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Strategies & Market Trends : Paint The Table -- Ignore unavailable to you. Want to Upgrade?

To: arno who wrote (19290)	3/13/2002 8:20:05 AM
From: arno	Respond to of 23786

03/13 06:04 Crude Oil Rises as U.S. Fuel Supply Drops by Most in Two Years By Thomas Tugendhat London, March 13 (Bloomberg) -- Crude oil rose to a six-month high after an industry report showed U.S. supplies of diesel, heating oil and similar fuels last week posted their largest decline in two years. Refineries cut operating runs to close to a nine-year low after a warmer-than-normal winter reduced heating fuel demand. That drained supplies of products such as diesel and gasoline by as much as 4.9 percent last week, while crude oil supplies stayed level, the American Petroleum Institute said yesterday. ``It's all products, it's all APIs,'' said Robert Laughlin, a director of GNI Ltd. in London. ``The refinery runs are down so the crude oil hasn't fallen.'' Brent crude oil for April settlement rose as much as 52 cents, or 2.2 percent, to $24.22 a barrel on the International Petroleum Exchange in London. Brent, the benchmark for two-thirds of the world's oil, has risen 21 percent since the start of the year, when the Organization of Petroleum Exporting Countries and rivals such as Norway lowered sales to prevent a glut. In the U.S., crude oil for April delivery rose as much as 45 cents, or 1.9 percent, to $24.65 a barrel in electronic trading on the New York Mercantile Exchange. Inventories in the world's top energy consumer remain more than a 10th higher than last year. Stores of distillates, the category including diesel and heating oil, fell by 6.6 million barrels to 128 million barrels, still 13 percent more than at this time in 2001, according to the API. Gasoline supplies declined by 3.4 million barrels, or 1.6 percent, to 210 million barrels, 4.9 percent more than the same time last year. Crude oil supplies slipped 0.1 percent to 320 million barrels, 12 percent more than a year ago. The U.S. Department of Energy will deliver its weekly inventory report at 9 a.m. Washington time. OPEC Cutbacks Imports of crude oil also remained near the year's lows as OPEC's cuts lowered supplies. The U.S. bought 8.1 million barrels of foreign oil, compared with an average of 9 million barrels over the past year. That reduction may reduce stockpiles if the restrictions aren't relaxed in June, Bruce Evers, an analyst at Investec Henderson Crosthwaite. ``At the moment there's a reasonable chance they will monitor the situation and keep the status quo,'' he said. OPEC is meeting in Vienna Friday to discuss extending their current cutbacks. The group, which pumps one-third of the world's oil, is selling less now than at any time since the Gulf War. The 10 members bound by quotas sold 22.4 million barrels a day in February, according to Bloomberg estimates. Iraq, the Middle East's third largest supplier and the only member without a quota, is causing prices to rise further as President Saddam Hussein is resisting U.S. demands it readmit United Nations weapons inspectors. U.S. Pressure The standoff has led the U.S. to send Vice President Dick Cheney on a tour of allies in Europe and the Arab world to discuss the so-called war on terror. Any action against Iraq would disrupt that nation's shipments of 2.5 million barrels a day, as well as the traffic in the Persian Gulf, analysts said. ``There's a $2 premium for Iraq at the moment, and if something happens, the price will go straight up,'' Evers said. ``Even though the Iraqi infrastructure is falling apart they're still exporting.'' quote.bloomberg.com