"If this number is correct, this will shake the market to its rafters,"
I hope this isn't OT but this seems to have significant implications for lots of things. I would be interested in anyones sense of the impact on the market.
Oil futures set to rocket higher
API data on crude stocks drawdown called ‘shocking'
Last Update: 5:56 PM ET Aug 1, 2000 NewsWatch
NEW YORK (CBS.MW) -- Crude futures shot up 40 points in overnight trading after the American Petroleum Institute reported that oil stocks fell 9 million barrels in the latest week.
"This almost seems too unbelievable to be true," said Phil Flynn, senior markets analyst at Alaron Trading. In comparison, he noted, the market expected stocks to build by 300,000 to 700,000 barrels. "Where did the crude go?"
Flynn said that if the Energy Department confirms the number Wednesday, crude would take a rocket ride.
"If this number is correct, this will shake the market to its rafters," he said. "I would say that, overall, the crude-oil-stock drop will overshadow the entire complex. If the DOE confirms a sizable drop, a lot of people will need to re-evaluate this market."
On the products side, the API reported that distillate stocks rose by 1 million barrels vs. the expectation of a decline of 200,000 to 500,000 barrels.
"It's bearish on the heating-oil side, but not wildly bearish because distillate stocks should build in August to get prepared for winter," Flynn said.
Meanwhile, the API said that gasoline stocks decreased by 1 million barrels, which compares with the expected 200,000 to 500,000 barrels lower.
"A bullish number, but not as wildly bullish as the crude," Flynn said. Implied demand, which was unusually low last week, rose to 8.91 million barrels from 8.13 million barrels a day.
Crude futures, which rose by 36 cents to settle at $27.79 a barrel on the New York Mercantile Exchange, advanced to $28.22 in overnight dealings.
September heating oil, which added 1.19 cents to settle at 76.84, gained 101 points, while September unleaded gasoline, which added 2.34 cents to settle at 87.21, rose by 174 points.
On Monday, crude-oil prices fell after OPEC President Ali Rodriguez was quoted as saying production in July was 700,000 bpd above the new supply ceiling
In the equities markets, the Oil Service Index (OSX: news, msgs) added 3.40 to close at 118.32, while the CBOE Oil Index (OIX: news, msgs) dropped 0.48 to close at 282.53.
cbs.marketwatch.com. |
