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Crude Oil Prices Close Higher

Posted on: Thursday, 12 January 2006, 09:00 CST

Crude oil prices close higher

NEW YORK, Jan. 11 (Xinhua) -- Crude oil prices closed higher despite an Energy Department's report showing ample fuel supplies for the winter heating season.

New York's main oil contract, light sweet crude for delivery in February, hit a high for the day of 64.80 dollars a barrel before closing 57 cents up at 63.94 dollars.

In London, the price of Brent North Sea crude for February delivery added 25 cents to end at 62.17 dollars a barrel.

Gasoline futures fell by 0.4 cent to settle at 1.7331 dollars a gallon on Nymex, where heating oil futures retreated 1.08 cent to close at 1.7271 dollars per gallon. With above normal temperatures in parts of the U.S., natural gas futures fell 9.8 cents to settle at 9.238 dollars per 1,000 cubic feet.

Oil prices turned higher after the Energy Department's weekly update on fuel inventories. U.S. distillate stocks rose 4.9 million barrels to 133.8 million. Market watchers had forecast a much smaller increase in distillates of some 2.2 million barrels, but recent temperate winter weather has curbed US demand for heating oil.

Gasoline stocks went up 4.5 million barrels to 208.8 million for the week ended January 6, far more than the expected 1.6 million barrels.

The Department of Energy said crude inventories fell 2.9 million barrels to total 318.7 million in the week ended January 6. Oil traders had expected a smaller drop of 600,000 barrels, owing to increased refinery activity.

Last week, refineries used 89.8 percent of their capacity, the same level from the previous week, and processed 19,000 more barrels per day. On a four-week basis, refinery inputs are 1.8 percent below last year.

Iran's move to resume nuclear research after two years of voluntary suspension also fueled the rise in oil prices Wednesday. The U.S. condemned Iran's move and suggested the United Nations might impose sanctions. Germany plans to meet with British and French officials in Berlin on Thursday to discuss their actions.

Source: Xinhua News Agency - CEIS

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