## crude on a roll before stocks data! ##

Crude on a roll before stocks data

By Upstream staff


Oil prices moved higher today, recovering some of the week's sharp losses ahead of US data expected to show heavy falls in crude and product stocks due to disruption from Hurricane Katrina.

US light crude increased 61 cents to $64.98 a barrel in early trade, after plunging $1.59 on Wednesday.

The market has fallen 8% from a record $70.85 last week, after industrialised nations began to tap emergency reserves. London Brent crude increased 59 cents to $63.48 a barrel.

Traders are looking to US government data on oil stocks due later today for further direction on the damage to the US oil industry, after the storm rampaged through the Gulf of Mexico last week.

Analysts surveyed by Reuters forecast a 6.4 million-barrel drop in weekly crude stocks, which would still leave them well above year-ago levels. The figures come a day later than usual because of a US holiday at the start of the week.

"We will see the bullish stats, which will show the effects of the hurricane on US crude and product stockpiles, so I believe prices will rise from here," said Naohiro Niimura, of Mizuho Corporate Bank.

Katrina shut most of US production in the Gulf of Mexico, stopped offloading of imports at the country's only port that can handle supertankers, and curtailed output at nearly two dozen refineries.

Three of eight refineries completely shut by Katrina were back in operation, while offshore oil production has recovered to 43% of the region's capacity.


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07 September 2005 21:29 GMT | last updated: 08 September 2005 08:20 GMT
Roll out the barrel: oil prices are holding steady live
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