Oil trims big­gest monthly de­cline

The Pak Banker - - Front Page -


Oil re­bounded, trim­ming the big­gest monthly de­cline since May, as re­finer­ies started re­sum­ing op­er­a­tions af­ter the At­lantic su­per­storm Sandy moved away from the US. East Coast.

Crude fu­tures gained as much as 1.1 per­cent af­ter ad­vanc­ing 0.2 per­cent yes­ter­day. Philadel­phia En­ergy So­lu­tions' 355,000 bar­rel-aday Penn­syl­va­nia re­fin­ery is restor­ing op­er­a­tions and NuS­tar En­ergy LP (NS)'s 74,000 bar­rel-a-day plant in Pauls­boro, New Jersey, will be at full pro­duc­tion to­mor­row, the com­pa­nies said. Seven re­finer­ies with a to­tal ca­pac­ity of 1.29 mil­lion bar­rels a day had shut or re­duced op­er­a­tions be­cause of Sandy.

"The hur­ri­cane is gone, and we now have to in­ves­ti­gate how much of an im­pact it had on the re­finer­ies," said Tetsu Emori, a chief fund man­ager at Ast­max In­vest­ment Man­age­ment Inc. in Tokyo. "Peo­ple in the mar­ket are un­will­ing to take fresh po­si­tions at the mo­ment, but they are also not will­ing to sell be­cause oil is cur­rently quite cheap and over­sold."

Crude for De­cem­ber de­liv­ery rose as much as 91 cents to $86.59 a bar­rel in elec­tronic trad­ing on the New York Mer­can­tile Ex­change, and was at $86.45 at 8:43 a.m. Lon­don time. Prices gained 14 cents yes­ter­day to $85.68, the high­est close since Oct. 26. Fu­tures are down 6.2 per­cent in Oc­to­ber and 12.5 per­cent this year.

Brent for De­cem­ber set­tle­ment rose 49 cents to $109.57 a bar­rel on the Lon­don-based ICE Fu­tures Europe ex­change. The Euro­pean bench­mark crude's pre­mium to the West Texas In­ter­me­di­ate con­tract was at $23.10, down from $23.40 yes­ter­day.

Oil may ex­tend gains in New York af­ter fu­tures set­tled above the lower Bollinger Band yes­ter­day for the third time in four days, sig­nal­ing tech­ni­cal sup­port, ac­cord­ing to data com­piled by Bloomberg. This in­di­ca­tor is at $85.02 a bar­rel to­day. Buy or­ders tend to be clus­tered near chart-sup­port lev­els.

Gasoline for Novem­ber de­liv­ery rose as much as 9.78 cents to $2.8266 a gal­lon in New York, the high­est level since Oct. 17. The con­tract ex­pires to­day. The more-ac­tive De­cem­ber fu­ture was up 3.04 cents at $2.6459.

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