Headlines
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Gold returns above 900$/oz level
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Worries that Chinese imports are to small send base metals down
Brent and Distillates
On Wednesday oil edged down after U.S. stocks rose more than expected, a forecast revised down oil demand and Saudi Arabia opted not to deepen supply curbs.
U.S. crude stocks rose 700 kb last week, above the consensus forecast for an increase of 400 kb, in spite of more refineries starting spring maintenance programmes. Refinery utilisation fell 0.4 % to 82.7%, slightly more than expected. Petrol consumption continued its recent improvement up 1.6 % compared with the same period a year ago, while petrol stocks dropped 3mln.b, well above the consensus forecast for a fall of 400 kb. Distillates stocks went up 2.1mln.b, above the forecast for no change.
U.S. Energy Secretary Steven Chu said on Wednesday he will speak to OPEC ministers before their meeting this weekend and warn them as they consider another oil production cut that high crude prices will harm the fragile world economy. OPEC members meet in Vienna on Sunday to discuss whether to lower oil output, which analysts believe will put upward pressure on world crude prices
China's crude-oil imports have fallen this year, as purchases for strategic reserves weren't enough to offset weaker domestic demand. General Administration of Customs showed the country imported the equivalent of 3.07 mln.b/d in February, down 17.9% from February 2008.
The U.S. EIA lowered its projection for 2009 global oil consumption by 3 mln.b/d against its previous estimates in September 2008. EIA expects world oil consumption to average 84.27 mln.b/d in 2009, the lowest level since 2005. At the same time, world oil production is forecast to average 83.53 mln.b/d.
Ecuador sees no need for OPEC to slash output more at its next meeting as compliance by cartel members has started to stabilize the oil markets, Oil Minister D. Palacios told Reuters on Tuesday. He said oil prices would probably average between 55 to 60$/b this year.
Gasoline and naphtha inventories in 16 European countries have fallen by 12.7 and 8.9 % respectively since the same time last year, February data from Euroilstock showed. Run cuts by refiners due to weak production margins earlier this year have seen gasoline and naphtha stocks tumble, a reflection of the drop in demand for oil products brought on by the global economic slowdown.
Deutsche Bank expects that oil prices may eventually top record highs hit in 2008 above 147$/b in the coming years as the world economy recovers.
French oil major Total was forced to restructure its domestic refining sector as it tries to deal with a surplus of gasoline and a shortage of diesel, the firm's authority said on Tuesday.
