Oil prices little changed as U.S. oil stocks data disappoints

SINGAPORE - Oil prices were little changed in early Asian trade on Thursday as an unexpected build in U.S. gasoline inventories offset a higher than forecast draw in U.S. crude inventories, while Brent was supported by buoyant manufacturing figures from Europe.

Brent crude for August delivery rose 10 cents to $63.59 a barrel by 0130 GMT (0930 EDT), after settling down 96 cents, or 1.5 percent, in the previous session.

U.S. crude for August delivery shed 9 cents to $60.18 a barrel, after ending the previous session down 74 cents, or 1.2 percent.

"The market is disappointed with last night's numbers," said Mike McCarthy, chief market strategist at Sydney's CMC Markets.

"The spread (between Brent and U.S. crude) had narrowed so it's not surprising it's diverging," McCarthy said.

The spread between Brent and West Texas Intermediate had narrowed towards $3 in trading on Wednesday but was widening in early trade on Thursday.

He said Brent was being supported by strong data from the Euro zone earlier this week which showed private businesses expanded at their fastest pace in four years this month.

But U.S. crude was down due to the larger than expected build in gasoline inventories after the U.S. Department of Energy's Energy Information Administration released oil stocks data on Wednesday.

The build in gasoline stocks came despite U.S. gasoline demand in the week to June 19 being at highest level for the period since 1991.

U.S. gasoline stocks climbed 680,000 barrels to 218.49 million in the week to June 19, compared with a Reuters poll which expected a 304,000-barrel drop, EIA data showed.

That was despite a larger than expected fall in U.S. crude inventories, which fell for the eighth straight week, by 4.9 million barrels to 462.99 million, in the week ending June 19, compared with analyst expectations of a 2.1 million barrel draw, the EIA said.

source: interaksyon.com

Oil prices extend slide as growing glut triggers floating storage

SINGAPORE - Oil prices slid in early Asian trade on Wednesday after touching their lowest in nearly six years the previous session, with analysts predicting further falls as oversupply plagues the market.

Oil tumbled 5 percent to near six-year lows on Tuesday, with the Brent crude international benchmark briefly trading at par to U.S. prices for the first time in three months as some traders moved to take advantage of ample U.S. storage space.

February Brent crude had dropped 40 cents since its last settlement to $46.19 a barrel by 0238 GMT. U.S. crude for February was trading at $45.60 a barrel, down 29 cents.

Analysts said prices would stay under pressure as oversupply hurts both the American WTI contract and globally traded Brent, with some traders beginning to book ships for oil storage.

"Our latest forecast calls for Brent oil to average $45 per barrel during 1Q15 (the first quarter of 2015)," Nomura bank said on Wednesday.

Oil storage trends also imply further price falls, with U.S. stocks possibly approaching 80 percent of capacity by the upcoming spring season, according to U.S.-based PIRA Energy Group.

"The last time the United States built inventories in December was in the middle of the financial crisis in 2008," the firm said.

Outside the United States, some of the world's biggest oil traders have booked supertankers to store at least 25 million barrels at sea in recent days, seeking to take advantage of the crash in crude prices and make a profit down the line.

"Once floating storage starts, there is very little support on the downside for Brent spreads," Energy Aspects said.

U.S. crude prices have been cheaper than Brent almost without interruption as soaring North American shale oil production pulled down prices while the rest of the world market remained more tightly supplied.

But with oil producer club OPEC deciding late last year to maintain its output despite slowing Asian and European economic growth and to defend its market share, including against surging U.S. competition, a glut has also appeared outside the United States, pulling down Brent prices close to U.S. levels.

"The closing gap looks to be solidifying Saudi Arabia's strategy to curb shale production and protect market share," ANZ bank said.

source: interaksyon.com

Oil prices rise in Asian trade amid falling US inventories

SINGAPORE - Oil prices edged higher in thin Asian trade Monday as investors focused on a fall in US crude inventories, indicating robust demand in the world's top consumer.

New York's main contract, West Texas Intermediate (WTI) for February delivery, was up two cents at $100.34 in afternoon trade while Brent North Sea crude for February gained 19 cents to $112.37.

The US Department of Energy on Friday reported that crude inventories for the week to December 20 fell by 4.7 million barrels, more than the 2.2 million expected by analysts in a Wall Street Journal survey.

The decline was the fourth consecutive drop after a 10-week run of rises that added 35 million barrels to total stockpiles.

Desmond Chua, market analyst at CMC Markets in Sydney, said the falling inventories in the world's biggest economy underscored "stronger demand as the global outlook brightens".

The upbeat stockpiles report released on Friday, delayed due to the Christmas holidays, is supporting WTI prices above the "psychologically important" $100 mark, Chua said.

The report came amid other signs the US economy is picking up. Data released last week showed new home sales, durable goods orders and jobless claims also bested expectations.

Investors meanwhile continue to monitor developments in South Sudan, where violence in a key oil-producing region has dented crude output and led to numerous oilfield staff evacuations.

More than 1,000 people have died since fighting between forces loyal to President Salva Kiir and former vice president Riek Machar broke out on December 15.

The United Nations said in a statement that the number of people who have taken refuge in its bases around the country has grown to 75,000.

Analysts say the fledgling producer usually exports about 220,000 barrels of crude oil a day to Japan, Malaysia and China.

source: interaksyon.com

Philippines, UK plan to double trade in 5 years

MANILA - The Philippines and the United Kingdom have agreed to double trade in the next five years amid growing interest for partnerships among Filipino and British businessmen.

In a press conference today, UK Minister of State for Trade and Investment Lord Stephen Green of Hurstpierpoint said two-way trade between the two countries has much room to grow as volumes remain minimal.

UK Trade and Investment (UKTI) data showed that two-way trade of goods and services reached £1.2 billion or P82 billion last year.

With increasing awareness about the opportunities that both countries can offer each other, Green said it would be easy to jack up trade and investments in the coming years, especially in the business process outsourcing (BPO), engineering, financial and retail sectors.

"We expect to see trade in both directions to double in the next five years," Green said.

The UK trade chief said more British businessmen are interested in the Philippines following its record economic expansion.

"The story of the Philippines needs to be more actively told," he said.

Philippine Trade Undersecretary Ponciano C. Manalo Jr. said four export sectors present opportunities for wider partnership between the two countries, namely, automotive parts, BPO, creative industries and food.

Finance Secretary Cesar V. Purisima said the UK may serve as the gateway for Filipino businessmen setting their sights at the European Union (EU).

"The EU remains the largest economic zone but is underrepresented in our trade. Despite the economic difficulties in that area, we welcome opportunities from the UK and the EU in general," Purisima said.

source: interaksyon.com

Oil dips in Asia on eurozone debt woes

SINGAPORE—Oil prices eased in Asian trade Friday on growing fears about the eurozone's debt troubles but the falls were tempered by worries about the nuclear standoff between the West and Iran, analysts said.

New York's main contract, West Texas Intermediate crude for delivery in July was down two cents to $90.64 per barrel while Brent North Sea crude for July shed 23 cents to $106.32 in the afternoon.

"Oil prices continue to decline as macroeconomic sentiment continues to weaken, with the lack of concrete measures on the part of European policymakers to address the Greek issue," Barclays Bank said in a commentary.

It said the lack of a policy response to Greece's possible exit from the euro was "weighing significantly across all risk assets."

Shortly after a European Union summit that ended Thursday failed to produce a conclusive plan on dealing with Athens, a May survey of eurozone business confidence showed the sharpest monthly fall for nearly three years.

A Greek general election set for June 17 is expected to result in a win for anti-austerity parties who have said they will tear up a bailout deal with the European Union and International Monetary Fund.

Such a move would in effect lead to the country's euro exit, which analysts warn could have disastrous knock-on effects for the global economy.

Investors are also keeping close watch on the nuclear row between Iran and the West after talks between the two sides ended on Thursday with few results except to fix a date to meet again next month.

P5+1 nations–Britain, China, France, Russia and the United States plus Germany–had laid out a new package of proposals to persuade Iran to suspend uranium enrichment, which was flatly rejected by Tehran officials.

Iran has faced a raft of sanctions from the international community over its nuclear program, seen by many as a guise for atomic weapons push.

Iran has insisted that the program is for purely peaceful purposes.

"Getting Iran to the table is one thing, getting them to back down is quite another," said Justin Harper, market strategist at IG Markets Singapore. —Agence France-Presse

source: gmanetwork.com

Oil rebounds ahead of US jobs data

Singapore - Oil prices bounced back in Asian trade Friday from the previous day's sharp losses as traders awaited a key labour market report in the United States, the world's biggest economy, analysts said.

New York's main contract, West Texas Intermediate (WTI) crude for delivery in June, was up 13 cents to $102.67 per barrel while Brent North Sea crude for June gained 17 cents to $116.25 in morning trade.

WTI crude shed $2.68 on Thursday, while Brent tumbled $2.12 to a three-month low as investors reacted to data showing tepid growth in the important services sector of the US economy in April.

The Institute for Supply Management's services index fell to 53.5 in April, from 56.0, showing a sluggish expansion in the services sector.

The numbers put traders on the defensive before the release of the US jobs report later Friday, which is unlikely to spur optimism about the economic situation in the world's top oil-consuming nation, analysts said.

Economists expect Friday's report -- which includes data on both the private and public sectors -- to show the economy created a meagre 162,000 jobs last month, while the unemployment rate was stuck at 8.2 percent.

"Slower-than-expected growth in the massive US service sector dragged on markets as traders awaited the April US payrolls data on Friday," Phillip Futures said in a market commentary.

An indication by the Organisation of the Petroleum Exporting Countries (OPEC) that it wanted to scale prices down to sustainable levels was also bearing down on the market.

"We are not happy with prices at this time," said Abdullah El-Badri, OPEC's secretary general, at an energy conference in Paris.

"There is speculation on the market. We have plenty of oil on the market and we are working to bring the prices down," he added ahead of the cartel's next scheduled production meeting in Vienna next month.

OPEC's largest producer Saudi Arabia has previously pledged to ensure sufficient supplies to cover the shortfall caused by Western sanctions on Iranian crude, as well as disruptions caused by the civil war in Libya last year. — AFP

source: gmanetwork.com