Oil steady as traders digest fall in US crudeAFX News Limited
Oil steady as traders digest fall in US crude stocks, rise in gasoline supplies
06.01.07, 6:57 AM ET
LONDON (Thomson Financial) - Oil was steady in quite trade as traders continued to digest US inventory data released yesterday which showed a surprise fall in crude oil stocks and a rise in gasoline inventories.
'People are probably a bit confused by the price action over last couple of days, especially yesterday's daily action. People are not confident of the outright direction at the moment,' said Base Commodities trader Tony Machacek.
Oil rose yesterday after the US Energy Information Administration said crude stocks fell by 2 mln barrels in the week to May 25. Analysts had expected a 1.1 mln barrel rise.
However, the agency also said gasoline inventories rose for the fourth time by 1.3 mln barrels last week, largely in line with market expectations of a 1.1 mln barrel gain.
Gasoline is on focus at present as the US has entered the peak demand driving season, when motorists take to the roads for the summer vacations.
'I suppose the fall in US crude stocks is underpinning (but) I think gasoline is more important,' said Machacek.
At 10.31 am in London, benchmark Brent crude contracts for July delivery were down 15 cents at 67.89 usd a barrel.
Meanwhile, New York crude contracts for July delivery were up 5 cents at 64.06 usd a barrel.
maytaal.angel@thomson.com