SINGAPORE, July 19 (Reuters) Oil prices were little changed on Thursday after resuming their march toward record highs a day ago on news of a surprise drop in weekly gasoline stocks in the United States.
London Brent crude for September was down 16 cents at $76.60 by 0325 GMT after climbing $1.23 a day ago. On Monday it came within 25 cents of its record high $78.65 after a three-week rally fuelled by speculative buying and a tight North Sea market.
U.S. light crude for August delivery which has risen by more than $7 over the past three weeks, was down 10 cents at $74.95 a barrel after a $1.03 jump on Wednesday that took it to its highest settlement since early August 2006.
Prices jumped a day ago after the U.S. Energy Information Administration showed that a 0.8 percentage point rise in refinery utilisation rates failed to prevent a decline in product stocks due to strong underlying demand and weaker imports.
Gasoline stocks fell by a hefty 2.3 million barrels in the week ended July 13, against expectations of a 900,000 barrels rise, leading to a 4 percent rebound in gasoline prices, which had slumped by 12 percent over the previous five sessions.
''The data showed surprising declines and we now have to prepare for more upside. There is good potential for Brent to test its record $78.65,'' said Sano Keiichi at Tokyo-based Sumitomo Corp.
Distillates stocks, also forecast to rise, fell by 200,000 barrels and crude oil stocks dropped by 500,000 barrels.
With crude inventories still sharply above average levels, however, OPEC has shown little sign of relenting on its supply curbs, supporting expectations of tightening conditions.
''Solid inventory draws come at a time when genuine concerns have been mounting over the adequacy of inventories for the remainder of the year,'' said Martin King from Calgary-based First Energy in a note.
Adding fuel to the fire, China's economy continued to gallop ahead, with annual GDP growth accelerating to 11.9 percent in the second quarter, a faster-than-expected pace showing increased fuel demand from the world's second-largest oil consumer.
China's crude oil imports in the first half of the year are up 11.2 percent from a year ago at 3.29 million barrels per day (bpd).
Renewed nuclear woes in Japan following an earthquake could also revive the country's slowing oil demand.
Japan's government may order the earthquake-hit nuclear plant run by Tokyo Electric Power Co. (TEPCO) -- the world's largest -- to stay shut for more than a year while a safety study is under way, the Nikkei business daily reported on Thursday.
TEPCO may need an extra 200,000 bpd of crude and fuel oil to make up for the lost power generation capacity, top refiner Nippon Oil Corp. estimated.
REUTERS GT VV1115
London Brent crude for September was down 16 cents at $76.60 by 0325 GMT after climbing $1.23 a day ago. On Monday it came within 25 cents of its record high $78.65 after a three-week rally fuelled by speculative buying and a tight North Sea market.
U.S. light crude for August delivery which has risen by more than $7 over the past three weeks, was down 10 cents at $74.95 a barrel after a $1.03 jump on Wednesday that took it to its highest settlement since early August 2006.
Prices jumped a day ago after the U.S. Energy Information Administration showed that a 0.8 percentage point rise in refinery utilisation rates failed to prevent a decline in product stocks due to strong underlying demand and weaker imports.
Gasoline stocks fell by a hefty 2.3 million barrels in the week ended July 13, against expectations of a 900,000 barrels rise, leading to a 4 percent rebound in gasoline prices, which had slumped by 12 percent over the previous five sessions.
''The data showed surprising declines and we now have to prepare for more upside. There is good potential for Brent to test its record $78.65,'' said Sano Keiichi at Tokyo-based Sumitomo Corp.
Distillates stocks, also forecast to rise, fell by 200,000 barrels and crude oil stocks dropped by 500,000 barrels.
With crude inventories still sharply above average levels, however, OPEC has shown little sign of relenting on its supply curbs, supporting expectations of tightening conditions.
''Solid inventory draws come at a time when genuine concerns have been mounting over the adequacy of inventories for the remainder of the year,'' said Martin King from Calgary-based First Energy in a note.
Adding fuel to the fire, China's economy continued to gallop ahead, with annual GDP growth accelerating to 11.9 percent in the second quarter, a faster-than-expected pace showing increased fuel demand from the world's second-largest oil consumer.
China's crude oil imports in the first half of the year are up 11.2 percent from a year ago at 3.29 million barrels per day (bpd).
Renewed nuclear woes in Japan following an earthquake could also revive the country's slowing oil demand.
Japan's government may order the earthquake-hit nuclear plant run by Tokyo Electric Power Co. (TEPCO) -- the world's largest -- to stay shut for more than a year while a safety study is under way, the Nikkei business daily reported on Thursday.
TEPCO may need an extra 200,000 bpd of crude and fuel oil to make up for the lost power generation capacity, top refiner Nippon Oil Corp. estimated.
REUTERS GT VV1115
Oneindia Login