Oil sinks below $70 on inventory jump

[notiCIas]

Oil sinks below $70 on inventory jump

Crude prices sink nearly $1 after EIA report reveals surprising jump in gasoline. Oil stocks are at highest level in nearly 8 years.

May 10, 2006: 10:55 AM EDT


NEW YORK (CNN/Money) - Oil prices fell below $70 a barrel Wednesday after a government report revealed a surprising jump in both gasoline and crude inventories.

U.S. light sweet crude for June delivery fell 89 cents to $69.80 Just before the Energy Information Administration (EIA) released its report, the contract was down 14 cent at $70.55.

In the previous session, crude prices climbed 92 cents to close at $70.69 a barrel.

Total motor gasoline inventories rose by 2.4 million barrels for the week ended May 5, putting them just above the lower end of the average range. Gasoline inventories were expected to climb by 1.2 million barrels last week according to a Reuters survey.

Gasoline supplies and refining capacity have been closely watched over the last few months as a switch in blends right before the summer driving season has caused fears of a shortage and helped lift prices. The average price for regular unleaded gasoline rose more than a penny Wednesday to $2.89 a gallon, according to AAA.

Refining capacity reached 90.2 last week, according to EIA, reaching its highest refining capacity since last December.

Crude oil inventories climbed by 300,000 barrels from last week, versus forecasts for an decline of 600,000 barrels according to Reuters. At 347.0 million barrels, U.S. crude oil inventories are at the highest level since May 1998, and are well above the upper end of the average range for this time of year.

Oil prices have remained near record highs partly due to supply concerns, including Iran's dispute with the West over its nuclear ambitions. Investors have feared that the world's fifth-largest oil producer could cut off oil heading to the marketplace if the confrontation escalates.

Distillate fuel inventories rose by 200,000 million barrels last week, and are just above the upper end of the average range for this time of year. The news service reported that and distillates were expected to drop by 300,000 barrels.

[Mr. Turn]

Amigo News:
Ou eu não sou deste filme ou então não entendo porque motivo o Petróleo está a subir quase 3%!  Já sei, agora é o Irão, blá, blá, blá.
O que vale é que há sempre explicações para todos os gostos, porque não ligar mais á Análise tècnica e acrescentar simplesmente: "A tendência dominante continua a ser de alta". Parece ser bem mais simples arranjar esta singela explicação...
Cumprimentos.
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