Posts for 'Oil' Category

BP last night delayed a critical test to determine if a new cap on its blown-out Macondo well can arrest the flow of oil that has gushed into the Gulf of Mexico for the past 12 weeks. "We decided that the process may benefit from additional analysis that will be performed [yesterday and today]," said retired Coast Guard Admiral Thad Allen, overseeing the U.S. response to the spill.

Regardless of the results, BP should be able to contain the flow with oil-siphoning vessels by mid-July, he said. As the oil giant prepared for a potential turning point in the worst offshore spill in U.S. history, it also said its plans to sell some non-core assets, which will help pay for a $20-billion clean-up fund, were moving forward. Both pieces of news had helped BP shares maintain their recent recovery in London, although they see-sawed in New York with profit-taking erasing most of the early gains.

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Crude prices rose as much as 0.6 percent on Wednesday, pulling away from one-month lows struck in the previous session on forecasts of a second weekly fall in U.S. inventories. Prices tracked volatile equities in the past two days, paring gains on Tuesday after a report from the Institute for Supply Management (ISM) showed a slowdown in the U.S. service sector. But the expected tightening of U.S. crude and gasoline supplies allowed oil to shrug off falling Asian equities on Wednesday.

U.S. crude for August advanced as much as 40 cents to $72.38 a barrel on Wednesday and was up 15 cents at $72.13 by 0538 GMT, after touching $71.09 on Tuesday, its lowest intraday price since June 8, and peaking at $73.86. ICE Brent for August rose 16 cents to $71.61.

"Yesterday's non-manufacturing data fell more than expected, so investors have a wait-and-see approach," said Serene Lim, a Singapore-based oil analyst with ANZ. "The market is pricing in a drop in crude inventories, but if inventories fall less than expected, we might see prices falling."

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Crude-oil futures rose slightly in Asian trading Wednesday, on the back of expectations that U.S. crude inventories would decline in Energy Information Administration data due to be issued later in the day. On the New York Mercantile Exchange, light, sweet crude futures for delivery in August traded at $76.17 a barrel at 0653 GMT, up $0.23 in the Globex electronic session. August Brent crude on London's ICE Futures exchange rose $0.03 to $75.47 a barrel.

U.S. crude inventories are expected to fall by 900,000 barrels in the week to June 25, according to analysts surveyed by Dow Jones Newswires. Gasoline inventories are expected to fall by 400,000 barrels, while distillates are expected to rise by 900,000 barrels. The American Petroleum Institute, an industry group, said Tuesday that crude stocks fell by more than 3.4 million barrels in the week to June 25, while gasoline stocks fell by more than 908,000 barrels.

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Energy giant BP PLC unveiled a plan yesterday to vastly boost the amount of oil it is siphoning off from its blown-out Gulf of Mexico well. With the spill certain to continue for weeks, BP's U.S.-listed shares tumbled as investors feared the British company may give way to U.S. political pressure to suspend its quarterly dividend. In New York trading yesterday, BP fell $3.30 to $30.67.

BP is planning new measures to draw off more oil and to replace the containment cap which has not stopped thousands of barrels of oil from escaping daily from the well into the Gulf. It is digging relief wells to permanently block the flow in August.

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Crude oil tumbled, capping its biggest weekly decline in 16 months, on concern Europe's debt crisis will slow the global economic recovery. Futures dropped to the lowest level in 12 weeks as equities fell amid speculation Greece's financial distress will spread to other countries. German Chancellor Angela Merkel said euro-area countries must speed up efforts to tighten financial regulation and pursue budget consolidation.

``The continued problems over in Europe seem to be infecting the rest of the world,'' said Sean Brodrick, a natural resource analyst with Weiss Research in Jupiter, Florida. ``If this thing continues it could really hurt the chances of a global recovery.''

Crude oil for June delivery fell $US2, or 2.6 per cent, to settle at $US75.11 a barrel on the New York Mercantile Exchange, the lowest price since Feb. 12. Futures are down 13 per cent for the week, the biggest drop since the week ended Dec. 19, 2008.

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Oil prices extended gains in Asian trade today on optimism over the US economic recovery following positive jobs data along with easing global fears about Greece's debt crisis, analysts said.New York's main contract, light sweet crude for June delivery, rose 43 cents to $85.60 a barrel.London's Brent North Sea crude for June delivery was up 21 cents to $87.11 per barrel.

Prices were supported by rising equity markets in Asia after a rally on Wall Street following encouraging US company results. Hong Kong shares were 1.30 percent higher in early trading and Tokyo's Nikkei was up 1.35 percent by noon.

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Oil prices eased in Asian trade Friday pressured by a strengthening US dollar and weaker equity markets, analysts said. New York's main contract, light sweet crude for delivery in May, slid 66 cents to $84.85 a barrel Brent North Sea crude for June was down 61 cents to at $86.98. "The US dollar has strengthened against the euro and with Asian equities pulling back, we see crude oil also pulling back moderately in line with the financial market's movements," Victor Shum, an analyst with energy consultancy Purvin and Gertz in Singapore, told AFP.

Oil prices, however, remain strong due to increased confidence about the global economic recovery, he added. Stock markets in Hong Kong and Tokyo were lower in early trade Friday with the Hong Kong shares opening 1.05% lower shortly after opening and the benchmark Nikkei-225 index losing 0.67%.

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Oil prices fell Friday for a third day, dropping below $85 a barrel as traders questioned whether Americans were burning enough fuel to justify higher prices. The slump in crude wiped out gains from earlier in the week, when prices jumped to an 18-month high above $87 a barrel. If oil continues to tumble, it could pull gasoline prices lower. But experts still predict gasoline will get more expensive this summer as vacationers hit the road and the driving season begins in earnest.

The Energy Information Administration said this week the national average should top $3 a gallon this summer. On Friday, Benchmark crude for May delivery lost 47 cents to settle at $84.92 a barrel on the New York Mercantile Exchange. In London, Brent crude added 2 cents to settle at $84.83 on the ICE futures exchange.

Oil prices tumbled even though stock markets rallied and the dollar fell compared to other major currencies. A weaker dollar usually props up oil prices since investors holding foreign currencies find they can buy more crude for the same price.

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The good news is the global economy is showing gradual signs of improvement and finally a forecast of hope. The bad news is, after a relatively bearable two years at the pump, crude oils prices are on the rise again. For the past two months the price of crude oil has risen steadily and has jumped about twenty five percent just since this February. The price now tops $85 per barrel and seems to be well on its way to $100 per barrel in the near future.

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Oil prices fell to near $80 a barrel Thursday in Asia, extending losses from the previous day after an increase in U.S. crude inventories suggested consumer demand remains weak.

Benchmark crude for May delivery was down 25 cents to $80.36 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract lost $1.30 to settle at $80.61 a barrel on Wednesday.

The Energy Department reported on Wednesday that crude inventories rose by 7.3 million barrels to 351.3 million barrels last week. Analysts had expected an increase of 1.67 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.

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