Oil Rises an 8th Day as Gasoline Supplies Fall Amid Peak Demand
June 30 -- Crude oil rose for an eighth day in New York, the longest rally in more than a year, on concern peak gasoline demand during the Fourth of July weekend will strain fuel supplies that are below year-earlier levels.
A record 34.3 million Americans will travel during the Independence Day holiday weekend starting today, according to the AAA, the largest U.S. motor club. Gasoline stockpiles fell in the U.S. last week, ending a nine-week rise, even as the fuel became more expensive at the pump.
``Even though the gasoline price is high, the demand is not getting any less,'' said Tetsu Emori, a commodity strategist with Mitsui Bussan Futures Ltd. in Tokyo. ``That's an important sign that U.S. consumers will pay any price.''
Crude oil for August delivery rose as much as 33 cents, or 0.5 percent, to $73.85 a barrel in electronic trading on the New York Mercantile Exchange. It traded at $73.65 a barrel at 11:05 a.m. London time. Prices are up 30 percent from a year ago.
The contract climbed 1.8 percent yesterday to $73.52 a barrel, the highest close since May 2. Oil reached a record $75.35 on April 21 and April 24. Prices last gained eight days in a row in September 2004.
The Nymex will close its energy markets early today, at 1 p.m. New York time. The markets will remain shut for an extended holiday weekend, resuming electronic trading at 6 p.m. local time on July 4.
Eighteen of 34 analysts and traders, or 53 percent, surveyed by Bloomberg News said prices will rise next week.
$75 Expected
``Next week I expect to hit $75. This weekend really kicks off the summer holidays,'' said Mark Waggoner, president of Excel Futures Inc. in Huntington Beach, California. ``The Fed is going to be wary of raising interest rates any further,'' and that should help sustain growth, he said.
Brent crude oil for August settlement climbed as much as 47 cents, or 0.6 percent, to $73.35 a barrel on the London-based ICE Futures exchange. Brent touched $74.97 a barrel May 2, the highest since trading began in 1988.
The U.S. Federal Reserve yesterday raised interest rates by a less-than-expected quarter-point to 5.25 percent, raising expectations the Fed may limit future increases.
Hedge funds, which borrow against the value of their assets, may begin buying back into the crude oil market as the cost of financing shouldn't increase.
``Lower interest rates will spur the market players to reserve money from banks at a lower cost,'' said Naohiro Niimura, vice president for derivative products at Mizuho Corporate Bank Ltd. in Tokyo. ``They think they'll get a better return in the commodity markets than they get on the interest rates.''
Gasoline Surprise
U.S. gasoline stockpiles unexpectedly fell 1.1 million barrels last week, the first decline in nine weeks, leaving supplies at 212.4 million barrels, or 1.7 percent less than a year earlier, the Energy Department said on June 28.
More than half of the analysts and traders in the Bloomberg survey said a decline in gasoline inventories may lead to an increase in prices next week. Seven projected a decline and nine said futures will be little changed.
The July gasoline contract, which expires today, was down 1.48 cents at $2.28 a gallon in Nymex electronic trading, after settling yesterday at its highest close since Sept. 28. The more actively traded August contract was at $2.2247 a gallon, down 0.69 cent.
June 30 -- Crude oil rose for an eighth day in New York, the longest rally in more than a year, on concern peak gasoline demand during the Fourth of July weekend will strain fuel supplies that are below year-earlier levels.
A record 34.3 million Americans will travel during the Independence Day holiday weekend starting today, according to the AAA, the largest U.S. motor club. Gasoline stockpiles fell in the U.S. last week, ending a nine-week rise, even as the fuel became more expensive at the pump.
``Even though the gasoline price is high, the demand is not getting any less,'' said Tetsu Emori, a commodity strategist with Mitsui Bussan Futures Ltd. in Tokyo. ``That's an important sign that U.S. consumers will pay any price.''
Crude oil for August delivery rose as much as 33 cents, or 0.5 percent, to $73.85 a barrel in electronic trading on the New York Mercantile Exchange. It traded at $73.65 a barrel at 11:05 a.m. London time. Prices are up 30 percent from a year ago.
The contract climbed 1.8 percent yesterday to $73.52 a barrel, the highest close since May 2. Oil reached a record $75.35 on April 21 and April 24. Prices last gained eight days in a row in September 2004.
The Nymex will close its energy markets early today, at 1 p.m. New York time. The markets will remain shut for an extended holiday weekend, resuming electronic trading at 6 p.m. local time on July 4.
Eighteen of 34 analysts and traders, or 53 percent, surveyed by Bloomberg News said prices will rise next week.
$75 Expected
``Next week I expect to hit $75. This weekend really kicks off the summer holidays,'' said Mark Waggoner, president of Excel Futures Inc. in Huntington Beach, California. ``The Fed is going to be wary of raising interest rates any further,'' and that should help sustain growth, he said.
Brent crude oil for August settlement climbed as much as 47 cents, or 0.6 percent, to $73.35 a barrel on the London-based ICE Futures exchange. Brent touched $74.97 a barrel May 2, the highest since trading began in 1988.
The U.S. Federal Reserve yesterday raised interest rates by a less-than-expected quarter-point to 5.25 percent, raising expectations the Fed may limit future increases.
Hedge funds, which borrow against the value of their assets, may begin buying back into the crude oil market as the cost of financing shouldn't increase.
``Lower interest rates will spur the market players to reserve money from banks at a lower cost,'' said Naohiro Niimura, vice president for derivative products at Mizuho Corporate Bank Ltd. in Tokyo. ``They think they'll get a better return in the commodity markets than they get on the interest rates.''
Gasoline Surprise
U.S. gasoline stockpiles unexpectedly fell 1.1 million barrels last week, the first decline in nine weeks, leaving supplies at 212.4 million barrels, or 1.7 percent less than a year earlier, the Energy Department said on June 28.
More than half of the analysts and traders in the Bloomberg survey said a decline in gasoline inventories may lead to an increase in prices next week. Seven projected a decline and nine said futures will be little changed.
The July gasoline contract, which expires today, was down 1.48 cents at $2.28 a gallon in Nymex electronic trading, after settling yesterday at its highest close since Sept. 28. The more actively traded August contract was at $2.2247 a gallon, down 0.69 cent.
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