Headlines
-
Gold nearer to 900$/oz level
-
Base metals prices higher as China may boost demandBrent and Distillates
Brent and Distillates
On Wednesday crude prices rose strongly on evidence that U.S. stocks diminished and petrol demand was improving.
U.S. crude stocks fell 700 kb last week, confounding the consensus market forecast for a rise of 1.2 mln.b. Gasoline demand continued its recovery, averaging 9.03 mln.b/d over the past four weeks, up 2.2 % compared with the same period a year ago. Its stocks rose 200 kb compared with the consensus forecast for a drop of 800 kb. Also distillate inventories rose 1.7mln.b, against the consensus forecast for a fall of 700 kb.
Saudi Arabia has raised official selling prices for all crude grades that it will export in April. The kingdom will charge U.S. customers a premium for its heavy, sour crude over WTI for the first time in at least 10 years.
U.S. oil demand growth in 2008 declined at its fastest rate since 1980, dropping 1.208 mln.b/d to 19.472 mln.b/d according to data released by the U.S. EIA reflecting the largest downturn in the broader economy in 27 years. Also gasoline demand in 2008 fell 3.47% y/y, or down 322 kb/d to 8.964 mln.b/d. Distillate demand was down 6.15%, or 258 kb/d lower at 3.938 mln.b/d.
Doubts are growing that Mexico can halt a fouryear decline in crude oil production after its January oil output slumped to a more than 13-year low, due to bureaucratic delays and technical challenges. Crude output in Mexico, dropped 9.2 % y/y in January to 2.685 mln.b/d, its lowest level since November 1995 and just below state oil company Pemex's 2009 target of 2.7 to 2.8 mln.b/d.
Royal Dutch Shell shut a number of oil installation at its Nigerian business following explosions on a pipeline.
BP can maintain an average oil and gas production growth of between 1-2% y/y until 2020 without any further discoveries after replacing 121% of its production last year. In a strategy update, BP said it added 1.7 mld.b of new oil and gas to its reserves base last year, taking its year-end 2008 reserves to 18.2 mld.b and a resource base of 43.4 mld.b.
China will consolidate its refining sector as small oil refineries will either be forced out of business or be taken over by majors. The comment from head of the National Energy Administration, comes amid falling fuel demand in China which is pushing for its stateowned oil majors to build new and bigger refineries.
