Oil Up After Drop in U.S. Gasoline Stocks ($56.38/bbl)

Reuters ^ | April 7, 2005

[RWR8189]

LONDON (Reuters) - Oil prices rose back over $56 a barrel on Thursday as concerns persisted over tightening U.S. gasoline supply ahead of peak summer driving demand.

U.S. light crude rose 36 cents to $56.21 a barrel, about $2 below Monday's record at $58.28. Brent crude oil price rose 41 cents to $55.68 a barrel.

The U.S Energy Information Administration (EIA) said on Wednesday that gasoline stocks fell 2.1 million barrels to 212.3 million on strong demand from motorists and despite higher refinery activity.

Crude oil inventories in the world's top energy consuming country rose 2.4 million barrels to 317.1 million barrels, the highest level since June 2002, the EIA said.

"Inventory signals remain mixed, with builds in crude and draws in gasoline. While the crude surplus seems to belie concerns about a supply shortfall, the build in crude seems set to slow on higher refinery output and reduced imports," Eurasia Group analyst Antoine Halff said in a report.

The International Monetary Fund, due to release a report on the oil market on Thursday at 1500 EDT, warned on Wednesday that further jumps in oil prices could pose a serious threat to global growth.

"So far, the effects of higher oil prices on global growth and inflation have been manageable, partly because higher oil prices owe much to strong global demand, and partly because of the improved anti-inflationary credibility of central banks," IMF Managing Director Rodrigo Rato said.

"But, further sharp increases may have more serious effects."

U.S. crude prices have surged about 30 percent this year, driven by concerns that rapidly rising energy demand in Asia's emerging economies could outpace supply growth.

The Organization of the Petroleum Exporting Countries raised output limits by 500,000 barrels per day (bpd) to 27.5 million bpd last month in a bid to cool prices and left room for a second increase before a June meeting, if prices failed to drop below $55.

OPEC oil production, excluding Iraq, rose 175,000 bpd in March to 27.795 million bpd, 1 percent above the official ceiling, a Reuters survey showed.

[RWR8189]

4/07/05 Session Contract Detail for May 2005

	Last				56.38
	Open High				55.78
	Open Low				55.78
	High				56.44
	Low				55.76
	Settle				55.85
	Change				0.53
	Open Interest				215710
	Volume				0
	Last Updated				4/07/05 05:37:00

[1FASTGLOCK45]

Soooo, Is the sky falling offically yet?
YAWN!
How about Bush's approval ratings?
i personally give him 3 thumbs up.

[endthematrix]

And many local tax referendums have passed throughout the land. Property tax complaints anyone? Just a whisper...

[Joe Miner]

Are you posting these as a chicken little thing? Just curious and don't have the time to check your posts to see if you are one of those that think the country is going to hell.

For those true Americans, this will all blow over once the nutjobs, the speculators, and the anti-American nuts run out of gas(figuratively).

If you want to learn on your own without the so called "experts" feeding you BS here is a good site to visit:

EIA

[carlr]

Once again states with sales taxes are loving this.In NY at 7.25% on top of the gas tax the increase in price since Jan 2004 has been a windfall.A .50 rise in the price of a gallon means .03 increase in tax revenue.The county in which the sale occurred receives a percentage of the tax as well so don`t look for any outrage from these governments either.

[RWR8189]

I usually post this article in the morning when I get up to cover overnight tradings in Asia.

Don't know what you mean by playing "chicken little"

[Joe Miner]

Chicken Little was a hen that ran around saying the sky was falling.

Chicken Little

[thackney]

It is wonderful. I love it when other people pay my state taxes for me.

[upcountryhorseman]

For those that own oil related stocks, it's wonderful news!
For those that have price shock at the gas pump, convert to
bio-diesel. (let them eat cake!)