Oil prices remained high in London trade Tuesday, ahead of publication of the latest set of US stocks figures from the American Petroleum Institute (API) and as Tropical Storm Debby heightened concerns about refinery problems.
Benchmark Brent crude for October delivery was trading in London at 31.20 dollars a barrel, 60 cents higher.
In New York on Monday, light sweet crude for September delivery climbed 48 cents to 32.47 dollars a barrel.
Last Tuesday, weekly figures from the API showed US crude oil stocks continued to hover around 24 year-lows, and the market remains particularly nervous about levels of heating oil stocks ahead of the winter months in the northern hemisphere.
Concerns about the ability of refineries to keep up with demand for specific products were exacerbated on Tuesday as Tropical Storm Debby whipped its way towards the giant 545,000 barrels per day refinery owned by Hovensa at St Croix in the Virgin Islands, dealers said.
In its daily note, GNI Research commented that consumers were "finally coming to terms with the fact that oil prices are likely to remain high for the foreseeable future."
Apart from demand in the United States, the world's leading oil consumer, GNI Research said anecdotal evidence suggested there was also "very good heating oil demand in Europe."
Further support for prices has come from dwindling expectations that Saudi Arabia will deliver on a pledge made in July to ensure an extra 500,000 barrels per day if needed to stabilise the market.
The bullish mood was slightly offset by news of rising Iraqi oil exports, while United Arab Emirates Oil Minister Obeid bin Seif al-Nassiri called on producers to cooperate to ensure price stability, saying 25 dollars a barrel was a "reasonable" price for crude oil. – (AFP)
© Agence France Presse 2000
© 2000 Mena Report (www.menareport.com)
