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Oil prices flat on expectations of rise in US energy reserves
Petroleumworld
SINGAPORE
Petroleumworld.com 06 27 07
Oil prices turned flat in Asian trade Wednesday as the market waited for the weekly US energy report where expectations are for a further rise in petroleum reserves, dealers said.
At 3:05 pm (0700 GMT), New York's main contract, light sweet crude for August delivery, was down one cent at 67.76 US dollars a barrel from its close of 67.77 dollars in late US trades Tuesday when the contract slid 1.41 dollars.
Brent North Sea crude for August was three cents higher at 70.20 dollars.
Tetsu Emori, chief commodities strategist with Mitsui Bussan Futures in Tokyo, said the market was expecting an increase in inventories.
"For crude oil and gasoline (petrol), they are expecting a rise," he said.
The US Department of Energy (DoE) was to release its weekly report later Wednesday with crude and gasoline reserves the main items closely watched by the market.
Gasoline reserves are in focus amid the current US summer driving season where demand typically peaks as many Americans take to the roads for their vacation.
Oil prices were dampened by news that US energy giant Chevron has resumed operations at its facility in southern Nigeria that was shut down two weeks ago because of community unrest.
"We have restored output of 42,000 barrels of crude per day at the Abiteye flowstation," a company spokesman told AFP.
Around 20 youths occupied the facility, capable of producing 70,000 barrels per day (bpd), on June 17.
Chevron is Nigeria's third-largest operator, accounting for about 360,000 bpd of the country's total output of 2.6 million barrels, a quarter of which has been lost to unrest in the Niger delta.
AFP 27 0714 GMT 06 07
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