What's Moving the Oil Markets?

What's Moving the Oil Markets?

•Brent crude futures in London drifted lower ahead of the latest release of the US stock data with expectations for builds in the key US gasoline and distillate markets, trading sources said. The front-month July IPE Brent futures contract edged lower in early trading pegged at $70.55/barrel, down 26 cents from the overnight settlement.

•Analysts polled by Platts predicted that gasoline stocks would rise by a hefty 1.8 million barrels with distillates also posting gains of 1.6 million barrels. Crude stock numbers were largely seen as insignificant due to the very high inventory levels, but analysts projected them to fall 400,000 barrels. "Gasoline stocks will likely show a significant increase due largely to an expected post-holiday drop in implied demand of as much as 150-200,000 b/d. A further expected improvement in output could be largely negated by a decline in imports from recent near-record levels," energy consultant Jim Ritterbusch said in a report.

•- Prices also came under pressure Tuesday following reports out of Iran that there could be a positive resolution to the nuclear crisis.

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