Oil For September 2009 Delivery Falls After Rise In Crude Supplies

21 July 2009 (Last Updated July 21st, 2009 18:30)

Crude oil fell in New York for the first time in six days after a report showed supplies had risen in the US, Bloomberg reported. Crude oil for September 2009 delivery fell as much as $0.86, or 1.3%, to $64.75 a barrel on the New York Mercantile Exchange, and was at $65.17 at 11.1

Crude oil fell in New York for the first time in six days after a report showed supplies had risen in the US, Bloomberg reported.

Crude oil for September 2009 delivery fell as much as $0.86, or 1.3%, to $64.75 a barrel on the New York Mercantile Exchange, and was at $65.17 at 11.17am Singapore time.

On 21 July it rose $0.32 to end the session at $65.61, while the the August 2009 contract expired at $64.72 a barrel.

The industry-funded American Petroleum Institute (API) reported that US stockpiles increased last week for the first time since April 2009.

A Bloomberg News survey of analysts is expecting a government report to show crude supplies fell 2.1 million barrels. China Oil imports dropped 2.8% in June from May, customs data showed.

Crude prices increased 8.7% from 14 to 21 July as investors purchased futures on expectations of higher fuel demand. Optimism that the worst of the global recession is over followed gains in US leading economic indicators and as financial service companies said earnings had climbed.

China’s crude oil imports in June dropped to 16.6 million tons, or about 4.1 million barrels a day, from 17.01 million tons in May, the customs data showed.

The API said that US crude supplies increased 3.1 million barrels to 349.9 million barrels in the week ending 17 July. The group also reported that refinery utilisation dropped 2% to 84% of capacity.

The report said that inventories of gasoline increased 1.3 million barrels to 213.6 million. The Energy Department is expected to say that supplies increased by 650,000 barrels in the week ended 17 July, according to the analyst survey.

Gasoline for August delivery fell as much as 2.19 cents, or 1.2%, to $1.7901 a gallon. On 21 July it gained 2.26 cents, or 1.3%, to $1.812, the highest settlement since 1 July.

Brent crude for September settlement dropped as much as $0.61, or 0.9%, to $66.26 a barrel, on London’s ICE Futures Europe Exchange. It was at $66.57 a barrel at 11.13am Singapore time.

The API collects stockpile information on a voluntary basis from operators of refineries, bulk terminals and pipelines. The government requires that reports be filed with the Energy Department for its weekly survey.