Expert says bunker prices to remain mixed
The Bunker Review is contributed by Marine Bunker Exchange
West Texas Intermediate slid from a three week high after government data showed U.S. crude inventories expanded as production increased to a 28-year peak. Futures fell as much as 0.6 percent in New York, the first drop in four days. Crude stockpiles rose to a near record last week as output climbed to the most since 1986, the IEA reported. Demand for OPEC’s crude will be higher in second half of the year than previously estimated following stronger than expected fuel use in developed nations.
Brent future contract for June settlement, which expires today, was 6 cents higher at $110.25 a barrel on the London based oil exchange ICE. The European benchmark crude was at a premium of $8.28 against WTI. The July contract was down at $109.27. Brent crude oil is now well above $110 a barrel on Thursday near the highest in nearly three weeks as ongoing concerns over the crisis in Ukraine outweighed mixed U.S, oil inventory data. Some analysts are forecasting Brent could rise to $115-118 a barrel by the end of next week, while U.S. crude could climb to $106 a barrel.
There are more reasons to sell rather than to see U.S. oil push up to $106 per barrel. Inventory levels are at 25-year high, Libya is coming on tap. Although uncertainties over
Libya’s oil exports and progress between Iran and Western powers over Tehran’s nuclear program are among the background concerns for the market.
Production at Libya’s El feel oilfield has restarted the National Oil Corp (NOC) said on Wednesday, but output from the 340 000 barrel per day El Sharara oilfield was still halted because protesters had yet to open the pipeline to Zawiya port.
Iran and six world powers started three days of talks in Vienna on Wednesday aimed at drafting an agreement for Tehran to curb its controversial nuclear program in exchange for a phased end to the crippling sanction that have cut its oil exports in half over the last two years.
Oil prices are expected to go sideways next week.
All prices stated in USD per metric ton
All time high Brent = $147.50 (July 11, 2008)
All time high Light crude (WTI) = $147.27 (July 11, 2008)
