News Agencies report that IPE Brent opened slightly up on Monday morning on $24.85 after closing on Friday on $24.74 and in the absence of any market shaping news, traders will look forward to the API report on Wednesday.
Analysts say keen attention will be paid to the gasoline stock levels and capacity utilisation while it will also be interesting to see if crude stocks continue to build and it is hoped that any defining statistics will percolate to the trading pits where business has been listless for a week, according to News Agencies.
Lawrence Eagles of GNI Research said current supply and demand figures suggest a weaker market at the minute, but it will be another month before we can determine OPEC’s compliance with the last cut.
Iran and Kuwait, meanwhile, have both been accused of maintaining exports at pre April levels.
Gasoline was boosted by forecasts of deja vu from the director of the EIA’s petroleum division, John Cook, who said stock levels were the same or even less than last year.
The obvious implication being that drivers in some regions, possibly the mid west and on both seaboards could face the violent price swings that caused prompted a Federal Trade Inquiry into price fixing.
Over the weekend Shell Singapore announced it was cutting its refinery runs by 20 percent, while Indonesia started its 125,000 bpd refinery at Balongan at 60 percent of it capacity.
BP, meanwhile, said that its 65,000 bpd products pipeline from Houston to Cushing Oklahoma was slated to restart fully on Sunday.
© 2001 Mena Report (www.menareport.com)