The Financial Herald reported that oil rose for the first time in four days in New York as US crude inventories were forecast to drop, a storm headed for the Gulf of Mexico and a fire continued to burn at Venezuela’s biggest refinery.
According to a Bloomberg News survey before an Energy Department report, US crude stockpiles probably fell by 2 million barrels last week or 0.6%. Tropical Storm Isaac was near hurricane strength as it headed for the Gulf coast. Storage tanks burned for a fourth day at Venezuela’s 645,000 barrel per day Amuay plant where an August 25th 2012 gas explosion killed 48 people. Oil also increased before a US Federal Reserve symposium in Jackson Hole, Wyoming on August 31st 2012.
Mr Andrey Kryuchenkov an analyst at VTB Capital in London said that “Crude trade will remain jittery this week as storm related disruptions and refinery and storage tank fires in Venezuela keep investors on edge. On top of that we have expectations of action from central bankers.”
According to the median of 11 analyst estimates before the Energy Department’s report, US crude inventories may fall for a fifth week, the longest run of declines since July 2011. The decrease would leave inventories at the lowest level since March 23. Gasoline supplies may have fallen 1.4 million barrels and distillate stockpiles, a category that includes diesel and heating oil probably rose 400,000 barrels.
Gasoline for September delivery advanced as much as 0.5% to USD 3.1714 a gallon on the New York Mercantile Exchange after climbing 2.5% to USD 3.1548, the highest settlement since April 30. The industry funded American Petroleum Institute will publish its supply report later.
Mr Hugo Chavez president of Venezuela said that in Venezuela, firefighters have put out one of the three blazes at the Amuay refinery and extinguished about 75% of another.
Mr Rafael Ramirez oil minister of Venezuela said that there is no structural damage to the processing units at the facility about 240 miles west of Caracas. Venezuela has 4 million barrels of inventories of gasoline and other petroleum products and continues to produce 735,000 barrels of gasoline a day at plants including nearby Cardon.
Source - The Financial Herald
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