nations that are pushing for greater reliance on renewable energy sources. With oil demand only now starting to pick up after it was pummeled by the global recession, some analysts say consumers may have learned to live permanently with a lower level of consumption.....Read the entire article.

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Oil Falls as Cold Eases Grip

Oil prices fell for a second day Tuesday as a global cold spell eased its grip and pulled crude back from a 15 month high. Crude prices have jumped 20 percent in the past month as the coldest weather in years took hold. The weather has boosted demand for heating oil in the U.S. Northeast, and natural gas almost everywhere.

Even in the South, where fruit crops were endangered by frigid temperatures, homeowners were reaching for the thermostat. Duke Energy said Tuesday that its customers in the Carolinas set a record on Monday for power demand during the winter. Yet the dollar has had more to do with rising energy prices than the cold.

Every time the dollar falls, more investors pile money into dollar based crude trades. Investors can get more crude for less if they hold euros or other relatively strong currencies. The government said Tuesday that it expects retail gasoline prices to average $2.84 per gallon this year, an increase of 49 cents from 2009. The Energy Information Administration said prices are likely to pass $3 per gallon during the spring or summer, largely because of rising crude prices.

Those prices are rising even though the EIA said gasoline consumption was flat in 2009 compared with 2008 when the economy was in a tailspin.....Read the entire article.

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Crude Oil Stockpiles Unexpectingly Climb by 1.3 Million Barrels

Crude inventories and gasoline supplies rose last week, the government said Wednesday. Crude inventories rose by 1.3 million barrels, or 0.4 percent, to 327.3 million barrels, which is half a percent above year ago levels, the Energy Department's Energy Information Administration said in its weekly report. Analysts had expected a drop of 1.6 million barrels for the week ended Jan. 1, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.

Gasoline inventories increased by 3.7 million barrels, or 1.7 percent, to 219.7 million barrels. That was above analyst expectations and 2.9 percent above year ago levels. Demand for gasoline over the four weeks ended Jan. 1 was 0.3 percent higher than a year earlier, averaging nearly 9 million barrels a day. At the same time, U.S. refineries ran at 79.9 percent of total capacity on average, a drop of 0.4 percentage point from the prior week. Analysts expected capacity to build to 81.05 percent.

Inventories of distillate fuel, which include diesel and heating oil, fell by 300,000 barrels to 159 million barrels for the week ended Jan. 1. Analysts expected distillate stocks to drop by 1.8 million barrels. Crude prices fell 72 cents to $81.05 per barrel on the New York Mercantile Exchange.....Read the entire article.

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Big Draw in Gas Supply Sends Energy Prices Jumping

Refineries that make gasoline and other fuels swiftly cut back on production last week, the government reported Thursday, sending energy prices jumping across the board. Energy markets had largely brushed off a winter weather forecast this week for major winter storms in the East and icy, cold conditions even between Atlanta and Dallas.

The Energy Information Administration, however, reported Thursday that gasoline in storage fell by more than 5 million barrels at a time when most energy experts expected supplies to grow yet again. Refiners have been idling facilities because of a lack of demand at the same time that others have been shut down for routine maintenance. Earlier Thursday, the dollar hit a 52 week low and the surprise report on gasoline may have led some people to believe supplies are growing tight, said oil analyst Tom Kloza said.

"The ignition switch for a rally got hit twice today," Kloza said. For consumers, that may mean a slight drift upward in pump prices but not much, experts believe.
Crude and gasoline prices have remained relatively stable for months with no clear signs of an economic rebound. Prices began to rise late last week when Alcoa, which kicks off the U.S. earning season, reported that it had returned to profitability after three straight quarterly losses.....read the entire article

Oil Hovers Above $68 as US crude Inventories Drop

(AP:LONDON) Oil prices hovered above $68 a barrel Wednesday after a two day plunge as a drop in U.S. crude inventories suggested demand may be recovering. Benchmark crude for October delivery was up 60 cents to $68.29 a barrel by midday European time in electronic trading on the New York Mercantile Exchange. The contract Tuesday lost $1.91 to settle at $68.05. Oil sank almost $5 a barrel in the first two days of the week as investors worried that a global economic recovery this year would be slow and may not justify the big rallies in stocks and commodities since March.

U.S. stock indexes fell about 2 percent Tuesday.

Investors were cheered somewhat when the American Petroleum Institute said late Tuesday that U.S. inventories plunged 3.2 million barrels last week. Analysts had expected the API numbers to drop 1.9 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.

The Energy Department reports mandatory supply figures later on Wednesday, while refiners voluntarily report the API numbers. There were also signs Tuesday that the U.S. economy the biggest consumer of oil is improving.

The Institute for Supply Management, a trade group of purchasing executives, said its manufacturing index rose in August, indicating an expansion for the first time since January 2008. And the National Association of Realtors said pending U.S. home sales rose to the highest level in more than two years.

In other Nymex trading, gasoline for October delivery rose 1.81 cents to $1.80 a gallon and heating oil gained 2.41 cents to $1.78 a gallon. Natural gas jumped 3.6 cents to $2.86 per 1,000 cubic feet.

In London, Brent crude was up 67 cents at $68.40.

Oil Climbs to New 2009 High

Oil prices jumped Friday to a new high for the year after Federal Reserve Chairman Ben Bernanke said that the U.S. economy is nearing a recovery and other economic data backed him up. Benchmark crude for October delivery surged $1.81 to $74.72 after Bernanke spoke at an annual Fed conference in Jackson Hole, Wyo. By midday, oil was trading at $73.91, topping the previous annual high of $73.23 set on June 11. Oil started climbing early in the morning after financial information company Markit said its composite purchasing managers' index showed the European economy was stabilizing.....Complete Story