Oil tracks sideways above $30 a barrel<\/p>\n
LONDON (Reuters): Oil prices tracked sideways on Thursday
\nabove US$30 a barrel as dealers balanced concerns over the
\npossible release of U.S. government reserves against news of a
\nfall in exports from big Middle East producer Iraq.<\/p>\n
London Brent blend futures traded 16 cents higher to $30.27 a
\nbarrel and U.S. light crude was unchanged at $31.90.<\/p>\n
U.S. talk about potentially releasing some of its coveted oil
\nreserve was greeted bearishly at the open, but news that Iraq's
\nJune exports would be lower than expected helped reverse
\nsentiment on the volatile market.<\/p>\n
Prices remain well above the $25 a barrel target set by the
\nOrganization of the Petroleum Exporting Countries after the group
\nreleased additional crude last week.<\/p>\n
A host of potentially bearish news -- including OPEC's
\ndecision to raise output by 708,000 barrels per day (bpd), or
\nabout three percent -- has yet to dull the stubbornly bullish
\nmarket, each new statement seeming only to fan the flames.<\/p>\n
U.S. President Bill Clinton poured cold water on the market on
\nWednesday, saying he could again open up the coveted Strategic
\nPetroleum Reserve (SPR) to help refiners weather temporary supply
\nproblems and keep gasoline production flowing.<\/p>\n
Earlier this month, the U.S. Energy Department took the rare
\nstep of releasing 500,000 barrels of crude oil from the emergency
\nstockpile to Citgo Corp's refinery in Louisiana after a shipping
\naccident blocked crude oil shipments to the plant.<\/p>\n
"If I can find any other kinds of backlogs like there, where
\nthere is something I can do to get the flow going, I will do that
\nas well," Clinton told a news conference. He gave no indication
\nof whether such a move was imminent.<\/p>\n
Opening taps on the SPR would help U.S. refiners cope with
\ndemand for the new, super-green gasoline, which is now required
\nfor one-quarter of U.S. drivers.<\/p>\n
But the market received fresh support on Thursday from news
\nthat Iraq's exports were set to drop by about 450,000 bpd to 1.94
\nbpd this month due to reduced loadings at Turkey's Ceyhan port.<\/p>\n
Industry sources said tanker loadings at the port have been
\nhalted since Sunday due to short notice after the United Nations
\napproved Iraq's oil-for-food deal only last week.<\/p>\n
Crude prices have also been bolstered by strength in heating
\noil, pumped up by U.S. concerns of a potential Northeast region
\nshortage heading into the winter months.<\/p>",
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