Forecast of Gasoline Supply Oil Trades Near 11-Week Low

Forecast of Gasoline Supply Oil Trades Near 11-Week Low : Oil traded near an 11-week low in New York after analysts forecast that gasoline supplies rose for a seventh week in the U.S., signaling a slow recovery in fuel demand in the world's biggest crude-consuming nation.

Futures slipped 0.6 percent yesterday after analysts surveyed by Bloomberg News estimated an Energy Department report today will show gasoline stockpiles climbed 1.85 million barrels in the seven days ended Feb. 11, matching the longest streak of gains since August. The industry-funded American Petroleum Institute said yesterday that inventories increased 1.24 million barrels to 240.9 million.

"Gasoline inventories here are very, very robust, and demand here is still very poor," said Kyle Cooper, director of research for IAF Advisors in Houston. Brent and West Texas Intermediate are "divorced" because of near-record oil stockpiles at Cushing, the delivery point for the New York contract, he said.

Crude for March delivery was at $84.44 a barrel, up 12 cents, in electronic trading on the New York Mercantile Exchange at 10:12 a.m. Sydney time. The contract slid 49 cents to $84.32 yesterday, the lowest since Nov. 30. Prices are 10 percent higher than a year ago.

The gain in New York futures lagged behind London's Brent crude, widening the spread between the contracts. The spread between the April contracts was at $13.91 a barrel today, from $14.35 on Feb. 14. The March West Texas Intermediate contract in New York expires on Feb. 22.

Crude Supplies

Brent crude for April settlement dropped $1.44, or 1.4 percent, to $101.64 a barrel on the ICE Futures Europe exchange in London yesterday.

U.S. crude inventories probably rose for a fifth week in the seven days ended Feb. 11 as TransCanada Corp. completed an extension of a pipeline to Cushing, adding to the glut at the country's biggest oil-trading hub, a Bloomberg News survey showed. TransCanada started deliveries to Cushing on Feb. 8 in the second phase of its Keystone pipeline project.

The Energy Department report may show crude supplies increased 2 million barrels last week from 345.1 million barrels, according to the median estimate of 13 analysts surveyed by Bloomberg News. Stockpiles at Cushing, Oklahoma, rose to the highest level since at least 2004 in the week ended Jan. 28.

U.S. retail sales increased 0.3 percent in January, the smallest gain since a drop in June, Commerce Department figures showed yesterday. The median forecast of economists surveyed by Bloomberg News was for a gain of 0.5 percent. For the latest updates PRESS CTR + D or visit Stock Market news Today

Related Post: