NYMEX crude opens 42 cents higher on Brent rally

Chemical News: NYMEX crude opens 42 cents higher on Brent rally

https://www.chemnet.com Sep 29,2007 Platts
November crude futures on NYMEX opened 42 cents higher at $83.30/barrel Friday, pulled up by a rally in front-month ICE Brent. Brent continued its bull run and hit an all-time high of $81.05/b Friday morning, after settling at a record level Thursday.

WTI has strengthened since Wednesday despite an unexpected gain in commercial inventories. One bullish driver is that stocks at Cushing, Oklahoma--home of the NYMEX delivery point--fell 200,000 barrels to 18.1 million barrels, the lowest since December 2005.

"The longer-term bullish campaign has not been based on just the US fundamentals, however, but on forecasts that global demand for crude oil might surge in the fourth quarter. The International Energy Agency, for example, set off a chain reaction of buying back in June when they raised their fourth quarter demand forecast from 87.49 million b/d to 88.04 million b/d," Tim Evans, analyst at Citigroup, said in a report.

October heating oil and RBOB contracts expire today. Both products opened unchanged, at $2.2521/gal and $2.0939/gal, respectively. October RBOB was trading down 9 points after opening.

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