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Wednesday April 20, 07:58
Oil up after two-week slide
(by Julia Jenson)

Oil up after two-week slide

Oil has moved up above $52 a barrel barrier on Wednesday in expectation of a U.S. government report that will indicate the movements in U.S. gasoline inventories.

U.S. light crude reached $52.58 a barrel.

"The bottom line is that the market found support at $50. At that point it looked like the downside correction was finished. Now the focus is on the (U.S.) stocks data," said Keiichi Sano, assistant manager of Sumitomo Corp.’s commodities business unit in Tokyo.

Gas prices were up on minor disruptions at Kansas, Louisiana, and Texas refineries that could eat at the supply of gasoline ahead of the summer driving season.

The previous slide was caused by the OPEC promise to boost supply.

On Monday OPEC president Sheikh Ahmed Fahd Al Ahmed Al Sabah announced the cartel’s plan to increase production by an additional 500,000 barrels daily ahead of a boost in demand.

"In May, there will be an increase in production which will be made necessary by the demand in the third quarter," Sheik Ahmed said.

President George W. Bush expressed his intention to concentrate on energy costs in the meeting with Saudi Crown Prince Abdullah in Texas next week.

"I don’t think they’re pumping flat out," Bush said.

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Read the related news and articles:
27 May 2005 08:09 AM Oil above $51, gains trimmed by dollar rise
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24 May 2005 08:45 AM Oil around same level as refineries step up output
23 May 2005 10:40 AM Oil prices down on rising US inventories and French refineries resuming production
 


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