Oil holds above $72 after big US crude drawdown
VIENNA — Oil prices held above $72 Thursday after jumping the previous day on an unexpected fall in U.S. crude inventories.
The drawdown of crude supplies suggests demand may be improving as the U.S. economy recovers from a severe recession.
Benchmark crude for September delivery was down 9 cents to $72.33 a barrel by noon European electronic trading on the New York Mercantile Exchange.
On Wednesday, the contract jumped $3.23 to settle at $72.42 after the Energy Information Administration said crude in storage fell by 8.4 million barrels last week. Gasoline held in storage fell as well.
Analysts expected the EIA numbers to gain 1.1 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.
“The outlook for the US economy looks pretty strong,” Christoffer Moltke-Leth, head of sales trading at Saxo Capital Markets in Singapore. “We expect a recovery in the second half, and that helps crude.”
Oil prices will likely test $75 a barrel soon, Moltke-Leth said.
Trader and analyst Stephen Schork also suggested oil soon could go up to $75 — and beyond.
“It’s do-or-die for the bears,” he wrote in his Schork Report. “If they are going to defend the range, than it will have to be here. If they fail, the path to $75, $80, $85 etc will be wide open.”
In other Nymex trading, gasoline and heating oil for September delivery were down by less then a penny at $2.03 and $1.91 a gallon. Natural gas for September delivery added more than 4 cents to fetch $3.16 per 1,000 cubic feet.
In London, Brent prices fell 41 cents to $74.18 a barrel on the ICE Futures exchange.
Associated Press writer Alex Kennedy contributed to this report from Singapore.
Related News
Energy Dept. says crude oil inventories fell last week while gas stockpiles roseOctober 7th, 2009 Crude oil stockpiles fall by 1 million barrelsNEW YORK — Crude inventories fell last week, while gasoline supplies grew, the government said Wednesday. Crude inventories fell by 1 million barrels, or 0.3 percent, to 337.4 million barrels, which is 10.9 percent above year-ago levels, the Energy Department's Energy Information Administration said in its weekly report.
Oil rises to above $67 in Asia despite increase in US crude inventoriesSeptember 30th, 2009 Oil above $67 in Asia despite high inventoriesSINGAPORE — Oil prices rose above $67 a barrel Wednesday in Asia despite an increase in U.S. crude inventories for a third week, which suggests consumer demand remains weak.
Oil falls to near $68 in Asia as US crude inventories unexpectedly jumpSeptember 23rd, 2009 Oil falls to near $68 as US crude supplies jumpSINGAPORE — Oil prices dropped to near $68 a barrel Thursday in Asia as an unexpected jump in U.S. crude inventories suggested consumer demand remains in the doldrums.
Oil rises above $72 in Asia as US crude inventories drop, dollar weakensSeptember 10th, 2009 Oil rises above $72 as US crude inventories plungeSINGAPORE — Oil prices rose above $72 a barrel Friday in Asia as a drop in U.S. crude inventories suggested demand may be picking up.
Oil steady near $68 in Asia amid mixed evidence on US crude demandSeptember 2nd, 2009 Oil steady near $68 amid mixed US demand signsSINGAPORE — Oil prices bobbed above $68 a barrel Thursday in Asia as mixed U.S. crude inventory data shed little light on demand.
Oil climbs higher in Asia after US crude inventories fallAugust 20th, 2009 Oil climbs in Asia after big US crude drawdownSINGAPORE — Oil prices climbed higher Thursday in Asia after jumping the previous day on an unexpected fall in US crude inventories. Benchmark crude for September delivery was up 18 cents to $72.60 a barrel by midday in Singapore in electronic trading on the New York Mercantile Exchange.
Oil rises to near $70 in Asia as US crude inventory drop suggest demand may be reboundingAugust 19th, 2009 Oil rises to near $70 on US crude inventory dropSINGAPORE — Oil prices rose to near $70 a barrel Wednesday in Asia, rallying for a second day after U.S. crude inventories unexpectedly fell last week.
Oil hovers above $69 in Asia amid forecasts for weak crude demand this yearAugust 12th, 2009 Oil hovers above $69 amid weak crude demandSINGAPORE — Oil prices hovered above $69 a barrel Wednesday in Asia after the U.S. and OPEC said global crude consumption will slump this year as economies struggle to emerge from recession.
Oil falls below $67 in Asia as consumer confidence drop, inventories point to weak US demandJuly 29th, 2009 Oil falls below $67 on US consumer confidence dropSINGAPORE — Oil prices fell below $67 a barrel Wednesday in Asia as a drop in U.S. consumer confidence and rising crude inventories painted a weak demand outlook.
Crude reserves drop less than expected, gasoline stockpiles surge despite July Fourth travelJuly 15th, 2009 Oil reserves fall; gasoline surgesNEW YORK — Crude oil reserves fell more than expected last week while gasoline stockpiles expanded, the government said Wednesday. Crude inventories dropped 2.8 million barrels, or 0.8 percent, to 344.5 million barrels, which is 16.5 percent above year-ago levels, the Energy Department's Energy Information Administration said in its weekly report.
Oil rises to near $71 in Asia as a drop in US crude inventories suggests demand pick-upJuly 1st, 2009 Oil rises to near $71 as US crude inventories dropSINGAPORE — Oil prices rose to near $71 a barrel Wednesday in Asia as a drop in U.S. crude inventories suggested demand may be picking up.
Oil rises above $70 in Asia as a drop in US crude inventories suggests demand pick-upJuly 1st, 2009 Oil rises above $70 as US crude inventories dropSINGAPORE — Oil prices rose above $70 a barrel Wednesday in Asia as a drop in U.S. crude inventories suggested demand may be picking up.
Oil limps below $49 in Asia as high US crude inventories, weak demand, undermine optimismApril 23rd, 2009 Oil limps below $49 as recovery hopes waneSINGAPORE — Oil prices stumbled below $49 a barrel Thursday in Asia as rising U.S. crude inventories and a stark demand forecast by the IMF doused investor optimism for a near-term recovery from the global recession.
Oil lingers below $49 in Asia as high US crude inventories, weak demand, undermine optimismApril 23rd, 2009 Oil lingers below $49 as recovery hopes waneSINGAPORE — Oil prices lingered below $49 a barrel Thursday in Asia as rising U.S. crude inventories and a stark demand forecast by the IMF doused investor optimism for a near-term recovery from the global recession.
Crude oil inventories are at highest levels in almost 2 decadesApril 22nd, 2009 Crude oil inventories jump more than expectedNEW YORK — Crude inventories rose more than forecast last week while gasoline inventories jumped despite expectations for a dip, according to government data released Wednesday. For the week ended April 17 crude inventories rose by 3.9 million barrels, or 1.1 percent, to 370.6 million barrels, which is 17.2 percent above year-ago levels, the Energy Department's Energy Information Administration said in its weekly report.
Loading ...