Oil prices continued the slight fluctuation the market has seen all week, dropping 15 cents in Thursday morning trading as traders continued to watch Middle East developments.
Light sweet crude for September delivery was at $73.79 in midmorning Asian electronic trading on the New York Mercantile Exchange, after closing slightly higher after U.S. government data showed a large drop in gasoline supplies and no letdown was seen in Israeli-Hezbollah fighting.
Prices have bounced up and down all week as traders watched to see whether the violence would affect other countries in the oil-rich market. The conflict has killed hundreds in Lebanon and dozens in Israel.
In other Nymex trading Thursday, gasoline futures rose 1.62 cents to $2.2800 a gallon and natural gas futures were up 11.3 cents to $7.000 per 1,000 cubic feet. Heating oil futures fell slightly to $1.9540 a gallon.
In its weekly petroleum report Wednesday, the U.S. Energy Department said summer gasoline demand in the U.S. was almost 2 percent higher than last year despite $3-a-gallon pump prices. Gasoline inventories fell last week by 3.2 million barrels to 211 million barrels, just 500,000 barrels more than last year. Average U.S. refinery output declined, with nationwide gasoline production averaging just 9.1 million barrels per day.
Over the past four weeks, average U.S. gasoline demand was 9.6 million barrels a day, or 1.8 percent higher than last year.
The agency said crude oil inventories were flat last week at 335.5 million barrels, or 12.4 million barrels above last year. Meanwhile, the supply of distillate, which includes diesel and heating oil grew by 800,000 barrels to 131.9 million barrels, or 4.6 million barrels more than a year ago.
Italian oil and gas company Eni SPA said attackers raided an oil flow station in Nigeria's southern delta that is operated by its Agip subsidiary, causing a significant drop in the amount oil treated by the plant. Eni did not give specifics on how much production had been shut off.
Agip pumps about 200,000 barrels of oil per day in Nigeria, which usually produces about 2.5 million barrels daily as Africa's largest oil exporter and the fifth-largest supplier of crude to the U.S.
Attacks by militants who say they want a greater share of oil wealth on behalf of the delta's inhabitants have decreased production by more than 20 percent.
Oil prices hit a record $78.40 high on July 14, two days after fighting broke out between Israel and Hezbollah militants in Lebanon, on fears that the violence would escalate into a regional war and disrupt supplies, particularly from Iran, the Organization of Petroleum Exporting Countries' No. 2 supplier and a backer of Hezbollah.
Light sweet crude for September delivery was at $73.79 in midmorning Asian electronic trading on the New York Mercantile Exchange, after closing slightly higher after U.S. government data showed a large drop in gasoline supplies and no letdown was seen in Israeli-Hezbollah fighting.
Prices have bounced up and down all week as traders watched to see whether the violence would affect other countries in the oil-rich market. The conflict has killed hundreds in Lebanon and dozens in Israel.
In other Nymex trading Thursday, gasoline futures rose 1.62 cents to $2.2800 a gallon and natural gas futures were up 11.3 cents to $7.000 per 1,000 cubic feet. Heating oil futures fell slightly to $1.9540 a gallon.
In its weekly petroleum report Wednesday, the U.S. Energy Department said summer gasoline demand in the U.S. was almost 2 percent higher than last year despite $3-a-gallon pump prices. Gasoline inventories fell last week by 3.2 million barrels to 211 million barrels, just 500,000 barrels more than last year. Average U.S. refinery output declined, with nationwide gasoline production averaging just 9.1 million barrels per day.
Over the past four weeks, average U.S. gasoline demand was 9.6 million barrels a day, or 1.8 percent higher than last year.
The agency said crude oil inventories were flat last week at 335.5 million barrels, or 12.4 million barrels above last year. Meanwhile, the supply of distillate, which includes diesel and heating oil grew by 800,000 barrels to 131.9 million barrels, or 4.6 million barrels more than a year ago.
Italian oil and gas company Eni SPA said attackers raided an oil flow station in Nigeria's southern delta that is operated by its Agip subsidiary, causing a significant drop in the amount oil treated by the plant. Eni did not give specifics on how much production had been shut off.
Agip pumps about 200,000 barrels of oil per day in Nigeria, which usually produces about 2.5 million barrels daily as Africa's largest oil exporter and the fifth-largest supplier of crude to the U.S.
Attacks by militants who say they want a greater share of oil wealth on behalf of the delta's inhabitants have decreased production by more than 20 percent.
Oil prices hit a record $78.40 high on July 14, two days after fighting broke out between Israel and Hezbollah militants in Lebanon, on fears that the violence would escalate into a regional war and disrupt supplies, particularly from Iran, the Organization of Petroleum Exporting Countries' No. 2 supplier and a backer of Hezbollah.
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