Oil spot price set to jump on distillate demand

West Texas Intermediate (WTI) is currently trading at $97.70 a barrel, close to yesterday’s high, with the price supported by speculation that the US Energy Information Administration (EIA) will today report contracted distillate inventories last week as frigid weather continues to grip the world’s largest oil consumer.

The industry-funded American Petroleum Institute (API) yesterday reported that distillate stockpiles fell 1.46 million last week, gasoline inventories dropped 1.18 million barrels and crude oil stocks rose 384,000 barrels.

The EIA is due to announce the official data at 15.30 UTC today and analysts are picking distillate supplies, including heating oil and diesel, to have fallen 2.5 million barrels to 113.7 million last week, with gasoline stockpiles up 1.15 million and crude supplies 2.55 million.

WTI has risen during the past three weeks on weather-driven rising distillate demand and decreasing inventories and US weather forecasters are projecting sub-normal temperatures across most of the contiguous states at least till the 13th of the month. They also foresee heavy winter storms in some states.

World oil demand to grow in 2014 by OPEC

With global economic growth in 2014 projected to increase to 3.5 per cent from 2.9 per cent in 2013, world oil demand is forecast to rise by one million barrels per day, according to the latest monthly bulletin of the Organisation of Petroleum Exporting Countries (OPEC).

World oil demand is expected to grow by one million barrels a day (b/d) in 2014 compared with 900,000 b/d last year, supported by improved performances by the emerging economies and as the global economy continues to recover in general, it said.

"Oil demand growth continues to come mainly from non-OECD (Organisation for Economic Cooperation and Development) countries, while OECD oil demand is expected to show a further contraction, albeit at a slower rate," OPEC's Monthly Oil Market Report (MOMR) observed.

Lower inventory levels send oil up above US$100

Crude-oil futures finished above US$100 a barrel on Friday after government data showed a greater-than-expected drop in inventory levels in the past week.

Crude for February delivery rose 0.8% to finish at US$100.32 a barrel on the New York Mercantile Exchange, for a 1% gain on the week.

On the other hand, gasoline for January delivery dropped by less than a penny to settle at just under US$2.82 a gallon after trading higher for most of the day.

Libya Oil Output Decline Threatens Public Sector Pay

Libya’s government may stop paying civil servants by the end of the year as protests at petroleum facilities curtail the nation’s oil output to one-tenth of its capacity, a lawmaker warned today

The North African state is now producing 150,000 barrels a day, after losing 50,000 barrels in daily production yesterday because of strikes by workers and security guards

The loss of Libyan oil production should be the “real price driver,” in crude markets, Vienna-based JBC Energy said in a research note last week. U.S. threats to attack Syria compounded the impact of Libya’s supply disruption in pushing Brent crude to a six-month high of $117.19 a barrel on Aug. 28. Libya holds Africa’s largest proven oil reserves, according to BP Plc’s Statistical Review of World Energy

Crude Oil to go up

Crude oil can go up as traders fear that United states would launch air strike against #Syria that could last for days

USA to leave Saudi Arabia behind in terms of crude production

The U.S. Department of Energy recently released a message stating that in 2012 oil production in the country will increase by seven percent. America is opening up its resources and reviewing its energy policy

Click on link to read full article:

Oil near $85, before U.S. vote and China parley

Crude-oil futures rose gently Monday as traders continued to assess energy demand following Hurricane Sandy and anxiously awaited the U.S. presidential election and a meeting of China’s leadership

Click on Link to read full article:

Crude Oil Update

The nation's crude oil supplies fell slightly last week, the government said Wednesday

US crude oil supplies shrank by 100,000 barrels

Crude Oil

Sell Crude (CMP-5280/- INR) with SL of 5307/- for the target below 5235/- INR