Oil prices in Asia regain some losses<\/p>\n
SINGAPORE (Reuters): Crude prices in Asia on Thursday bounced
\nhigher on bargain-hunting, regaining some of the losses made in
\nthe New York market, where prices dropped sharply on speculation
\nof an OPEC output rise soon.<\/p>\n
U.S. stocks data, which showed a fall in both crude and
\ngasoline stocks, as the nation heads into summer, helped shore up
\noil prices.<\/p>\n
July U.S. light crude futures in after-hours ACCESS was at
\n$29.14 per barrel by 0810 GMT, rising 13 cents from its New York
\nsettlement.<\/p>\n
In New York, the contract dropped $1.34, to end at $29.01.<\/p>\n
Latest data from the American Petroleum Institute (API),
\nreleased late on Tuesday, showed that crude stocks in the week
\nended May 26 fell 1.7 million barrels<\/p>\n
The data also showed reformulated gasoline stocks falling 1.3
\nmillion barrels in the same week, which could add to shortage
\nconcerns, as the U.S. launches the new, cleaner reformulated RFG
\n2 gasoline grade in nearly a third of its cities on Thursday.<\/p>\n
Concerns over possible supply shortages of RFG 2 had led NYMEX
\ngasoline futures prices to surge to a post Gulf War high of $1.09
\na gallon on Wednesday.<\/p>\n
But some analysts said gasoline service stations had probably
\nbeen stocking up, drawing down storage at tank farms which was
\nreflected in the stock numbers.<\/p>\n
There was also speculation that OPEC would look at increasing
\nproduction soon, as the 20-day average of its basket of seven
\ncrudes inch closer to the $28 limit. This had triggered the sell-
\noff in New York which pulled prices there sharply lower.<\/p>\n
OPEC ministers have said they were agreed on a mechanism
\nwhereby they would raise or lower output by 500,000 barrels per
\nday (bpd), if the 20-day average of OPEC's basket of crudes
\nstrays from a $22-$28 per barrel price band.<\/p>\n
The 20-day average was at $27.31 on Tuesday, while the daily
\naverage of the crude basket was $28.46.<\/p>\n
Iran's OPEC governor Hossein Kazempour Ardebili said on
\nWednesday oil market volatility might push the 20-day average of
\nOPEC's crude basket above $28 before the cartel meets on June 21.<\/p>\n
He said Iran would take its share of any increase in OPEC
\noutput triggered by a move of the 20-day average out of the $22-
\n$28 range.<\/p>\n
"We hope prices will remain within the $22-$28 price range but
\nif not, Iran would take its share of any automatic 500,000 bpd
\nincrease once $28 is breached," he told reporters in London.<\/p>\n
But U.S. Secretary Bill Richardson on Wednesday declined to
\ncomment on the speculation that OPEC would increase output.<\/p>\n
"I don't want to comment because I don't want to appear to be
\ntrying to influence OPEC," Richardson told Reuters, after a
\nspeech in Cleveland.<\/p>",
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