MARKET WATCH: Oil prices rebound in New York, London

Oil prices rebounded in trading on July 12, particularly on the New York market, while natural gas prices rose on forecasts of hot temperatures.

By OGJ editors
HOUSTON, July 13
-- Oil prices rebounded in trading on July 12, particularly on the New York market, while natural gas prices rose on forecasts of hot temperatures.

The American Petroleum Institute reported US crude stocks increased 2.3 million bbl for the week ended July 8 compared with the previous week. Gasoline stocks fell 1.58 million bbl, and distillate stocks rose by 4.75 million bbl.

The US Energy Information Administration on July 13 said US crude oil inventories, excluding those in the Strategic Petroleum Reserve, declined by 3.1 million bbl for the week ending July 8.

“At 355.5 million bbl, the US crude oil inventories are above the upper limit of the average range for this time of year,” EIA said.

The EIA reported gasoline inventories declined by 800,000 bbl while distillate fuel inventories increased by 3 million bbl.

Also on July 13, US Federal Reserve Chairman Ben Bernanke said the Fed is prepared to provide additional stimulus if the current economic lull persists.

“The market will likely have an open ear today toward Bernanke’s monetary policy testimony to Congress,” Raymond James & Associates Inc. said in a note issued before Bernanke’s comments.

Energy prices
The August contract for benchmark US sweet, light crudes rose $2.28 to $97.43/bbl July 12 on the New York Mercantile Exchange. The September contract gained $2.23 to $97.85/bbl On the US spot market, West Texas Intermediate at Cushing, Okla., was up $2.28 to $97.43/bbl.

Heating oil for August delivery gained 0.01¢ to hold steady at just under $3.09/gal on NYMEX. Reformulated blend stock for oxygenate blending for the same month rose 2.27¢ to $3.09/gal.

The August natural gas contract rose 4.5¢ to $4.33/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., dropped 1¢ to $4.368/MMbtu.

In London, the August IPE contract for North Sea Brent crude edged up 51¢ to $117.75/bbl. Gas oil for July held steady at $958.75/tonne.

The average price for the Organization of Petroleum Exporting Countries' basket of 12 reference crudes dropped 28¢ to $111.07/bbl.

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