Oil prices eased below US$65 a barrel yesterday after hitting a new intraday high of US$65.30 over gasoline supply fears.
"With stock levels looking less prettier, gasoline will remain a key concern over the coming weeks," said Orrin Middleton, energy analyst at Barclays Capital in London.
The US inventories report on Wednesday showed a decline in gasoline stocks, triggering heightened concerns that a string of refinery shutdowns in the US will make it difficult for gasoline supplies to meet peak summer demand.
Market sentiment was cooled by a report from the International Energy Agency (IEA) forecasting slower global oil demand growth this year.
The Paris-based agency said in its monthly report yesterday that oil demand this year will be 150,000 barrels a day less then it expected, as China's oil demand continues to show signs of weakening.
Nevertheless, world oil demand will grow this year by 1.6 million barrels a day to 83.7 million barrels a day, IEA said.
Light, sweet crude fell US$0.13 to US$64.77 a barrel in electronic trading on the New York Mercantile Exchange after climbing to a session high of US$65.30.
Gasoline was trading at US$1.9035 a gallon (3.8 liters), up nearly US$0.01, while heating oil was down half a cent to US$1.8348.
Brent crude for delivery next month fell US$0.01 to US$63.98 on London's International Petroleum Exchange.
The IEA also warned that despite a rapid build in oil inventories during the first half of this year, more stocks are needed.
"Stocks have built rapidly in the first half of 2005, despite US$60 oil, but clearly, the market verdict remains more inventories are needed until investment responses catch up and demand patterns are clearer," the agency said.
Crude futures have risen 14 percent in the last three weeks, driven by an array of concerns about supply disruptions: US and Venezuelan refinery outages, the Atlantic hurricane season's impact on production in the Gulf of Mexico, the death of Saudi Arabia's King Fahd as well as tensions over Iran's nuclear program.
While oil prices are about 46 percent higher than a year ago, they would need to surpass US$90 a barrel to exceed the inflation-adjusted peak set in 1980.
The weekly US petroleum supply snapshot on Wednesday showed a drop in gasoline stocks by 2.1 million barrels to 203.1 million barrels, likely the result of at least seven US refinery outages in less than three weeks. It was sixth decline in a row for gasoline inventories.
Energy markets have been extremely jumpy about the refinery outages. Some traders said the troubles are evidence that the industry and its aging infrastructure are having difficulty maintaining output at high levels.
PROVOCATIVE: Chinese Deputy Ambassador to the UN Sun Lei accused Japan of sending military vessels to deliberately provoke tensions in the Taiwan Strait China denounced remarks by Japan and the EU about the South China Sea at a UN Security Council meeting on Monday, and accused Tokyo of provocative behavior in the Taiwan Strait and planning military expansion. Ayano Kunimitsu, a Japanese vice foreign minister, told the Council meeting on maritime security that Tokyo was seriously concerned about the situation in the East China and South China seas, and reiterated Japan’s opposition to any attempt to change the “status quo” by force, and obstruction of freedom of navigation and overflight. Stavros Lambrinidis, head of the EU delegation to the UN, also highlighted South China Sea
The final batch of 28 M1A2T Abrams tanks purchased from the US arrived at Taipei Port last night and were transported to the Armor Training Command in Hsinchu County’s Hukou Township (湖口), completing the military’s multi-year procurement of 108 of the tanks. Starting at 12:10am today, reporters observed more than a dozen civilian flatbed trailers departing from Taipei Port, each carrying an M1A2T tank covered with black waterproof tarps. Escorted by military vehicles, the convoy traveled via the West Coast Expressway to the Armor Training Command, with police implementing traffic control. The army operates about 1,000 tanks, including CM-11 Brave Tiger
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, said it expects its 2-nanometer (2nm) chip capacity to grow at a compound annual rate of 70 percent from this year to 2028. The projection comes as five fabs begin volume production of 2-nanometer chips this year — two in Hsinchu and three in Kaohsiung — TSMC senior vice president and deputy cochief operating officer Cliff Hou (侯永清) said at the company’s annual technology symposium in Silicon Valley, California, last week. Output in the first year of 2-nanometer production, which began in the fourth quarter of last year, is expected to
Taiwan’s drone exports surged past US$100 million in the first quarter, exceeding last year’s full-year total, with the Czech Republic emerging as the largest buyer, the Ministry of Economic Affairs said. Exports of complete drones reached US$115.85 million in the period, about 1.2 times the total recorded for all of last year, the ministry said in a report. Exports to the Czech Republic accounted for about US$100 million, far outpacing other markets. Poland, last year’s top destination, recorded about US$11.75 million in the first quarter. Taiwan’s drone exports have expanded rapidly in the past few years, with last year’s total
RSS