Oil steadies ahead of inventory data
5:00AM
Thursday May 08, 2008
Oil took a breather below US$122 a barrel yesterday ahead of key US weekly inventory data, after hitting new record the previous day on supply concerns and a forecast of oil reaching over US$200 a barrel within two years.
US crude for June was down 21 cents at US$121.60 a barrel by 0647 GMT, off Tuesday's new intraday all-time high of US$122.73. The contract settled up US$1.87 at a record US$121.84.
London Brent crude was 17 cents lower at US$120.14 a barrel, down from the record US$120.99 hit on Tuesday.
"The market is in a waiting mode before US inventory data comes out," said Yusuke Seta of brokerage company New Edge.
A weekly US government report on fuel inventories is expected to show a 1.6 million barrel build in crude supplies, an 800,000 barrel rise in distillate inventories and a 100,000 barrel decline in gasoline stocks, a Reuters poll showed.
Analysts said a higher-than-expected draw in crude or gasoline stocks in the world's largest energy consumer could pull prices higher.
The US Energy Information Administration petroleum inventory data was due early this morning, New Zealand time.
Oil's new records on Tuesday extended a rally that has seen prices double over the past year, and led some experts to forecast a potential spike to US$200.
The forecast, in addition to continued tensions over Iran and Nigeria, sent prices higher.
Capping further price rises, the dollar edged up against the yen yesterday as gains in global stocks prompted some investors to wade back into riskier carry trades.
- REUTERS
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