N.Y. Crude Rises to 2-Month High as U.S. Inventory Drop Signals Higher
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Crude Oil Rises for Third Day Amid Declining U.S. Inventories
New York, March 4 (Bloomberg) -- Crude oil rose more than
3 percent to a two-month high, gaining for a third straight day,
as declining U.S. inventories signaled a strengthening of demand
after a disappointing winter heating oil season.
''The feeling is that we've seen the lows for the year,''
said Tom Bentz, senior vice president of energy trading at
Cresvale International LLC in New York.
Crude oil prices have risen 9.3 percent since Monday, helped
by an industry report showing that a decline in inventories last
week erased a year-on-year surplus caused, in part, by weak
heating oil demand. Today's gain was accelerated by pre-arranged
buy orders triggered early in the day, traders said.
Crude oil for April delivery rose as much as 45 cents, or
3.5 percent, to $13.38 a barrel on the New York Mercantile
Exchange, the highest price since Jan. 12. Prices have risen
29 percent from a 12-year low of $10.35 in December.
''We're not going to see sub-$11 crude oil and this is the
realization of that,'' Bentz said.
In London, April Brent crude rose as much as 40 cents to
$11.65 a barrel on the International Petroleum Exchange.
Recent meetings between Saudi Arabia and Iran, the two
biggest producers in the Organization of Petroleum Exporting
Countries, have failed to produce an agreement on output cuts to
ease a global supply glut.
While both countries have said lower OPEC production would
help lift sagging prices, they haven't made any firm commitments.
Traders said that makes it less likely that OPEC will agree to
new cuts when it meets on March 23 in Vienna.
''Some positive news from Iran is the big fundamental change
we're looking for,'' said Al Zappulla, a trader at ABN Amro Inc.
in New York. ''Without some bullish news from Iran I don't think
OPEC is going to do anything.''
Crude oil prices are being determined largely by the
analysis of historical price charts, in the absence of fresh news
about supply and demand, traders said.
Iraq late yesterday reopened a pipeline to the Turkish port
of Ceyhan that carries about half its oil exports. The line was
closed Sunday after a U.S. air strike damaged a communications
facility used to operate the line.
News of the restart didn't weigh on prices, though, because
it ''was pretty much expected,'' said Zappulla. ''Even when the
story first broke they said it would be back up in two to three
days,'' he said. |
