IPE Brent rebounds as WTI moves back above $60/bbl

London (Platts)--3Nov2005

Brent crude futures on London's International Petroleum Exchange
rebounded prompted by the increasing likelihood of an restart at Shell's
Pernis refinery in Rotterdam and after NYMEX WTI pushed above $60/bbl, brokers
said. The front month December Brent futures contract rose 83cts to $59.25/bbl
and was trading at the intra-day high so far. "The Pernis restart will boost
demand for crude oil," one broker at Man Financial said.  
     Gasoil futures remained sluggish especially on the intermonth spreads
with the spread between November and December futures contracts trading out as
weak as $11.25/mt in contango but had recovered to around $9.75/mt in
contango. "With the warm weather in the US, demand for the heating oil
products is very weak," one IPE broker said. Gasoil futures on a flat price
basis were trading $15.50 higher at $545.75/mt, just shy of the intra-day high
so far.
      On Wednesday, the US DOE stock data was slightly bearish, with a larger
than expected build in crude stocks and a very small draw in distillates. U.S.
crude stocks rose 2.7 -mil bbl to 319.1-mil bbl last week, 50,000 bbl less
than analysts had expected. Distillates inventories, however, fell by 200,000
bbl, 800,000 bbl less than expectations.  
     Gasoline stocks increased by 1-mil bbl as refineries upped yield to  
an unprecedented 102.77%. The better-than-expected product
stock data came despite the slow recovery  in the US refinery system from
Hurricanes Rita and Katrina. Refinery capacity in use stood at just 82.4%.

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