Aug 09 2012
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OIL FUTURES: Crude Oil Prices Rise On Supply Fears
Thursday, Aug 09, 2012
-- Market swings between positive and negative territory in London session
-- Overall market sentiment is positive, analysts say
-- Tight supply in the North Sea and U.S. supports prices
By Jenny Gross
At 0941 GMT, the September Brent contract on London's ICE futures exchange was up 30 cents, or 0.3%, at $112.46 a barrel after hitting a three-month high Wednesday. The September contract on the New York Mercantile Exchange was trading up 28 cents, or 0.3%, at $93.62 a barrel.
Oil prices in London gained after dipping into negative territory earlier in the morning as traders took profits. Overall, the sentiment was positive, analysts said.
The U.S. Department of Energy's weekly oil-inventory report, released Wednesday, signaled tighter-than-expected supply of crude and petroleum products in the U.S. It said crude inventories fell by 3.7 million barrels compared with an average projected drop of 500,000 barrels.
"It's the same pattern as yesterday and the day before--weakness in the morning and strengthening in the afternoon," said Carsten Fritsch, oil analyst at Commerzbank. "Given the $8 leap [in Brent prices] in one week, it's not surprising there's some profit taking."
Andrey Kryuchenkov, vice president of commodities research at VTB Capital, said concerns rather than actual supply disruptions were driving oil markets higher. "Pre-weekend profit taking is still possible from current highs, especially provided there is no news on a further stimulus in Europe," he said. "The market is currently over bought and is in need of a correction."
On Friday, market participants will look to the International Energy Agency's monthly report, particularly the estimates on OPEC's incremental output this summer, analysts said.
At 0942 GMT, the ICE's gasoil contract for August delivery was trading $1.00 lower, or 0.1%, at $954.50 per metric ton, while Nymex gasoline for September delivery was up 82 points, or 0.3%, at $2.9886 per gallon.
-Write to Jenny Gross at firstname.lastname@example.org; Twitter: @jgginlondon
(END) Dow Jones Newswires
August 09, 2012 05:57 ET (09:57 GMT)
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