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Oil prices higher in early deals
AFP
LONDON
Petroleumworld.com 05 10 07World oil prices firmed on Thursday after losses on Wednesday that were linked to larger-than-expected US stockpiles of crude and motor fuel, dealers said.
In London, the price of Brent North Sea crude for June delivery rose 24 cents to 65.44 dollars per barrel in electronic trading.
New York's main oil futures contract, light sweet crude for delivery in June, added six cents to 61.61 dollars per barrel in electronic deals before the official open of the US market.
Crude futures had jumped higher on Wednesday as US government data showed a surge in American crude inventories and the first rise in 13 weeks for stockpiles of motor fuel.
Despite the jump in energy reserves, traders said that the market took a cautious approach to see if the inventory increases can be sustained with the US summer driving season around the corner.
Traders are concerned about whether US refiners can convert enough crude oil into gasoline or petrol in time for the driving season that starts at the end of May, when many Americans take to the road for their summer holidays.
"There is plenty of crude but not enough gasoline is being refined," said Tobin Gorey, a commodities analyst with the Commonwealth Bank of Australia in Sydney.
The US Department of Energy (DoE) had said on Wednesday that gasoline inventories had risen by 400,000 barrels in the week ending May 4. Analysts had forecast a rise of 150,000.
The DoE added that US crude inventories increased by 5.6 million barrels last week, when analysts had forecast a rise of only 875,000.
AFP 10 0847 GMT 05 07
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