Oil futures surprisingly fell overnight after initially rallying following the release of US inventory data. US crude stocks fell a whopping 7.1 million barrels last week which saw prices rally nearly $1/bbl. Then reports came in that Hurricane Ivan was turning east and would have lesser impact on the crude platforms so prices fell. In other news OPEC agreed to increase the official production quotas by 1 million barrels per day, but this has no impact on the market as they are already producing 2 million barrels per day over.  Technically the market is again on the downtrend, but realistically it is more sideways. Trading on the after hours ACCESS this morning has WTI up 22 cents as traders view last nights movement as a dip.

 

US Dept of Energy Inventory Data (millions of barrels)

                                Weekly Change        Total                Yearly Change

Crude                                -7.1                 278.6                    -3.0

Gasoline                            -1.6                 202.5                   +7.6

Distillates                          +1.7                128.3                    +0.3

 

Singapore prices fell $0.45/bbl on more aggressive offers at the higher prices and bidders not being as aggressive. Hin leong continues to support the gasoil market whilst BP is supporting the kerosene market which remains very well offered. Expect prices to be down about 60 cents per barrel this morning.

 

Closing Prices Wednesday September 15, 2004:

 

WTI Oct                $43.58/bbl            -$0.81/bbl

WTI Nov                $43.51/bbl            -$0.83/bbl

Brent Nov              $40.35/bbl            -$0.83/bbl

IPE Gasoil            $393.00/t              +$0.50/t = +$0.07/bbl