LONDON, May 30: World oil prices paused on Wednesday, the eve of an energy report which was forecast to show rising American motor fuel reserves despite the start of the peak-demand US summer driving season.
Traders said the oil market was also taking stock of Tuesday’s heavy falls that stemmed from easing supply concerns in key producer Nigeria.
Brent North Sea crude for July delivery slipped 66 cents to $67.47 a barrel in electronic deals. It had shed $1.58 on Tuesday.
New York’s main oil futures contract, light sweet crude for delivery in July, firmed 15 cents to $63.30 a barrel in floor trading. On Tuesday the contract dived $2.05.
The latest weekly snapshot of US refinery activity and energy inventory levels was to be published on Thursday, one day later than usual owing to a public holiday in the US last Monday.
“The market is waiting to hear the US inventory figures,” said Man Financial trader Adam Stone.
“We’re looking to see builds across the board.”
The US Department of Energy (DoE) will publish its update on energy stockpiles for the week ending May 25.
Crude oil prices had tumbled on Tuesday as supply concerns in Nigeria, the world’s sixth biggest producer of crude, had temporarily eased following news that unions in the country had suspended a two-day strike.
“However, despite this bearish news the market remains well supported by the threat of further militant attacks on oil facilities in the region, which have already shut in around 25 per cent of the country’s oil output,” said Sucden analyst Michael Davies.
Analysts warned that the latest attacks in Nigeria, despite their limited impact, show that concerns about supply in Africa’s biggest crude exporter remain valid.
The market focus remains on the DoE report amid the summer driving season, which began on Saturday and sees Americans taking to the roads en-masse for their summer vacations.
Oil prices in London had leapt to almost $72 a barrel last week, energised in part by weak motor fuel stocks in the United States ahead of the driving season.
