11:46 EDT -- Nymex crude oil futures march above $93 a barrel as the
fuel's rally continued for a third day. Prices recently reached $93.69
a barrel, their highest intraday level since May 17 as supply concerns
boost prices. A tropical storm could threaten Mexican oil exports and
a pipeline explosion halted Iraqi oil flows to a key Turkish port. A
fire at a large Chevron refinery in California has pushed prices for
reformulated gasoline blendstock, or RBOB, as high as $2.9804 a
gallon. (nicole.friedman@dowjones.com)
Reported Earlier:
Nymex Crude Inches Up Ahead of Monthly Data
By Nicole Friedman
--Tropical storm could disrupt Mexican exports; pipeline explosion
halts Iraq oil flow to Turkish port
--EIA monthly oil report expected at noon
--Impact of California refinery fire unclear
NEW YORK--Crude-oil futures edged higher Tuesday as traders considered
potential supply issues and looked ahead to U.S. oil inventory data.
Light, sweet crude for September delivery was recently up 72 cents, or
0.8%, at $92.92 a barrel on the New York Mercantile Exchange. Brent
crude on ICE Futures Europe rose $1.07, or 1%, to $110.62 a barrel.
After reaching two-week highs Friday and Monday on
better-than-expected U.S. economic data, futures were trading quietly
Tuesday morning.
"We just seem to be plodding along this week, and given the positive
tone set, we're just plodding higher," said Matt Smith of Summit
Energy.
Global supply concerns helped support prices. Tropical Storm Ernesto,
which is expected to become a hurricane as it moves westward, could
disrupt oil production and shipping in Mexico this week. Ernesto is
forecast to reach the Bay of Campeche, a key area for Mexican oil
production, on Wednesday afternoon, according to the National
Hurricane Center.
About 11% of crude imports to the U.S. are from Mexico, according to
JBC Energy.
In addition, a pipeline explosion in the Middle East disrupted oil
flows from Iraq to the Turkish port of Ceyhan earlier Monday. Iraq was
pumping about 360,000 barrels a day before the blast.
Investors awaited fresh data Tuesday, with the Energy Information
Administration's monthly outlook on the oil market due for release at
noon EDT. The American Petroleum Institute will release its weekly
inventory estimate at 4:30 p.m. EDT, and the EIA inventory report will
come out Wednesday at 10:30 a.m. EDT.
Trading volumes remain low, with Monday's total volume at about 60% of
the 12-month average. Some skeptics are sitting out the current rally,
said Tim Evans of Citi Futures Perspective in a note to clients.
"Volumes have been declining since the first week of July, even as
prices have recovered, tending to suggest that the bears have only
stepped aside to gauge how far the market will bounce," he said.
Front-month September reformulated gasoline blendstock, or RBOB,
recently rose 1.58 cents, or 0.5%, at $2.9380 a gallon. September
heating oil rose 2.54 cents, or 0.9%, at $2.9663 a gallon.
A fire at Chevron's Richmond refinery in California broke out Monday.
A prolonged outage at the refinery--one of the largest in the
U.S.--could push up prices for crude-oil products in the U.S.,
according to analysts.
Write to Nicole Friedman at nicole.friedman@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
August 07, 2012 03:05 ET (07:05 GMT)
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