Tuesday, July 20, 2004

More reason to think George W. might thump his staff on the Strategic Petroleum Reserve rock in the fall and release a flood of oil onto the market.
Weekly US data from the Energy Information Administration are expected to show a 1.2m barrel rise in crude inventories, a 980,000 barrel drop in gasoline stocks and a 900,000 barrel increase in distillate inventories - much lower than in the previous two weeks.

Traders remained concerned that oil stocks in the US might not be building up quickly enough to cope with rising demand in the winter. Global oil stocks now represent only 69 days of forward cover compared with 80 days just three years ago.

"It is little wonder the market is so concerned over capacity shortages and potential supply disruptions when there is so much less of a buffer to counter them," said the Centre for Global Energy Studies.
Hey, the General can do a little fortune-telling as well.


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