Headlines
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Weaker greenback pushes gold above 900$/oz level
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Base metals prices continue up in May
Brent and Distillates
Oil prices continued their way up on Monday trading firm in a 50-55$ range ahead of an OPEC meeting later this month in Vienna. Also preliminary industry estimates indicating that OPEC cut its production further last month.
Supply from the 11 members of OPEC bound by output targets declined to 25.52 mln.b/d from a revised 25.63 mln.b/d in March mainly due to disruptions to Nigerian output, according to the survey of oil firms, OPEC officials and analysts.
Oil companies are storing a record volume of oil at sea in giant tankers as world crude supply outstrips demand, and this floating oil lake is now so big that it is likely to keep a lid on prices for some time.
Shipping analysts estimate around 100 mln.b of crude and about 25 mln.b of refined products, such as gas oil, are held in fleets of Very Large Crude Carriers in Europe, West Africa, the U.S. Gulf and off Asian ports.
According to the Energy Information Administration U.S. crude oil imports in February decreased by 647 kb/d, i.e. 6.6 %, from the month before to 9.205 mln.b/d, the lowest February level in two years.
U.S. oil demand in February fell to its lowest level for the month in 11 years, down 5.4 % from a year ago and 780 kb/d less than previously estimated.
China' consumption of oil products in the first quarter of 2009 fell 6.35% from the same period a year earlier to 57.35 mln.t, data released by the National Bureau of Statistics showed.
China's overall crude inventories expanded by 1 mln.t in March to the highest level since January 2008, but fuel stocks fell sharply as oil firms boosted sales both at home and overseas, a Xinhua newsletter showed on Monday.
Iraq will continue to seek foreign partners to help it boost its crude production to 6 mln.b/d in the next few years through oil bid rounds and direct negotiations, Deputy Prime Minister Barham Salih said last week.
The U.S Minerals Management Service has cut its forecast for Gulf of Mexico oil output over the next 10 years by 300 kb/d to between 1.6 mln. and 1.9 mln.b/d, the agency that regulates offshore oil development said on Monday
Mexico's state oil company, Pemex, is one of the few businesses to remain in operation as the government late Wednesday called for a five-day shutdown to fight the country's swine flu epidemic. All businesses and public offices that are not strictly essential to the economy should close from May 1-5, Health Minister Jose Angel Cordova said. The measure is the most drastic step yet taken by the government in its bid to spread the control of the disease
Royal Dutch Shell resumed operations at flowstations feeding into its Trans-Niger oil pipeline in southern Nigeria, two weeks after it was shut down due to a fire.
Russian oil product pipeline operator Transnefteproduct hopes to raise volumes this year by boosting exports despite weak global demand, its head said last week. Its first quarter volumes were 300-400 kt above the same period for 2008 due to higher shipments to foreign markets.
