Oil Rises From One Month Low on Speculation Demand to Increase

Crude oil rose from a one month low on speculation demand will increase as the global economy recovers from its worst recession since World War II. A report today in the U.S., the world’s largest oil user, will probably show New York manufacturing expanded for a fourth month in October, based on the median estimate in a Bloomberg survey of economists. Oil also rose as the dollar declined, increasing the investment appeal of commodities and pushing up the price producers must seek to maintain purchasing power.

Oil “has been a trade based on the recovery story and that hasn’t changed,” said Toby Hassall, a research analyst with CWA Global Markets in Sydney. “The weakness in the U.S. dollar should remain a pretty supportive factor.” Crude oil for December delivery rose as much as 72 cents, or 0.9 percent, to $77.07 a barrel in after hours electronic trading on the New York Mercantile Exchange. It was at $77 at 8:29 a.m. in Singapore. The contract fell 59 cents to $76.35 a barrel on Nov. 13, the lowest settlement since Oct. 14, after an unexpected decline in U.S. consumer confidence. Prices fell 1.4 percent last week as U.S. jobless claims increased, fuel stockpiles rose and the nation’s refiners reduced operating rates to a 13 month low.....Read the entire article.

Oil Rises After Unexpected Decline in U.S. Crude Inventories

Crude oil rose after a government report showed that U.S. inventories unexpectedly dropped as imports declined to a two month low. Stockpiles of crude oil fell 3.94 million barrels to 335.9 million last week, the Energy Department said today. A 1.5 million barrel gain was forecast, according to the median of responses in a Bloomberg News survey of analysts. Oil also advanced as equities gained and a weaker U.S. dollar bolstered the appeal of commodities as an alternative investment.
“The inventory report today was definitely supportive,” said Tom Bentz, a senior energy analyst at BNP Paribas Commodity Futures Inc. in New York. “Prices were already up because of the weak dollar and rising stocks. These numbers just added to the upward momentum.”

Crude oil for December delivery rose 59 cents, or 0.7 percent, to $80.19 a barrel at 2:12 p.m. on the New York Mercantile Exchange. Futures touched $81.06, the highest since Oct. 26. Prices are up 80 percent this year. Oil traded at $80.13 before the release of the supply report at 10:30 a.m. in Washington. “It is very hard to justify oil going from $30 to above $80 based only on the fundamentals of supply and demand,” Nouriel Roubini, the economist who predicted the global economic crisis, said today at the Inside Commodities Conference in New York. Oil touched $32.40 in December. Current prices are “in part” a bubble.....Read the entire article.

Crude Oil Tumbles After Unexpected Increase in Gasoline Supply

Crude oil fell more than $2 a barrel after a government report showed an unexpected increase in U.S. gasoline stockpiles and crude supplies rose to a two month high. Gasoline inventories climbed 1.62 million barrels last week, the Energy Department said. A 1 million barrel decline was forecast, according to a Bloomberg News survey. Crude oil inventories rose as imports advanced the first time in five weeks. Oil also dropped as the dollar gained against the euro.

“The gasoline number was a big surprise and makes people less optimistic about the economy and demand,” said Sean Brodrick, natural resource analyst with Weiss Research in Jupiter, Florida. “You are also seeing strength in the dollar, further weakening the oil market.” Crude oil for December delivery fell $2.14, or 2.7 percent, to $77.41 a barrel at the 2:30 p.m. close of floor trading on the New York Mercantile Exchange. Futures touched $77.23, the lowest since Oct. 16. Prices have gained 74 percent from the end of 2008 and reached a one-year.....Read the entire article.

Crude Oil Futures May Decline on Ample Stockpiles, Survey Shows

Crude oil futures may fall next week on speculation that U.S. inventories are sufficient to meet weakening demand. Eighteen of 36 analysts, or 50 percent, said oil will drop through Oct. 30. Twelve respondents, or 33 percent, forecast that the market will rise and six said prices will be little changed. Last week, analysts were split over whether prices would rise or fall.

“There is significant downside risk for crude oil,” said Tim Evans, an energy analyst with Citi Futures Perspective in New York. “Inventories remain high and demand is still weak.” Crude oil stockpiles rose 1.31 million barrels to 339.1 million last week, the U.S. Energy Department said in a report Oct. 21. The gain left inventories 9.4 percent above the five year average for the period. Supplies of distillate fuel, a category that includes heating oil and diesel, were 30 percent higher than average, the department said.....Read the entire article.

Oil Surges to One Year High on U.S. Gasoline Supply Decline

Crude oil rose above $81 a barrel in New York for the first time in a year and gasoline surged after a U.S. Energy Department report showed a greater than forecast drop in supplies of the motor fuel. Gasoline stockpiles fell 2.21 million barrels, more than twice the median of analyst forecasts, to 206.9 million barrels in the week ended Oct. 16, according to the department’s report. Oil also advanced as U.S. equities increased and the dollar slipped against the euro, bolstering the appeal of commodities.

“The gasoline number has clearly changed the landscape,” said John Kilduff, senior vice president of energy at MF Global in New York. “The industry is seen constraining fuel supply, which is underpinning the market.” Crude oil for December delivery climbed $2.52, or 3.2 percent, to $81.64 a barrel at 12:59 p.m. on the New York Mercantile Exchange. Futures touched $81.73, the highest since Oct. 14, 2008. Prices are up 82 percent this year.

Oil traded at $78.76 a barrel before the release of the report at 10:30 a.m. in Washington. Gasoline for November delivery climbed 5.78 cents, or 2.9 percent, to $2.0455 a gallon in New York. Futures touched $2.0534, the highest since Aug. 31. Prices are up for an eighth day.....Read the entire article.

Crude Oil Declines on Concern U.S. Economic Recovery May Stall

Crude oil declined, paring this week’s gain, as a gauge of U.S. manufacturing unexpectedly fell, jobless claims rose and a stronger dollar bolstered skepticism about the recovery in the biggest energy consuming nation. Oil snapped two days of increases after the number of Americans filing first time claims for unemployment benefits climbed and a report showed manufacturing dropped lower than projected by economists. Oil also fell as the dollar rose to a three week high against the euro.

“Commodities overall took a hit from that negative turn in macro sentiment, combined with the advancing dollar,” said Toby Hassall, a research analyst at CWA Global Markets PTY in Sydney. Crude oil for November delivery dropped as much as 72 cents, or 1 percent, to $70.10 a barrel in electronic trading on the New York Mercantile Exchange, and was at $70.14 at 8:54 a.m. Singapore time. Yesterday, the contract rose 21 cents to settle at $70.82.....read the entire article

Crude Oil Drops Below $69 After Unexpected U.S. Supply Gain

Crude oil fell below $69 a barrel in New York after a U.S. Energy Department report showed an unexpected increase in stockpiles as refineries idled units for seasonal maintenance and fuel demand dropped. Inventories climbed 2.86 million barrels to 335.6 million last week, the report showed. A decline of 1.4 million barrels was forecast, according to the median of 17 analyst responses in a Bloomberg News survey. Supplies of gasoline and distillate fuel, a category that includes heating oil and diesel, rose more than estimated.

“These numbers are bearish across the board,” said Bill O’Grady, chief market strategist at Confluence Investment Management in St. Louis. “We’ve been in a $60 to $75 range since early July. Prices should go down and test the bottom end of the range after these numbers.” Crude oil for November delivery fell $2.59, or 3.6 percent, to $68.96 a barrel at 10:49 a.m. on the New York Mercantile Exchange. Futures touched $68.57, the lowest since Sept. 15.....Read the entire article

Oil Trades Near $72 After Supplies Drop to Lowest Since January

Oil traded near $72 a barrel in New York after the U.S. Energy Department reported that crude stockpiles in the biggest energy consuming nation dropped to the lowest level since January. Crude inventories fell 4.73 million barrels, the weekly report showed yesterday, more than the 2.5 million barrel decline forecast in a Bloomberg News analyst survey.

Prices also gained as the dollar declined to the weakest level in almost a year and as global equities advanced, spurring expectations of improving fuel demand.“The gains in equities support optimism for the economic recovery that would drive oil demand and lead to supply tightness,” said Victor Shum, a senior principal at consultants Purvin & Gertz Inc. in Singapore.....Read the entire article

Oil Rises as Weaker Dollar Encourages Buying, Equities Climb

Crude oil rose for a second day as a weaker dollar encouraged investors to buy commodities and stronger equity markets signaled optimism the economic recovery remains on track. Oil rose, tracking stock markets in Europe and Asia, as the Group of 20 nations agreed on steps to shore up the global financial system. The U.S. currency weakened against the euro for a second day. All 26 analysts surveyed by Bloomberg News predicted OPEC will maintain its production target at 24.845 million barrels a day at a Sept. 9 meeting in Vienna. “Oil is a bit supported by the weaker dollar and stronger equities,” said Eugen Weinberg, a senior analyst with Commerzbank AG in Frankfurt. “We know that OPEC will not cut, the question is how this will be taken by the market”.....Read the entire article

Bloomberg Technical Analysis: Oil Uptrend Intact Until a Drop Below $66

Crude oil, which fell from a 10 month high of $75 a barrel in New York last week, remains in an uptrend and a sustained move lower isn’t likely unless prices settle below $66, National Australia Bank Ltd. said. Oil may climb to its recent highs in coming weeks even as the volatility in prices reflected uncertainty among traders, according to Gordon Manning, a Sydney based technical analyst. He correctly predicted Aug. 5 that the market wouldn’t settle below $66 a barrel on its way to a new high for 2009. “It’s not a downtrend in my books,” Manning said in a phone interview today. “It certainly hasn’t pushed on with the sort of aggression that I thought it might do, but there’s not enough damage to really get too worried”.....Read the complete article

Industry Worries Rise As Natural Gas Sags

Despite recent cutbacks in production, natural gas prices are at a seven year low and the U.S. still faces surpluses, fueling concern the industry has yet to hit bottom. At the same time, oil and gas producers are beginning to see operational costs creep up again after pushing suppliers to lower prices for products and services in recent months, putting further pressure on margins, an industry analyst said Wednesday at the NAPE summer conference in Houston. "This is a problem for all of us at the moment," Bob Fryklund, vice president of IHS Cambridge Energy Research Associates, told a ballroom of oil and gas professionals during a panel discussion at the conference, formerly known as the North American Prospect Expo.....Complete Story

Sinopec’s Net Surges on Fuel Prices; Beats Estimates

China Petroleum & Chemical Corp., Asia’s biggest refiner, said first-half profit rose more than four fold, beating estimates, after the government eased curbs on fuel prices and the nation’s economic recovery spurred demand. Net income increased to 33.2 billion yuan ($4.86 billion), or 0.381 yuan a share, from a restated 7.7 billion yuan, or 0.057 yuan a share, a year earlier, Sinopec, as China Petroleum is known, said in a statement to the Hong Kong stock exchange today. That compares with a 27 billion yuan median estimate in a Bloomberg survey of four analysts. The gain contrasts with earnings declines at Royal Dutch Shell Plc and Exxon Mobil Corp., the world’s biggest oil companies, after.....Complete Story

Petrobras Profit Falls to 7.73 Billion Reais on Oil

Petroleo Brasileiro SA, Brazil’s state controlled oil company, reported second quarter profit fell less than analysts estimated amid a decline in oil prices. Consolidated net income dropped to 7.73 billion reais ($4.19 billion), or 88 centavos a share, from 9.72 billion reais, or 1.11 reais, in the year earlier period, the Rio de Janeiro based company known as Petrobras said today in a statement. Six analysts surveyed by Bloomberg had forecast an average profit of 6.23 billion reais. Petrobras is seeking to increase production to boost cash generation, as the average price of crude in the quarter fell 47 percent to $63.01 a barrel from a year earlier.....Complete Story

Can Exxon Find Future Growth?

ExxonMobil, suffering like the rest of its Big Oil peers from lower oil and natural gas prices, reported plunging earnings this morning. Net income for the second quarter came in at $3.95 billion, a 62% drop over the same quarter last year. At 81 cents a share, Exxon's results undershot analyst expectations. Yet shareholders received their usual largesse from Exxon: $7 billion in dividends and stock buybacks even while the company suffered a 4% decline in oil and gas production to a current 3.7 million barrels a day.....Complete Story

Chevron Profits Tumble 71 pct Because of Cheap Oil

Chevron Corp. says its second quarter profit fell 71 percent as demand for crude oil and gasoline plunged. Chevron, the second largest U.S. oil company, said Friday its net income amounted to $1.75 billion, or 87 cents per share, for the three-month period that ended June 30. That compared with $5.98 billion, or $2.90 per share, in the same period last year. The company said its net income suffered from a weak U.S. dollar, amounting to $453 million in reduced earnings. That compares with an income benefit of $126 million in the same period last year. Analysts surveyed by Thomson Reuters expected earnings of 95 cents per share. Those estimates typically exclude one time items.....Your keyword

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Schlumberger Profit Falls as Clients Slash Budgets

Schlumberger Ltd., the world’s largest oilfield-services provider, said second-quarter profit fell 57 percent after a plunge in energy prices prompted petroleum producers to cut spending. Net income dropped to $613 million, or 51 cents a share, from $1.42 billion, or $1.16, a year earlier, Schlumberger, based in Houston and Paris, said today in a statement. Excluding costs for job cuts, profit was 68 cents a share, 4 cents higher than the average of 24 analyst estimates compiled by Bloomberg. Sales fell 18 percent to $5.53 billion.....Complete Story



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Oil Little Changed as Equities Gain, China’s Economy Revives

Crude oil was little changed after rising yesterday as equities rallied and China’s economy showed signs of rebounding from its weakest growth in almost a decade. U.S. stocks gained 3 percent after Intel Corp. forecast sales that beat analysts’ estimates and gauges of manufacturing improved. China’s gross domestic product expanded 7.9 percent in the second quarter from a year earlier, the country’s statistics bureau said today. That was more than the 7.8 percent median estimate of 20 economists surveyed by Bloomberg News.....Complete Story

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U.S. Gasoline Falls to $2.5573 a Gallon, Survey Finds

The average price of regular gasoline at U.S. filling stations fell to $2.5573 a gallon as supplies of the fuel rose and crude oil prices dropped amid weakened demand.
Gasoline dropped 10.4 cents in the two weeks ended July 10, according to a survey of 5,000 filling stations nationwide by Trilby Lundberg, an independent gasoline analyst.
“These lower prices are from lower crude oil prices and from reduced demand from the poor economy,” Lundberg said in an interview today.....Complete Story

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OPEC Oil Price Plummets

The oil price of the Organization of the Petroleum Exporting Countries (OPEC) took a steep fall of $2.46 at the start of the week,the Vienna based group announced Tuesday. The basket price for OPEC produced oil dropped to $63.66 Monday. Since the end June, it has shed $5.90. Analysts have linked the current downward trend to lower than forecast economic data from the United States, particularly last week's bleak jobless figures. OPEC's 12 member countries produce more than a third of the world's crude oil.

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Crude Oil Rises to Highest Since November on Manufacturing Gain

Crude oil rose to the highest level since November as China’s manufacturing expanded and U.S. industrial output shrank less than forecast, signaling that fuel demand may increase. Oil advanced as much as 3.6 percent and equities rallied after China’s Purchasing Manager’s Index showed that manufacturing in May climbed for a third month. The U.S. dollar fell to its lowest against the euro since December, enhancing the appeal of commodities as an alternative investment.

“This is all about recovery expectations,” said Tom Bentz, a senior energy analyst at BNP Paribas Commodity Futures Inc. in New York. “It looks like manufacturing is recovering in a number of countries, which is feeding into the belief that the worst is behind us. It doesn’t hurt.....Complete Story



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