Friday, August 10, 2007

Subprime crisis weighs on oil, fuel stocks support

from the South African Broadcasting Corporation (SABC)

Support from firm oil products prices helped oil to pare losses after touching one-month lows earlier in the day. Production of gasoline and other refined products fell last week as refinery capacity utilization declined amid fresh operational problems. Tight refined product supplies have helped crack spreads - the premium on refined products prices over crude oil - recover from recent lows. "The crack spreads continue to firm, mostly off of yesterday's drop in refinery utilization and strength in the crack spreads tends to be supportive of the entire oil complex," said Jim Ritterbusch of Ritterbusch and Associates in Galena, Illinois ...Further support for oil came from fresh signs that OPEC will not increase production at its September meeting despite calls from importers for more oil to avoid draining inventories in consuming nations. Output restraint at OPEC's largest producer, Saudi Arabia, appears unchanged. Saudi Arabia told customers in Japan and Europe today that it would keep oil supply levels unchanged in September.

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