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Oil prices stable as traders mull US gasoline reserves
AFP
LONDON
Petroleumworld.com 06 15 07World oil prices steadied on Friday after traders took profits and assessed weak reserves of motor fuel in the United States, which is the biggest energy consumer in the world.
They also kept a keen eye on developments in the Middle East and Nigeria, which were hit by fresh unrest on Friday.
Brent North Sea crude for August delivery eased two cents to 71.34 dollars per barrel in electronic delas.
New York's main oil futures contract, light sweet crude for delivery in July, firmed five cents to 67.70 dollars per barrel in floor trading.
"Market participants were pausing ahead of the weekend, with many pocketing profits," said Sucden analyst Michael Davies in London.
"However, the market remains well supported as US gasoline (petrol) stocks are still running approximately six percent below last year's levels."
Gasoline stockpiles are presently a major influence on the market because of the ongoing US driving season, when demand traditionally peaks as American holidaymakers hit the highways.
Prices had risen on Monday after a heavy sell-off the previous week, partly sparked by fears that rising global interest rates could crimp global economic growth -- and oil demand.
Crude futures began falling on Tuesday as the market turned its focus to the weekly US stockpiles data.
Expectations that gasoline supplies had risen strongly led the market to shrug off a forecast of higher crude demand by the International Energy Agency.
However, oil prices surged higher after the US Department of Energy revealed that US gasoline inventories were, in fact, unchanged at 201.5 million barrels in the week ending June 8, ending a five-week streak of gains.
Crude prices were also supported by a decline in refinery utilisation for the second consecutive week.
Elsewhere in the market, the Organization of Petroleum Exporting Countries held steady its estimate of world demand for oil this year in a monthly report.
The producers' grouping also brushed aside calls from consuming countries that it boost supply in a bid to lower prices.
Geopolitical jitters have also lent support to oil prices amid unrest in the crude-rich Middle East and Nigeria, and simmering concerns over Iran's disputed nuclear energy ambitions.
Davies added: "Continuing tensions in the Middle East are seen as being supportive of crude prices, after Hamas militants took control of the Gaza Strip, following six days of fierce fighting."
The German presidency of the European Union on Friday condemned the "violent" seizure of power by Hamas in the Gaza Strip.
Hamas' takeover of Gaza effectively splits the Palestinians into two separate entities and has thrown into jeopardy any prospect for a future Palestinian state and peace with Israel.
In southern Nigeria meanwhile, gunmen have kidnapped several foreigners, military and industry sources said Friday.
At least five people were abducted in three separate incidents in two different southern states in the space of 48 hours, according to Major Omale Ochaguba, a spokesman for the Joint Task Force responsible for policing the Niger Delta.
Nigeria is the biggest crude producer on the African continent, but unrest has cut the country's production by about 25 percent.
AFP 15 1514 GMT 06 07
Copyright© 2007 AFP. All Rights Reserved.
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