Oil Trades Above $72 on Gasoline Concern, Shipping Disruption
June 28 -- Crude oil traded above $72 a barrel in New York on concern rising demand and a shipping disruption may hamper efforts to increase U.S. summer fuel stockpiles.
An Energy Department report today will probably show gasoline inventories rose by 450,000 barrels last week, the smallest increase forecast by analysts in eight weeks. Gasoline futures reached a seven-week high after ConocoPhillips asked yesterday to tap the U.S. strategic reserve following an oil spill cut supplies from a Louisiana shipping channel.
``Gasoline demand doesn't seem to be affected by these high prices,'' said Chris Mennis, owner of oil broker New Wave Energy in Aptos, California. ``And now we've got four refineries affected by a spill.''
Crude oil for August delivery was at $72.12 a barrel, up 20 cents, in after-hours electronic trading on the New York Mercantile Exchange at 9:09 a.m. in Sydney. Prices today are 24 percent higher than a year ago.
Yesterday, the August contract reached $72.50, the highest intra-day price in almost three weeks. It ended the session up 12 cents at $71.92 a barrel, the highest close since June 6.
ConocoPhillips, the second-largest U.S. oil refiner, asked for 500,000 barrels of oil from the nation's strategic petroleum reserve to supply its Westlake refinery in Louisiana.
The plant, along the Calcasieu Parish Ship Channel, has been operating at reduced rates since shortly after part of the channel was closed a week ago because of an oil spill, spokeswoman Lara Campbell said yesterday.
Shipping Delays
About 20 miles of the 60-mile channel, which connects the Lake Charles, Louisiana, port to the Gulf of Mexico, may be shut for as long as another four days, the U.S. Coast Guard said yesterday. About 40 ships were delayed as of June 26.
``It's another example of the vulnerability of the U.S. refinery structure,'' New West's Mennis said. ``It's not a hurricane but it is a supply interruption.''
Gasoline for July delivery was at $2.2010 a gallon in after-hours trading, after rising 1.97 cents, or 0.9 percent, to $2.1985 yesterday, the highest closing price since May 11.
The Energy Department is scheduled to release its report on last week's U.S. inventory levels at 10:30 a.m. in Washington.
Gasoline supplies probably rose for a ninth week, increasing 450,000 barrels, according to the median of 14 estimates in a Bloomberg News survey of analysts. Inventories rose 294,000 barrels in last week's report, the smallest increase in eight weeks, leaving supplies at 213.4 million barrels, 1.2 percent less than a year earlier.
June 28 -- Crude oil traded above $72 a barrel in New York on concern rising demand and a shipping disruption may hamper efforts to increase U.S. summer fuel stockpiles.
An Energy Department report today will probably show gasoline inventories rose by 450,000 barrels last week, the smallest increase forecast by analysts in eight weeks. Gasoline futures reached a seven-week high after ConocoPhillips asked yesterday to tap the U.S. strategic reserve following an oil spill cut supplies from a Louisiana shipping channel.
``Gasoline demand doesn't seem to be affected by these high prices,'' said Chris Mennis, owner of oil broker New Wave Energy in Aptos, California. ``And now we've got four refineries affected by a spill.''
Crude oil for August delivery was at $72.12 a barrel, up 20 cents, in after-hours electronic trading on the New York Mercantile Exchange at 9:09 a.m. in Sydney. Prices today are 24 percent higher than a year ago.
Yesterday, the August contract reached $72.50, the highest intra-day price in almost three weeks. It ended the session up 12 cents at $71.92 a barrel, the highest close since June 6.
ConocoPhillips, the second-largest U.S. oil refiner, asked for 500,000 barrels of oil from the nation's strategic petroleum reserve to supply its Westlake refinery in Louisiana.
The plant, along the Calcasieu Parish Ship Channel, has been operating at reduced rates since shortly after part of the channel was closed a week ago because of an oil spill, spokeswoman Lara Campbell said yesterday.
Shipping Delays
About 20 miles of the 60-mile channel, which connects the Lake Charles, Louisiana, port to the Gulf of Mexico, may be shut for as long as another four days, the U.S. Coast Guard said yesterday. About 40 ships were delayed as of June 26.
``It's another example of the vulnerability of the U.S. refinery structure,'' New West's Mennis said. ``It's not a hurricane but it is a supply interruption.''
Gasoline for July delivery was at $2.2010 a gallon in after-hours trading, after rising 1.97 cents, or 0.9 percent, to $2.1985 yesterday, the highest closing price since May 11.
The Energy Department is scheduled to release its report on last week's U.S. inventory levels at 10:30 a.m. in Washington.
Gasoline supplies probably rose for a ninth week, increasing 450,000 barrels, according to the median of 14 estimates in a Bloomberg News survey of analysts. Inventories rose 294,000 barrels in last week's report, the smallest increase in eight weeks, leaving supplies at 213.4 million barrels, 1.2 percent less than a year earlier.
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