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"Oil futures set to rocket higher"

"API data on crude stocks drawdown called 'shocking'"

NEW YORK (CBS.MW) -- Crude futures shot up 40 points in overnight trading after the American Petroleum Institute reported that oil stocks fell 9 million barrels in the latest week.

"This almost seems too unbelievable to be true," said Phil Flynn, senior markets analyst at Alaron Trading. In comparison, he noted, the market expected stocks to build by 300,000 to 700,000 barrels. "Where did the crude go?"

Flynn said that if the Energy Department confirms the number Wednesday, crude would take a rocket ride.

"If this number is correct, this will shake the market to its rafters," he said. "I would say that, overall, the crude-oil-stock drop will overshadow the entire complex. If the DOE confirms a sizable drop, a lot of people will need to re-evaluate this market."

-- (here_ya@go.cpr), August 02, 2000


YEAH and the OIL MARKETS **** YAWNED ****. Down $5. in 3 weeks, it came back about 80 cents in Crude. Gasoline gave back 1/2 its gain late this PM. Only Nat. Gas looked good and that has nothing to do with the API report (in case you don't know ((which is most likely the case)) ).

-- cpr (buytexas@swbell.net), August 02, 2000.

Earlier link: LINK


-- cpr (buytexas@swbell.net), August 02, 2000.

Oil Trades in Steady to Firmer Range
August 3, 2000 3:52 am EST

SINGAPORE (Reuters) - Oil prices traded in a steady to firmer range in Asia on Thursday, after a recent rally on reports of sharp U.S. crude stock draws.

By 3:15 a.m. EDT, the September New York Mercantile Exchange (NYMEX) crude futures were last traded at $28.36 a barrel, up 10 cents from Wednesday.

Volumes were thin in the rangebound market, brokers said.

On Wednesday, the market jumped by 47 cents a barrel to settle at $28.26, after hitting early highs of $28.60 in New York.

Bullish U.S. oil reports heightened the recovery pace, after oil prices had fallen sharply over the previous week to near three-month lows on Monday.

The American Petroleum Institute (API) report late on Tuesday shocked the market when it said U.S. crude stocks were nine million barrels lower at around 284 million barrels in the July 28 week.

The U.S. Energy Information Administration (EIA) weekly report on Wednesday reported an even sharper drop.

The EIA, which is the Department of Energy's statistical arm, said U.S. crude stocks were down 10.6 million barrels to 284.1 million barrels for the week ended July 28.

This was the largest weekly draw since Jan. 1, 1999, it said.

The falls were attributed to lower U.S. crude imports. The market was seen stalling for direction on Thursday as dealers wanted to hear more from the influential Organization of Petroleum Exporting Countries (OPEC).

OPEC formally deactivated a plan for a third round of output hikes this week, which appeared to contrast with extra oil supplies seen seeping from its leading exporter Saudi Arabia.

Dealers now wondered if OPEC kingpin Saudi Arabia would fulfill its pledge made last month to hike output by 500,000 barrels-per-day (bpd).

Industry sources said Saudi planned to move 250,000 bpd more oil in July and another 250,000 bpd in August, although Riyadh has kept silent about its intentions.

Oil fell from the $32 levels, only after the market believed that extra Saudi oil would be seen.

The market had earlier ignored an OPEC agreement in late June to hike output for a second time this year by 708,000 bpd.

-- cpr (buytexas@swbell.net), August 03, 2000.

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