Oil prices fall amid weak China, German trade data

SINGAPORE – Oil prices fell in Asia Wednesday as dealers await the latest US supply report for clues about production levels, while weak Chinese and German trade data also weighed, analysts said.

US benchmark West Texas Intermediate for January delivery slipped 90 cents to $62.92 while Brent crude for January was down $1.01 at $65.83 in mid-morning trade.

“With the global supply glut, the main concern at the moment is the level of production in the US,” Daniel Ang, investment analyst at Phillip Futures in Singapore, told AFP.

“The US stockpiles report will be in focus to see if there is any change in production growth,” he said.

Analysts surveyed by the Wall Street Journal said they expected domestic inventories to have fallen by 2.7 million barrels in the week to December 5.

The American Petroleum Institute, an industry group, in its own survey however said stockpiles likely rose 4.4 million barrels.

It said refinery operations likely increased 1.6 percentage points to 94.6 percent of capacity.

The Department of Energy will release the official stockpiles report later Wednesday.

The department on Tuesday modestly reduced its 2015 US oil production forecast to 9.3 million barrels per day from the previous 9.4 million estimate.

Ang said German and Chinese trade data this week “have shown signs of dropping global demand and put pressure on oil prices”.

German exports slipped 0.5 percent month on month in October, while imports fell 3.1 percent. That came a day after China said exports grew just 4.7 percent year-on-year in November and imports dropped 6.7 percent.

Trade figures out of Germany and China, both major manufacturing giants, are closely watched for their impact on crude prices, especially the more internationally leveraged Brent contract.

source: business.inquirer.net

Oil firms seen to hike fuel prices by 50¢

MANILA, Philippines—Domestic oil prices are going up again following weeks of softness as global output appears steady despite surging demand from growing economies such as China—leading to concerns of an oil supply squeeze.

Beginning Tuesday morning, oil firms are expected to hike fuel prices by an average of 50 centavos per liter, industry sources said.

The estimated price increases will range from 45 to 55 centavos per liter for diesel and from 25 to 55 centavos for gasoline.

Excluding expected adjustments this week, the year-to-date net increase for gasoline and diesel stand at 69 centavos per liter and P2.23 per liter, respectively.

But as of Monday afternoon, oil firms had yet to make official announcements on a price increase.

Amid the market buzz, transport groups have expressed concern over the price hikes this week.

In a statement, the militant transport group Piston said oil prices should remain low due to expected weakness in US demand as a budget standstill has prompted the world’s largest economy to suspend non-essential government services.

The Department of Energy’s Oil Monitor noted that supply concerns had eased over diplomatic developments in oil-producing Iran and the ongoing US government shutdown, which began on Oct. 1.

But China thirsts for more oil. Increasingly consumer-driven economic growth in the world’s No. 2 economy had it overtaking the United States as the largest oil buyer in the international market. As China’s industries and motorists demand more fuel for power and for transport, global supplies are in for a squeeze, according to analysts.

source: business.inquirer.net

Survey: Gas prices up 12 cents in two weeks

(CNN) -- Gasoline prices have jumped another 12 cents over the past two weeks, according to a survey published Sunday.

The average price of a gallon of self-serve regular is now $3.81, the Lundberg Survey found.

It was less of a jump than the previous two weeks, when the price climbed 18 cents, said publisher Trilby Lundberg.

The average price found by the Lundberg Survey has jumped 30 cents in four weeks.

While crude oil is the biggest factor, events on the U.S. West Coast are helping keep retail prices up as well, she said.

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"Gasoline prices would like to peak soon because there is too much gasoline supply versus demand," Lundberg said, "except on the West Coast due to refinery maintenance projects.'

The higher prices on the West Coast "attract gallons from elsewhere in the country," impacting supply nationwide, she said. "So it creates a slightly tighter gasoline market for now."

"When those maintenance activities come to an end in the next few weeks, that will mean even greater gasoline supply versus demand," Lundberg said.

But the future of crude oil prices, the dominant factor in determining gas prices, remains unclear, she said.

"Of course, all of the real or perceived threats to Middle East oil continue to be in play, so it can't be known."

The gas price, a hot-button issue in the U.S. presidential race, is up 31 cents from the average a year ago, Lundberg said.

The Lundberg Survey tabulates prices at thousands of gas stations nationwide. It latest figures were collected Friday.

The city with the lowest average price in the latest survey was Denver, at $3.36. The highest was Los Angeles, at $4.35

Here are prices in some other cities:

-- Boston, $3.78

-- Philadelphia, $3.76

-- Atlanta, $3.72

-- Chicago, $4.08

-- Indianapolis, $3.77

-- Houston, $3.66

-- Las Vegas, $3.77

-- Seattle, $4.00

source: http://edition.cnn.com/2012/03/11/travel/gas-prices/index.html?hpt=us_c1