17 August 2005, 08:58  Oil prices rise slightly in Asian trade ahead of US inventory data

Oil prices rose slightly in Asian trading hours amid expectations of a drop in US gasoline stocks when the US Department of Energy (DoE) releases its weekly petroleum inventory report later today, dealers said. At 10.45 am (0245 GMT) here, New York's main contract, light sweet crude for delivery in September, was up 0.10 usd at 66.18 usd a barrel from its close of 66.08 usd in the US overnight. Crude prices have fallen from record highs set last week but market sentiment remains bullish because of continued a strong appetite for oil, and the DoE weekly oil report will confirm that demand in the US, the world's biggest consumer, remains solid, dealers said. "Generally the market sentiment remains bullish," said Victor Shum, a Singapore-based energy analyst with the Purvin and Gertz consultancy. "There has been some pullback but no significant reversal of the bullish trend." He remarked: "One should not read too much into it other than prices remained supported at high levels." The DoE report is forecast to show a drop in gasoline reserves of 1.5 mln barrels, dealers said. This could revive fears about supplies in a tight market. US levels of distillates, which go into making heating oil, will also be closely followed. Iran is an additional concern. It is the second-largest producer in OPEC after Saudi Arabia, producing 4.2 mln barrels per day. US President George W Bush refused last week to rule out the use of force against Iran over its resumption of nuclear activities. New York futures have rocketed by more than 60 pct since Aug 2004, and more than doubled since Aug 2003, when they stood at just 30 usd a barrel. But when adjusted for inflation, they remain below levels reached in the wake of the 1979 Iranian Revolution, when prices surged to upwards of 80 usd a barrel in today's money.

© 1999-2024 Forex EuroClub
All rights reserved