OIL: hot. Oil prices surged, climbing over the $30 mark in London and the $31 mark in New York, after the surprise announcement of a fall in US stocks to their lowest levels since 1976.
In London, a barrel of Brent crude for September delivery was trading at $30.90 a barrel at midday Friday, compared with $28.85 the previous week. In New York, light sweet crude for September delivery rose to 31.34 dollars from 28.66 dollars the week before.
Prices were fired by the publication of the latest report from the American Petroleum Institute, showing crude oil stocks had fallen 2.144 million barrels to 282.6 million in the week to August 4 compared with the figvure the previous week and were 40.5 million barrels lower than a year ago.
Gasoline (petrol) stocks dropped 1.670 million barrels to 205.8 million from the previous week and were 827,000 barrels lower than a year ago.
Distillate fuel stocks fell by 1.179 million barrels on the week to 111.4 million and by 27.7 million barrels compared with a year ago.
The decline in distillate fuel stocks is particularly significant in that August is traditionally the time for replenishing supplies ahead of the onset of winter.
At the same time, expectations of an output increase by the Organisation of Petroleum Exporting Countries (OPEC) appeared to recede, with the focus of Venezuelan President Hugo Chavez's tour of fellow OPEC members ahead of a summit in Caracas next month more political than market moving.
On Friday, Chavez headed for Iran after incurring US wrath for becoming the first head of state since the Gulf War to visit Iraq, where he met Iraqi President Saddam Hussein.
RUBBER: flexible. Rubber prices ended the week unchanged after volatility triggered mainly by speculative activity on the Tokyo market.
In Kuala Lumpur, the RSS1 index was unchanged at 2.66 ringgit per kilo. The SMR20 index was also unchanged at 2.36 ringgit.
© Agence France Presse 2000
© 2000 Mena Report (www.menareport.com)
