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Oil dips on buzz of rise in US energy reserves

Oil dips on buzz of rise in US energy reserves
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First Published: Wed, Jun 27 2007. 11 51 AM IST
Updated: Wed, Jun 27 2007. 11 51 AM IST
AFP
Singapore: Oil prices weakened in Asian trade on 27 June as the market waited for the weekly US energy report where expectations are for a further rise in petroleum reserves, dealers said.
At 10:20am (07:50 IST), New York’s main contract, light sweet crude for August delivery, was down nine cents to $67.68 a barrel from its close of $67.77 in late US trades. Brent North Sea crude for August eased seven cents to $70.10.
“People are expecting an increase in inventory so traders are taking profits,” said Tetsu Emori, chief commodities strategist with Mitsui Bussan Futures in Tokyo.
“For crude oil and gasoline (petrol), they are expecting a rise,” he said.
The US Department of Energy (DoE) is due to release its weekly report later on 27 June with crude and gasoline reserves the main items closely watched by the market.
Gasoline reserves are in focus amid the current US summer driving season where demand typically peaks with many Americans taking to the roads for their vacaton.
Oil prices were also dampened by news that US energy giant Chevron has resumed operations at its facility in southern Nigeria that was shut down two weeks ago because of community unrest.
“We have restored output of 42,000 barrels of crude a day at the Abiteye flowstation,” a company spokesman said.
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First Published: Wed, Jun 27 2007. 11 51 AM IST