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NYMEX-Crude oil dips as U.S. inventories seen rising

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Published: Monday, 1 Apr 2013 | 9:04 PM ET

PERTH, April 2 (Reuters) - U.S. crude futures slipped in early Asian trading on Tuesday after data showed an unexpected slowdown in U.S. manufacturing and on expectations that oil inventories would continue to rise in the world's largest energy consumer.

The shutdown of Exxon Mobil's Pegasus pipeline, which carries Canadian crude through the U.S. Midwest to the Gulf Coast was seen adding to an already oversupplied U.S. oil market.

FUNDAMENTALS

* U.S. crude for May delivery had fallen 18 cents to $96.89 per barrel at 0041 GMT on Tuesday.

* Brent crude dropped 17 cents to $110.91 per barrel.

* Exxon Mobil's Pegasus pipeline, which can carry more than 90,000 barrels per day of Canadian oil through the U.S. Midwest to the Gulf Coast, has been shut since rupturing on Friday.

* A provisional poll of analysts and traders by Reuters showed a 2.3 million-barrel rise in crude oil stocks in the United States last week.

* The pace of expansion in the U.S. manufacturing sector unexpectedly slowed in March as the rate of new orders dropped.

* Demand for Saudi crude is likely to rise over the next few months, Saudi oil minister Ali Al-Naimi said on Monday, signalling that the world's largest oil exporter sees a recovery in its biggest export market, Asia.

* China's official purchasing managers index (PMI) came in at 50.9, the highest in 11 months, but economists expected bigger recovery from February's five-month low.

MARKETS NEWS

* Asian shares inched higher but were capped on Tuesday with the dollar vulnerable after unexpectedly weak U.S. factory data raised investor caution ahead of new indicators that could flag falling economic momentum.

DATA/EVENTS (GMT)

0743 Italy Markit/ADACI Manufacturing PMI

0748 France Markit Manufacturing PMI

0753 Germany Markit/BME Manufacturing PMI

0758 Euro zone Markit Manufacturing PMI

0800 Italy Unemployment rate

0900 Euro zone Unemployment rate

1145 U.S. ICSC weekly chain store sales

1200 Germany CPI

1345 U.S. ISM New York business activity

1400 U.S. Factory orders

1400 U.S. IBD/TIPP consumer confidence

(Reporting by Rebekah Kebede; Editing by Joseph Radford)

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The shutdown of Exxon Mobil's Pegasus pipeline, which carries Canadian crude through the U.S. *U.S. crude for May delivery had fallen 18 cents to $96.89 per barrel at 0041 GMT on Tuesday. *Exxon Mobil's Pegasus pipeline, which can carry more than 90,000 barrels per day of Canadian oil through the U.S.
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