Oil traded near an eight-week high, reversing earlier losses, as the dollar weakened against the euro, prompting investors to seek better returns by purchasing crude contracts.
Crude rose after the dollar depreciated against most of its peers following the Reserve Bank of Australia’s unexpected decision to keep its benchmark interest rate unchanged and the Bank of Japan reduced its rate to between zero percent and 0.1 percent. U.S. gasoline and distillate fuel stockpiles probably declined last week as refiners cut runs, according to a Bloomberg News survey of analysts.
“Most people are paying more attention to the financial side rather than the fundamentals,” said Tetsu Emori, a commodity fund manager with Astmax Ltd. in Tokyo. “Low rates mean that more people will be looking to invest in risky assets and commodities and crude oil will be good candidates.”
Crude for November delivery was at $81.68 a barrel, up 21 cents, in electronic trading on the New York Mercantile Exchange at 2:45 p.m. Singapore time. The contract earlier fell as much as 32 cents, or 0.4 percent, to $81.15. Yesterday, it lost 11 cents to $81.47, the first drop in four days. Futures have gained 2.9 percent this year.
The dollar fell against the 16-nation euro, bolstering the investment appeal of commodities. The greenback was at $1.3713 to the common currency, after touching $1.3807 yesterday, the weakest since March 17.
Oil Supplies
Crude stockpiles in the U.S., the world’s largest oil consumer, probably gained 1 million barrels in the week to Oct. 1, according to the median of estimates from 11 analysts before an Energy Department report tomorrow. That would put inventories, previously at 357.9 million, at the highest level since Sept. 3.
Refineries are expected to have reduced operating rates by 0.45 percentage point from 85.8 of capacity, the lowest since April, according to the survey.
Gasoline stockpiles decreased 250,000 barrels last week, from 222.6 million, based on the survey. Distillate supplies, including heating oil and diesel, probably fell 1 million barrels from 173.6 million, the survey showed.
Brent crude for November settlement was at $83.45 a barrel on the London-based ICE Futures Europe exchange, up 17 cents, or 0.2 percent. Yesterday, the contract dropped 47 cents, or 0.6 percent, to end the session at $83.28, snapping a four-day rally.
Houston Channel
The Houston Ship Channel will remain closed to most vessels until at least late today because of repairs to a damaged tower that supports power cables, according to the U.S. Coast Guard.
There’s been no change from an earlier estimate of when the channel would reopen, Richard Brahm, a Coast Guard spokesman, said today by telephone from Houston. Tankers bound for four refineries will be given priority once the shipping lanes reopen, Marcus Woodring, U.S. Coast Guard Houston and Galveston sector commander, said at a press conference in Houston yesterday. The closure costs the port about $322 million a day in lost revenue, Woodring said.
Valero Energy Corp.’s Houston refinery, Royal Dutch Shell Plc’s Deer Park plant, Pasadena Refining Systems Inc.’s facility and Lyondell Industries NV’s 302,000 barrel-a-day unit are potentially affected by the delay, Coast Guard Lieutenant Robert Cole said yesterday.
Eight of 24 inbound tankers were heading for refineries served by the Houston port and ship channel, according to Cole. There were seven tankers waiting to leave the port.
To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net
To contact the editor responsible for this story: Clyde Russell at crussell7@bloomberg.net.
http://jodnet.blogspot.com
Crude rose after the dollar depreciated against most of its peers following the Reserve Bank of Australia’s unexpected decision to keep its benchmark interest rate unchanged and the Bank of Japan reduced its rate to between zero percent and 0.1 percent. U.S. gasoline and distillate fuel stockpiles probably declined last week as refiners cut runs, according to a Bloomberg News survey of analysts.
“Most people are paying more attention to the financial side rather than the fundamentals,” said Tetsu Emori, a commodity fund manager with Astmax Ltd. in Tokyo. “Low rates mean that more people will be looking to invest in risky assets and commodities and crude oil will be good candidates.”
Crude for November delivery was at $81.68 a barrel, up 21 cents, in electronic trading on the New York Mercantile Exchange at 2:45 p.m. Singapore time. The contract earlier fell as much as 32 cents, or 0.4 percent, to $81.15. Yesterday, it lost 11 cents to $81.47, the first drop in four days. Futures have gained 2.9 percent this year.
The dollar fell against the 16-nation euro, bolstering the investment appeal of commodities. The greenback was at $1.3713 to the common currency, after touching $1.3807 yesterday, the weakest since March 17.
Oil Supplies
Crude stockpiles in the U.S., the world’s largest oil consumer, probably gained 1 million barrels in the week to Oct. 1, according to the median of estimates from 11 analysts before an Energy Department report tomorrow. That would put inventories, previously at 357.9 million, at the highest level since Sept. 3.
Refineries are expected to have reduced operating rates by 0.45 percentage point from 85.8 of capacity, the lowest since April, according to the survey.
Gasoline stockpiles decreased 250,000 barrels last week, from 222.6 million, based on the survey. Distillate supplies, including heating oil and diesel, probably fell 1 million barrels from 173.6 million, the survey showed.
Brent crude for November settlement was at $83.45 a barrel on the London-based ICE Futures Europe exchange, up 17 cents, or 0.2 percent. Yesterday, the contract dropped 47 cents, or 0.6 percent, to end the session at $83.28, snapping a four-day rally.
Houston Channel
The Houston Ship Channel will remain closed to most vessels until at least late today because of repairs to a damaged tower that supports power cables, according to the U.S. Coast Guard.
There’s been no change from an earlier estimate of when the channel would reopen, Richard Brahm, a Coast Guard spokesman, said today by telephone from Houston. Tankers bound for four refineries will be given priority once the shipping lanes reopen, Marcus Woodring, U.S. Coast Guard Houston and Galveston sector commander, said at a press conference in Houston yesterday. The closure costs the port about $322 million a day in lost revenue, Woodring said.
Valero Energy Corp.’s Houston refinery, Royal Dutch Shell Plc’s Deer Park plant, Pasadena Refining Systems Inc.’s facility and Lyondell Industries NV’s 302,000 barrel-a-day unit are potentially affected by the delay, Coast Guard Lieutenant Robert Cole said yesterday.
Eight of 24 inbound tankers were heading for refineries served by the Houston port and ship channel, according to Cole. There were seven tankers waiting to leave the port.
To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net
To contact the editor responsible for this story: Clyde Russell at crussell7@bloomberg.net.
http://jodnet.blogspot.com
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