New York --2Aug2007 September crude futures on the New York Mercantile Exchange opened 28
cents lower at $76.25/barrel Thursday, extending Wednesday's losses which were
precipitated by the weekly US oil data. A larger-than-expected 6.5 million
barrel drop in US commercial crude stocks was overwhelmed by inventory builds
in distillates and gasoline.
"The data's twin takeaway is clear: tightness in global crude stocks is
quickly spreading to the US, as demand rises while supply growth remains
constrained by OPEC policy and Atlantic Basin production shortfalls, " Antoine
Halff, energy analyst at FIMAT, said in a report. "And however bearish the
product outlook may look, record high gasoline and diesel output, as refiners
scramble to make up for lost time, still leaves stocks uncomfortably lean on
the eve of hurricane season."
Technical factors fed into Wednesday's selloff as well -- the front-month
contract in crude hit an all-time high of $78.77/b, but the buying dried up
and longs were caught in a downdraft.
September RBOB opened 1.96 cents lower at $2.01/gal and September heating
oil opened 94 points lower at $2.06/gal.
cents lower at $76.25/barrel Thursday, extending Wednesday's losses which were
precipitated by the weekly US oil data. A larger-than-expected 6.5 million
barrel drop in US commercial crude stocks was overwhelmed by inventory builds
in distillates and gasoline.
"The data's twin takeaway is clear: tightness in global crude stocks is
quickly spreading to the US, as demand rises while supply growth remains
constrained by OPEC policy and Atlantic Basin production shortfalls, " Antoine
Halff, energy analyst at FIMAT, said in a report. "And however bearish the
product outlook may look, record high gasoline and diesel output, as refiners
scramble to make up for lost time, still leaves stocks uncomfortably lean on
the eve of hurricane season."
Technical factors fed into Wednesday's selloff as well -- the front-month
contract in crude hit an all-time high of $78.77/b, but the buying dried up
and longs were caught in a downdraft.
September RBOB opened 1.96 cents lower at $2.01/gal and September heating
oil opened 94 points lower at $2.06/gal.
