Egypt, Elsewedy review progress on Ain Sokhna phosphate complex    US employment cost index 3.6% up in year to June 2025    Egypt welcomes Canada, Malta's decision to recognise Palestinian state    Pakistan says successfully concluded 'landmark trade deal' with US    Sterling set for sharpest monthly drop since 2022    Egypt, Brazil sign deal to boost pharmaceutical cooperation    Modon Holding posts AED 2.1bn net profit in H1 2025    Egypt's Electricity Ministry says new power cable for Giza area operational    Egypt's Al-Sisi, Italian defence minister discuss Gaza, security cooperation    Egypt's FM discusses Gaza, Nile dam with US senators    Aid airdrops intensify as famine deepens in Gaza amid mounting international criticism    Egypt exports first high-tech potato seeds to Uzbekistan after opening market    Health minister showcases AI's impact on healthcare at Huawei Cloud Summit    On anti-trafficking day, Egypt's PM calls fight a 'moral and humanitarian duty'    Egypt strengthens healthcare partnerships to enhance maternity, multiple sclerosis, and stroke care    Egypt keeps Gaza aid flowing, total tops 533,000 tons: minister    Indian Embassy to launch cultural festival in Assiut, film fest in Cairo    Egyptian aid convoy heads toward Gaza as humanitarian crisis deepens    Culture minister launches national plan to revive film industry, modernise cinematic assets    I won't trade my identity to please market: Douzi    Sisi sends letter to Nigerian president affirming strategic ties    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt, Somalia discuss closer environmental cooperation    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Oil rebounds from 5-month low, stocks weigh
Published in Daily News Egypt on 18 - 05 - 2010

LONDON: Oil rose more than 2.7 percent to $72 a barrel on Tuesday, recovering from a five-month low the previous session, but high inventory levels and the strength of the dollar were expected to limit gains.
US crude for June delivery rose $1.92 to $72 by 1409 GMT, after settling down $1.53 at a five-month low of $70.08 a day earlier. In earlier intra-day trading the contract was up as high as $72.52 a barrel.
London Brent crude for July rose 92 cents to $76.02 a barrel.
June crude has fallen 20.5 percent from its 19-month high $87.15 hit on May 3, which could indicate that crude prices may be in for a short-term bounce before resuming their downward path, technical analysts said.
"In 10 days we lost 20 percent, and you can't sustain that kind of fall, so this is a bit of a trend up in the $65-$75 range. We could go back down, and if we break a pretty hefty (downside) resistance at $69.30 I'd say we're clear to $65," said James Hughes, analyst at CMC Markets.
The outlook remains uncertain because of persistent investor concern over the euro and swollen US oil inventories, with the euro again caught in volatile trade near Monday's four-year low.
"We are getting close to the fair value for crude oil, but the problem remains the high contango level," said independent oil analyst Olivier Jakob at Petromatrix.
US crude futures for July are around $3 more per barrel than June front-month futures, with the June contract set to expire on Thursday.
Crude stockpiles at the delivery hub for the U.S. contract's West Texas Intermediate benchmark crude have risen in the last eight weeks to a record 37 million barrels, pushing front-month US crude down relative to later futures contracts and Brent.
"When stocks come close to capacity, traders try to get rid of front month contracts because of difficulties taking delivery of oil when no storage is available," said Global Oil Analyst Christophe Barret at Credit Agricole CIB in London.
US crude stockpiles likely rose last week as imports rebounded and refinery utilization held flat, a preliminary Reuters poll of analysts showed on Monday. Storage capacity at the Cushing, Oklahoma hub is thought to be around 41 million barrels, Barret said.
Ahead of weekly inventory data from industry group American Petroleum Institute (API) on Tuesday and the US government Energy Information Administration (EIA) on Wednesday, crude inventories were forecast 700,000 barrels higher on average last week.
The euro slipped against the dollar near a four-year low as investors worried that the euro zone debt crisis and austerity steps may hurt regional growth.
But analysts said tightening European credit default swaps, the market mechanism used to transfer credit exposure to fixed income assets between parties, had helped to improve the correlation between oil prices and the euro/dollar rate.
"When CDS spreads blew out in the euro zone, bond markets were rattled and concern grew on the euro as a reserve currency — at the time, the euro/dollar rate was a poor guide to the direction of the oil price," said Harry Tchilinguirian, senior commodity analyst at BNP-Paribas.
Euro zone finance ministers are ironing out a €750 billion ($925 billion) plan outlined a week ago to calm markets and stem fears of repeated Greek-style debt crises in the currency area.
"The European CDS spreads have come in a little with the latest package, and the correlation of oil to EUR/USD has improved," Tchilinguirian said. –Additional reporting by Judy Hua in Singapore


Clic here to read the story from its source.