London (Platts)--20Dec2007
Global crude futures moved higher Thursday in a continuation of the
bullish reaction to Wednesday's US crude and product stock data. However, the
move has been less exaggerated as the market enters the holiday season which
tends to dampen price trends and movements.
At 12:10 GMT, the February ICE Brent contract rose 28 cents to
$91.76/barrel, while NYMEX WTI was at $91.54/b, up 30 cents, but had been over
$1/b higher earlier in the session.
The Energy Information Administration reported a 7.6 million barrel drop
in US commercial crude stocks, resulting from a sharp decline in imports. The
drop in imports was caused by fog-related issues in the Houston Ship Channel,
but imports also fell on the East and West Coasts.
Market analysts expect US crude levels to continue falling for the rest
of 2007 for tax reasons.
"Until crude oil stocks are rebuilt past the tax declaration, the US
will retain a supply disruption risk," Petromatrix wrote.
On a technical note, the crude futures markets, despite their apparent
volatility, are falling to trade within a $2 to $3 range as volumes wither as
the market winds down at the end of 2007.
"The charts are congesting prior to the start of the Christmas holidays
and are left with no clear trend or momentum," Petromatrix wrote in a report.
ICE gasoil moved higher with the January contract rising $9.25/mt to
$823.25/mt. NYMEX products both rose as well with heating oil up 1.76
cents/gallon to be pegged at $2.6155/gal while January RBOB was at
$2.3483/gal, 1.64 cents higher.
The EIA reported a 3 million barrel build in gasoline stocks and a
2.1 million barrel draw in distillate stocks, which was totally comprised of
heating oil with another wave of cold temperatures along the Atlantic Coast
behind the surge in demand.
--Jean-Luc Amos, jean-luc_amos@platts.com
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