12 September 2005, 15:16  Oil edges above $64 on slow U.S. supply recovery

Oil prices held above $64 a barrel on Monday, supported by the struggle to restart U.S. oilfields and refineries after Hurricane Katrina, but capped by signs of slowing global demand growth. U.S. crude rose 8 cents to $64.16 a barrel by 0900 GMT after shedding 41 cents on Friday, when prices fell for the fourth time in five sessions. Crude is almost $7 below the record high of $70.85 struck on Aug. 30. London Brent crude inched up four cents to $62.88."The market can't be too bearish as they will also focus on refining capacity constraints in the Gulf of Mexico," said Sano Keiichi, a manager with Sumitomo Corp. in Tokyo. The slow post-Katrina recovery in the U.S. energy industry heightened fears that supplies could remain tight as the world's top oil consumer heads for the peak winter demand season. The International Energy Agency has released 2 million barrels a day of crude and products to compensate for the outage. It meets on Thursday to review the volume and time-scale for the emergency release. About 5 percent of U.S. oil refining capacity may remain offline for several months, the Department of Energy said, as four of the eight refineries shut after Hurricane Katrina ravaged the Gulf Coast weeks ago stay idle. Almost 60 percent of oil and gas production from the Gulf of Mexico, the source of about a quarter of U.S. oil production, remained shut on Friday, the U.S. Minerals Management Service said

© 1999-2024 Forex EuroClub
All rights reserved