IPE Brent down on profit-taking ahead of US stock data
London (Platts)--19Apr2006
IPE Brent crude futures on Wednesday were slightly down ahead of the US
stock data due out later today, on a small bout of profit-taking but ongoing
bullish factors from Iran and Nigeria continue to support the market, brokers
said.
At 1038 London time (0938 GMT) IPE Brent crude futures for June delivery
were changing hands at $72.40/barrel, down 11cts from the previous sessions
record all-time high settle.
"This morning we're seeing some profit taking ahead of the US data and
that's what people are concentrating on for the moment," a London-based broker
said.
Analysts polled by Platts are expecting a further build in US crude
stocks of 1.9-mil barrels. "Crude stocks should indicate a small increase due
largely to an expected rebound in imports of 100,000 to 200,000 b/d," energy
consultant Jim Ritterbusch said in a report.
Industry players were also focusing on product data. "Any draws on the
products will be a reason for crude to push to the upside once again, and
probably test all-time highs," a trader said. On Tuesday June IPE Brent set an
intra-day high of $72.64/barrel.
Analysts surveyed by Platts are projecting a 2.7 million barrel decline
in gasoline stocks. "Expect yet another week of steep gasoline draws as
winter-grade is shoved downstream - legal to sell it at retail through
end-May, though its two and a half weeks away from its sell-by date at
refineries and terminals" Deborah White, energy analyst at Societe Generale,
said in a report.
Distillate stocks are expected to build 1.75-mil barrels as refinery
runs and higher yields will increase stocks further, according to Katherine
Spector, energy analyst at J.P.Morgan.
Meanwhile, a senior OPEC delegate Wednesday said OPEC does not need to
cut its 28 million b/d ceiling as things stand and there is no need to take
any action on the downside for the rest of the year. "As things stand, on
the downside, it doesn't look like there is anything," the delegate told
Platts.
High oil prices will be on the agenda of informal talks to be held by
OPEC ministers attending the 10th International Energy Forum in OPEC member
state Qatar April 22-24.
"There is no need to do anything this year," he added.
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