What's Moving the Oil Markets?
•IPE Brent futures in London recovered Friday losses seen
in late trading Thursday with gasoline demand providing support near the
$70/barrel mark, brokers said. Short covering is also buoying the price going
into the weekend.
•The US Energy Information Administration's latest report showed high prices had
done little to dent gasoline demand in the world's largest oil-consuming nation.
On a week-on-week basis, gasoline demand was up 237,000 b/d at 9.43 million b/d,
a level not seen since last September. Crude stocks, meanwhile, jumped an
unexpected 1.6 million barrels to 345.5 million barrels and without bullish
gasoline demand a more sustained sell would have ensued.
•-Earlier in the week news that talks between Iran and the US To resolve the
stalemate over Iran's uranium enrichment program was interpreted at reasonably
bearish however the market is now more sceptical about the possibility of a
smooth resolution. A Barclays Capital report views the talks as the beginning of
the end. "The US has made a conditional offer to Iran on talks, although we
suspect that this can also be seen as indication of the narrowing of options and
as a precursor to action.
Copyright © 2005 - Platts
Please visit: www.platts.com
Their coverage of energy matters is extensive!!.