IPE Brent climbs on US refinery problems, offsets bearish US data

IPE Brent climbs on US refinery problems, offsets bearish US data

London (Platts)--11May2006

IPE Brent futures in London extended gains Thursday led by US refinery
glitches that offset bearish US gasoline stock data, traders said.
At 1112 GMT, the June front-month IPE Brent futures contract traded at
$72.92/barrel, up 48 cents/barrel from Wednesday's close.
"The refinery glitches in the US have contributed to the rise despite the
gasoline builds," one London-based broker said.
Both the 225,000 b/d Valero Texas City refinery and the 238,000 b/d
ConocoPhillips refinery in New Jersey are reported to have glitches. The news
that Valero Texas City had a coker off line sparked a 10-cent rally in
gasoline on Wednesday that sent the front month contract to an intra-day high
of $2.15/gallon.
The complex rose sharply Wednesday despite headline numbers from the
Energy Information Administration in its weekly petroleum inventory report
that were not particularly bullish.
The EIA reported a 2.4 million barrel build in gasoline stocks, a 300,000
barrel increase in crude inventories and a 200,000 barrel jump in distillates.
Expectations were for a 1.2 million barrel draw in crude stocks and a 470,000
barrel decline was reported by American Petroleum Institute.
Analysts also anticipated a higher 1.5 million barrel increase in
gasoline stocks, while API reported a 922,000 barrel jump. Analysts projected
a 700,000 barrel increase in distillates stocks, and API reported 1.8 million
barrel increase.
However, the US Department of Energy on Wednesday reported unseasonably
strong US products demand just ahead of the summer driving and Atlantic
hurricane seasons.
Crude futures traders said the increase in speculator activity in not
just crude but other commodities has contributed to the rally seen in crude
recently.

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