Oil sinks on surge in U.S. crude<\/p>\n
Reuters, London<\/p>\n
Oil prices fell for a second straight session Wednesday on an
\nunexpected jump in U.S. oil inventories, countering forecasts of
\nleaner supply.<\/p>\n
International benchmark Brent crude oil fell 36 cents to
\nUS$26.10 per barrel by midday in London, while U.S. crude futures
\nslipped 41 cents to $26.88.<\/p>\n
Prices were already weaker on Tuesday after Israel withdrew
\nits troops from the West Bank city Hebron, raising speculation
\nthat Iraq may end an oil export embargo in support of the
\nPalestinians.<\/p>\n
Data published by the American Petroleum Institute showed
\ncrude oil imports to the United States hit a six-month high of 10
\nmillion barrels per day last week.<\/p>\n
Traders had predicted a fall due to recent disruptions in
\nVenezuela and Iraq, which are leading suppliers to the world's
\nbiggest energy consumer.<\/p>\n
"There is little doubt that the API report is bearish... but
\nthe Middle East is still a dominant factor in sentiment," said
\nLawrence Eagles of brokers GNI Research.<\/p>\n
Baghdad has said it will review its embargo on May 7, a month
\nafter it began, and will lift it if Israel makes an unconditional
\nwithdrawal from Palestinian controlled areas.<\/p>\n
Oil prices have jumped by a third since the beginning of this
\nyear as futures markets factored in a premium reflecting the risk
\nof the crisis spreading into the oil-rich Gulf region.<\/p>\n
Israeli troops have pulled out of most West Bank cities but
\nstill surround Palestinian President Yasser Arafat's compound in
\nRamallah and the Church of Nativity in Bethlehem, where some 30
\ngunmen are holed up.<\/p>\n
Despite the surprise jump in U.S. stocks last week, Mike
\nRothman of investment bank Merrill Lynch said he saw the first
\nsigns of tightening supply.<\/p>\n
"Depending upon the duration of Baghdad's self imposed export
\nhiccup... we're looking at the prospect of a large portion of the
\nstock build-up that took place earlier this year being greatly
\nreduced," he said.<\/p>\n
Global stocks of oil built up at the beginning of the year
\nbecause an unusually warm winter in the northern hemisphere
\ncombined with the economic slowdown to hit demand.<\/p>\n
Even if the Israeli-Palestinian conflict eases, oil traders
\nsee further potential for disruption to Iraqi supplies.<\/p>\n
Baghdad and the United Nations are due to start talks on
\nweapons inspectors returning to Iraq on Wednesday, and the
\nSecurity Council is expected to vote this week on a renewal of
\nIraq's oil-for-food deal under which it exports almost two
\nmillion barrels of oil daily.<\/p>\n
"There seems to be a reasonable risk that Iraqi oil flows
\ncould remain lower than forecast," Rothman said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/oil-sinks-on-surge-in-us-crude-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}