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.
ROLLER-COASTER RIDE: More than five earthquakes ranging from magnitude 4.4 to 5.5 on the Richter scale shook eastern Taiwan in rapid succession yesterday afternoon Back-to-back weather fronts are forecast to hit Taiwan this week, resulting in rain across the nation in the coming days, the Central Weather Administration said yesterday, as it also warned residents in mountainous regions to be wary of landslides and rockfalls. As the first front approached, sporadic rainfall began in central and northern parts of Taiwan yesterday, the agency said, adding that rain is forecast to intensify in those regions today, while brief showers would also affect other parts of the nation. A second weather system is forecast to arrive on Thursday, bringing additional rain to the whole nation until Sunday, it
CONDITIONAL: The PRC imposes secret requirements that the funding it provides cannot be spent in states with diplomatic relations with Taiwan, Emma Reilly said China has been bribing UN officials to obtain “special benefits” and to block funding from countries that have diplomatic ties with Taiwan, a former UN employee told the British House of Commons on Tuesday. At a House of Commons Foreign Affairs Committee hearing into “international relations within the multilateral system,” former Office of the UN High Commissioner for Human Rights (OHCHR) employee Emma Reilly said in a written statement that “Beijing paid bribes to the two successive Presidents of the [UN] General Assembly” during the two-year negotiation of the Sustainable Development Goals. Another way China exercises influence within the UN Secretariat is
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
Taiwan’s first drag queen to compete on the internationally acclaimed RuPaul’s Drag Race, Nymphia Wind (妮妃雅), was on Friday crowned the “Next Drag Superstar.” Dressed in a sparkling banana dress, Nymphia Wind swept onto the stage for the final, and stole the show. “Taiwan this is for you,” she said right after show host RuPaul announced her as the winner. “To those who feel like they don’t belong, just remember to live fearlessly and to live their truth,” she said on stage. One of the frontrunners for the past 15 episodes, the 28-year-old breezed through to the final after weeks of showcasing her unique