An Energy Department report tomorrow may show unchanged inventories last week, stemming four weeks of gains, analysts said. In
``This weekend is Memorial Day in the
Crude oil for June delivery was at $66.18 a barrel, down 9 cents, in after-hours electronic trading on the New York Mercantile Exchange at 3:09 p.m. in
The June oil contract expires at the close of trading and jumped 44 cents a barrel more than its higher-priced July counterpart yesterday.
June oil rose $1.33, or 2.1 percent, to $66.27 yesterday, the highest close for the front-month future since April 27. The more-actively traded July contract was at $66.85, down 2 cents.
Brent Crude
Brent crude for July settlement was at $70.39 a barrel, down 10 cents, on the ICE Futures Exchange in
The difference in price, or spread, between the Brent oil contract and the West Texas Intermediate contract, the benchmark crude in
Gasoline demand in the U.S., the world"s biggest oil consumer, usually peaks between June and August as motorists take to the roads for summer vacations starting with the Memorial Day holiday on May 28.
Stockpiles of the motor fuel probably gained 1.5 million barrels last week, based on the median estimate from a Bloomberg survey of five analysts. Inventories held 195.2 million barrels on May 11, or 7.5 percent less than the five-year average.
``Builds in gasoline should be a bullish support for crude oil as more is being used,"" said Tom Hartmann, commodity broker at Altavest Worldwide Trading Inc. in Mission Viejo, California.
Gasoline Drops
Gasoline for June delivery was at $2.3980 a gallon, down 0.33 cent.
Given the ``enormous"" size of those stockpiles, oil should probably be trading around $65, Altavest"s Hartmann said. Fresh buying may be unlikely unless it can break above $68.50.
``We have a huge supply in the
In
`Destroy Pipelines"
``We will destroy the pipelines to and from that refinery to prevent it being operational until we have it under our control,"" Jomo Gbomo, a spokesman for the Movement for the Emancipation of the Niger Delta, said in an e-mail yesterday.
Oil and gas workers will stop work at Nigerian National Petroleum Corp. sites on May 24 to protest the sale of the government"s stake in the refinery to Bluestar Oil Services Ltd., a Nigerian group, for $561 million.
The Organization of Petroleum Exporting Countries, which supplies about two-fifths of the world"s oil, won"t increase output to meet summer driving demand, officials from
``We are convinced that the market is not short of supply,"" Qatari Energy Minister Abdullah Al-Attiyah told reporters in the Persian Gulf nation"s capital of
OPEC pledged to reduce output by 1.7 million barrels a day last year. The group, excluding
PIN/BLOOMBERG.COM
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