Oil Prices Fall Over Expected Guild in U.S. Supplies
Crude-oil prices fell by more than $1 US a barrel Wednesday as expectations of a build in U.S. supplies brought some calm to a market that has been rattled recently by supply disruptions in Nigeria and concerns about Iran's nuclear ambitions.
"The emotions swing back and forth, and so does the price," said oil broker Tom Bentz of BNP Paribas Commodity Futures in New York.
Light sweet crude for April delivery fell $1.73 to settle at $61.01 a barrel on the New York Mercantile Exchange, where a day earlier the front-month futures contract had gained $1.22.
Nymex gasoline futures were unchanged at $1.4745 per gallon, while heating oil futures dipped 1.43 cents to close at $1.6521 a gallon. Natural gas futures declined 44.8 cents to finish at $7.283 per 1,000 cubic feet.
Nigeria is Africa's leading oil exporter and the United States' fifth-largest supplier, usually exporting 2.5 million barrels daily. Recent attacks on oil facilities by a militant group have cut production there by nearly 20 per cent.
But the market seemed to be focusing more on the U.S. inventory data coming Thursday, a day later than usual because of the Presidents Day holiday. Analysts surveyed by Dow Jones Newswires expect crude and gasoline stocks to grow but distillates to fall.
"Some (traders) are suffering risk-fatigue and are not inclined to respond to anything much beyond the grind of the weekly U.S. numbers and have little interest in the geopolitical context or the global context of the data," said Barclays Capital.
The Nigerian militants, who are pressing for the release of two of the region's leaders from prison and greater control of oil revenues, have threatened to fire rockets at any ships transporting crude oil from Nigeria.
Militants attacked a Royal Dutch Shell PLC-operated pipeline switching station on Monday and a boat they claimed housed Nigerian military personnel, vowing to spread their campaign across the south - the area from which most of the country's crude is pumped. That, and an earlier attack, has forced Shell to halt the flow of about 455,000 barrels a day.
The fact that light, sweet Nigerian crude is in high demand, especially in the U.S., makes the latest supply disruptions all the more important, traders said.
Sucden Commodity brokers said the unrest around the world is keeping a floor under prices.
"The failure of Iran and Russia to come to a deal after two days of talks is also supporting the market," the brokerage said in a report.
The countries completed the two days of inconclusive talks Tuesday on Russia's offer to enrich uranium for Tehran to avert suspicions that Iran could divert the nuclear fuel for atomic weapons. That comes amid Western pressure to impose sanctions against Iran.
CBC
"The emotions swing back and forth, and so does the price," said oil broker Tom Bentz of BNP Paribas Commodity Futures in New York.
Light sweet crude for April delivery fell $1.73 to settle at $61.01 a barrel on the New York Mercantile Exchange, where a day earlier the front-month futures contract had gained $1.22.
Nymex gasoline futures were unchanged at $1.4745 per gallon, while heating oil futures dipped 1.43 cents to close at $1.6521 a gallon. Natural gas futures declined 44.8 cents to finish at $7.283 per 1,000 cubic feet.
Nigeria is Africa's leading oil exporter and the United States' fifth-largest supplier, usually exporting 2.5 million barrels daily. Recent attacks on oil facilities by a militant group have cut production there by nearly 20 per cent.
But the market seemed to be focusing more on the U.S. inventory data coming Thursday, a day later than usual because of the Presidents Day holiday. Analysts surveyed by Dow Jones Newswires expect crude and gasoline stocks to grow but distillates to fall.
"Some (traders) are suffering risk-fatigue and are not inclined to respond to anything much beyond the grind of the weekly U.S. numbers and have little interest in the geopolitical context or the global context of the data," said Barclays Capital.
The Nigerian militants, who are pressing for the release of two of the region's leaders from prison and greater control of oil revenues, have threatened to fire rockets at any ships transporting crude oil from Nigeria.
Militants attacked a Royal Dutch Shell PLC-operated pipeline switching station on Monday and a boat they claimed housed Nigerian military personnel, vowing to spread their campaign across the south - the area from which most of the country's crude is pumped. That, and an earlier attack, has forced Shell to halt the flow of about 455,000 barrels a day.
The fact that light, sweet Nigerian crude is in high demand, especially in the U.S., makes the latest supply disruptions all the more important, traders said.
Sucden Commodity brokers said the unrest around the world is keeping a floor under prices.
"The failure of Iran and Russia to come to a deal after two days of talks is also supporting the market," the brokerage said in a report.
The countries completed the two days of inconclusive talks Tuesday on Russia's offer to enrich uranium for Tehran to avert suspicions that Iran could divert the nuclear fuel for atomic weapons. That comes amid Western pressure to impose sanctions against Iran.
CBC
posted by Ottawa Gas Prices | 3:45 PM
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