Headlines
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Lower crude price weighs on gold
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Base metals correct previous gains
Brent and Distillates
On Wednesday Brent returned below 50$/b and WTI lost more than 5$, dragging most of the rest of the commodities sector lower, after the U.S .government reported an important increase in crude oil and products inventories.
Crude oil inventories in the U.S. rose 6.7mln.b to 325.4mln.b, well above forecast of a small increase of 0.9mln.b.
Petrol inventories rose 3.3 mln.b to 211.4mln.b, well above a forecast of 800kb and also distillates stocks added 1.8 mln.b.
Venezuela is reducing crude shipments to U.S. refineries to comply with its OPEC output cut of 189 kb/d.
Middle East oil producing nations will reject Iran's call for Muslim countries to halt crude supplies to Israel's backers over the fighting in Gaza, Saudi Arabia's foreign minister said on Wednesday.
According to API the U.S. oil and natural gas industry spent an all-time high of 226.4 mld.$ in drilling expenditures in 2007, more than double the previous record amount set in 2006. The average per-well spending for oil wells increased 82% to 4 mln.$ in 2007, compared with 2.2 mln.$ in 2006. The average cost per natural gas well was 3.9 mln.$, up 105% from 2006.For the 20th year in a row, the industry spent more drilling for natural gas than oil, API said. In 2007, natural gas expenditures accounted for 53% of the total drilling expenditures, with oil accounting for 32% and dry holes for 15%.
Armed men attacked an oil platform belonging to ExxonMobil off Nigeria early on Wednesday, the latest sign that criminal gangs are extending their reach in Africa's top oil industry. Militants who say they are fighting for a fairer share of the oil wealth in the Niger Delta launched a campaign of sabotage and kidnappings three years ago which have cut Nigeria's oil production by around a fifth.
China will have to rely on imports for about 60% of its oil demand by 2020, up from 50% now, the Ministry of Land and Resources said in a report. The country plans to boost its own oil production to help meet demand, and to double gas output by 2015, but its reliance on imports will grow even faster.
