BLBG: Oil Little Changed on Forecast U.S. Inventories Rose Last Week
Oil traded little changed before a report today forecast to show inventories in the U.S., the world’s largest energy consumer, rose from their highest level since 1990 as the recession reduced demand.
Crude oil stockpiles probably rose by 2.5 million barrels in the week ended April 17 from 366.7 million the previous week, the highest since September 1990, according to a Bloomberg survey before today’s Energy Department report.
“Crude stock levels are still historically very high,” said Christopher Bellew, senior broker at Bache Commodities Ltd. in London. “It would take something quite bullish in the inventory data to take us back over $50, and I don’t see that happening.”
Crude oil for June delivery traded at $48.63 a barrel, up 8 cents, in electronic trading on the New York Mercantile Exchange at 11:42 a.m. London time.
Japan’s crude oil imports fell in March for a fifth month, declining 18.4 percent from a year earlier to about 3.68 million barrels a day, a finance ministry preliminary trade report released in Tokyo showed. South Korea used 66.6 million barrels of oil products last month, down from 68.3 million barrels a year earlier, according to data from Korea National Oil Corp.
Yesterday, the industry-funded American Petroleum Institute reported that inventories declined 1.01 million barrels to 370.2 million last week, the first drop since March 6.
Energy Department
The Energy Department will probably show that gasoline stockpiles dropped 700,000 barrels from 216.5 million the prior week, according to the Bloomberg survey. Supplies of distillate fuel, a category that includes heating oil and diesel, probably fell by 1 million barrels from 139.6 million barrels.
Oil-supply totals from the API and DOE moved in the same direction 76 percent of the time over the past four years, according to data compiled by Bloomberg.
API collects information on a voluntary basis from operators of refineries, bulk terminals and pipelines. The Energy Department requires reports to be filed for its weekly supply survey.
“We will be increasingly hesitant to sell WTI below $46 a barrel,” said Olivier Jakob, managing director of consultants Petromatrix GmbH. “The oil fundamentals are still to blurry to overtake the influence of the global markets.”
Brent crude oil for June settlement gained as much as 50 cents, or 1 percent, to $50.32 a barrel on London’s ICE Futures Europe Exchange. It was at $49.86 a barrel at 11:35 a.m. London time.
