New York (Platts)--4Jan2008
NYMEX's front-month crude futures on the CME's Globex system were 13
cents lower at $99.05/barrel Friday, losing upward momentum as gasoline prices
act as a drag on the complex.
The Energy Information Administration reported a 1.9 million barrel build
in gasoline stocks Thursday, but the pace of demand growth has substantially
slowed. Gasoline demand on a four-week moving average was up just 0.1
percentage points and gasoline demand represents about 45% of total US
petroleum demand.
"Perhaps totally flat demand in the face of a 30% year-over-year rise
in retail prices and in a slowing economy is perhaps a stronger outcome than
might have been imagined before," Paul Horsnell and Kevin Norrish, energy
analysts at Barclays Capital, said in a report.
While February RBOB was marginally lower in overnight trading, heating
oil firmed as continued cold temperatures along the Atlantic Coast provided
support. But forecasts for the next week are calling for a return to above
normal temperatures, which has the potential to keep distillate demand at a
more moderate rate than has been seen.
--Linda Rafield, linda_rafield@platts.com
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