Oil above $91, inventories, economy in focus
Oil edged higher above $91 a barrel on Friday, bolstered by falling inventories in top fuel consumer the United States at the height of winter demand.
U.S. crude stockpiles tumbled to the lowest in nearly three years last week. Heating fuel inventories in independent storage in the Europe’s Amsterdam-Rotterdam-Antwerp hub also fell from the year-earlier period.
“We’ve had the big stockdraws, but looking ahead the market is looking more balanced,” said Mike Wittner, oil analyst at Societe Generale. “We also have some macro concerns weighing on the market.”
U.S. crude rose 36 cents to $91.42 a barrel by 1001 GMT. London Brent crude gained 41 cents to $91.29.
Trade was thin as many participants have squared their books before the holiday period -- although analysts said the drop in volume could make for volatile prices.
“If anything does happen of interest, the market is going to be very jumpy,” Wittner said.
Oil has retreated from a record high of $99.29 late last month on signs that a slowing U.S. economy is undermining oil demand. Supply restraint by OPEC and falling stockpiles have helped limit losses.
“There are a lot of conflicting factors for prices at these levels,” said Gerard Burg of National Australia Bank in Sydney. ”For sure there is no additional OPEC supply to put prices at downward levels.”
A gauge of future U.S. economic activity weakened for a second straight month in November and manufacturing in the mid-Atlantic region softened, according to reports on Thursday.
Signs that weakness was spreading beyond the housing sector overshadowed a government report confirming the economy posted its fastest growth in four years during the third quarter.
Oil was also restrained by the latest in a series of forecasts calling for warmer-than-usual U.S. winter weather, which would curb demand for heating fuel in the Northeast.
Above-normal temperatures will prevail across most of the United States from January through March, the U.S. National Weather Service forecast in its latest outlook.
Forecasters such as the International Energy Agency (IEA) and producer group OPEC have lowered their projections for world oil demand growth in 2008, citing the threat of an economic slowdown.
The Organization of the Petroleum Exporting Countries, source of more than a third of the world’s oil, decided to leave oil output steady at a meeting earlier this month.
U.S. crude stockpiles tumbled to the lowest in nearly three years last week. Heating fuel inventories in independent storage in the Europe’s Amsterdam-Rotterdam-Antwerp hub also fell from the year-earlier period.
“We’ve had the big stockdraws, but looking ahead the market is looking more balanced,” said Mike Wittner, oil analyst at Societe Generale. “We also have some macro concerns weighing on the market.”
U.S. crude rose 36 cents to $91.42 a barrel by 1001 GMT. London Brent crude gained 41 cents to $91.29.
Trade was thin as many participants have squared their books before the holiday period -- although analysts said the drop in volume could make for volatile prices.
“If anything does happen of interest, the market is going to be very jumpy,” Wittner said.
Oil has retreated from a record high of $99.29 late last month on signs that a slowing U.S. economy is undermining oil demand. Supply restraint by OPEC and falling stockpiles have helped limit losses.
“There are a lot of conflicting factors for prices at these levels,” said Gerard Burg of National Australia Bank in Sydney. ”For sure there is no additional OPEC supply to put prices at downward levels.”
A gauge of future U.S. economic activity weakened for a second straight month in November and manufacturing in the mid-Atlantic region softened, according to reports on Thursday.
Signs that weakness was spreading beyond the housing sector overshadowed a government report confirming the economy posted its fastest growth in four years during the third quarter.
Oil was also restrained by the latest in a series of forecasts calling for warmer-than-usual U.S. winter weather, which would curb demand for heating fuel in the Northeast.
Above-normal temperatures will prevail across most of the United States from January through March, the U.S. National Weather Service forecast in its latest outlook.
Forecasters such as the International Energy Agency (IEA) and producer group OPEC have lowered their projections for world oil demand growth in 2008, citing the threat of an economic slowdown.
The Organization of the Petroleum Exporting Countries, source of more than a third of the world’s oil, decided to leave oil output steady at a meeting earlier this month.
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