Anymore moronic statements about cutting back supply and Iran will be history ;
LONDON (AFX) - US oil futures rose surpassing a six-week high amid concerns over adequate distillate supplies later in the year, and on comments from Iran calling for OPEC to rein-in overproduction, analysts said.
At 10.46 am, US July dated-contracts were up 22 cents at 55.29 usd, in pre-market deals.
Meanwhile, Brent July-dated futures contracts were up 14 cents at 54.30 usd.
'Distillate prices are pulling up oil prices because of worries over supply not meeting high demand during the fourth quarter,' when it is at its highest, said Investec analyst Bruce Evers.
Demand in all variants of distillate are higher; heating oil, jet fuel, and diesel.
'Concerns are appearing now at the beginning of the US 'summer driving season' when gasoline demand is at its highest, well ahead of the winter demand concerns,' Evers noted.
Last week, the US Department of Energy in its weekly report said distillate stocks rose only 700,000 barrels, less than expectations for a rise of 1.1 mln barrels.
The Agency also said distillate demand in the 4-weeks to May 27 was up 5.2 pct on the year, compared with overall petroleum demand growth of 1 pct.
Concerns over crude are already weighing on the market as predictions for fourth quarter crude oil demand are expected to rise to 85.8 mln barrels per day.
Dealers are keenly waiting for the outcome of OPEC's 136th extraordinary meeting next Wednesday in Vienna, where the cartel's oil ministers will decide forward production policy.
Already high oil prices were this morning also boosted by bullish comments by Iran's representative to OPEC.
'We will ask all the OPEC members to return to the previously approved quota. Iran seeks bringing back some discipline to OPEC's production,' Hossein Kazempour Ardebili told the Shargh newspaper said.
The 11 members of OPEC are producing in excess of 30 mln bpd compared with an official fixed ceiling of 27.5 mln for the OPEC-10 (excluding Iraq), agreed in March.
'Comments such as these do not have much weight especially when oil prices are above 55 usd,' said Bache Financial broker Christopher Bellew.
