Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: drsvelte who wrote (22933)	5/27/1998 8:40:00 PM
From: drsvelte	Respond to of 95453

Arggh! NEW YORK, May 27 (Reuters) - An unexpected build in U.S. gasoline stocks reported by the American Petroleum Institute late on Wednesday sent prices reeling down, traders and analysts said. "Overall, it (the API data) falls into the bearish category...particularly for gasoline" said Nizam Sharief at Hornsby & Co. The API showed a hefty gasoline build of 3.232 million barrels to 125.72 million, contrary to the expected drawdown of 1.35 million barrels by traders and analysts polled by Reuters. "At this time of the year there should have been a draw but instead we saw a significant build in inventories," Sharief told Reuters. The market had predicted a drawdown amid healthy gasoline demand, for the long Memorial Day holiday which passed last Monday, which traditionally kicks off the summer driving season. "I am somewhat disappointed in terms of gasoline demand," Sharief said, adding that the implied demand was at 8.0 million barrels-per-day (bpd), or half a million short of the overall summer demand projections. As a result of the data, gasoline futures on the overnight ACCESS trading on NYMEX lost around 0.60 cents per gallon to 49.35 cents, but later recovered slighlty to 49.45 cents. Tom Bentz, trader and analyst at Cresvale International said he saw gasoline futures shedding around 0.50 cent on the data, and heating oil losses around a quarter penny. "On distillates, a seasonal build is within expectations," Bentz said. But the API reported a slightly larger than expected build of 1.69 million barrels compared to forecasts of 1.4 million. "The API is bearish on both heating oil and gasoline, and neutral on the crude," Bentz said. Crude stocks actually fell 3.6 million barrels to 349.53 million, contrary to forecasts of a stockbuild of 2.55 million barrels for crude. Analysts had expected a build amid a continuing strong phase in imports, but API's draw resulted with a huge fall in stocks on the West Coast, they said. Padd 5 fell 2.793 million barrels, while stocks in Cushing, Oklahoma (Padd 2) rose 604 million. "If half the draw comes from the West Coast, it does not leave much for the rest of the country," Sharief said. He added that the API stockdraw should also have been larger considering it reported a large drop in crude oil imports of 990,000 barrels. 19:00 05-27-98