http://finance.yahoo.com/news/Oil-above-35-amid-grim-apf-14409288.html
Analysts expect crude stocks will grow by 3.5 million barrels when the Energy Department releases inventory data for the week ended Feb. 13, according to a survey by Platts, the energy information arm of McGraw-Hill Cos. Inventories have risen more than 30 million barrels in the last six weeks.
"Inventories are the focus now," said Moltke-Leth. "If they rise again, it will put more downward pressure on crude."
Net crude oil stocks rose to a 20 month high for the week ended February 6th. It was the eighteenth weekly increase out of 20.
Light, sweet crude for March delivery jumped by $1.25 to $35.87 a barrel by midday in Europe on the New York Mercantile Exchange. The contract on Wednesday fell 31 cents to settle at $34.62.
The March contract expires on Friday, and traders switched their focus to the April contract, which rose 62 cents to $38.03.
"Bottom line, nothing has changed," said energy analyst Stephen Schork. "There is no way to construe the current fundamental picture anyway other than bearish."
The Organization of Petroleum Exporting Countries has struggled to bolster prices as output cuts fail to keep up with falling demand.
Venezuelan Oil Minister Rafael Ramirez said Wednesday the group may cut production again at a meeting on March 15, on top of the reduction of 4.2 million barrels a day announced since September. Ramirez said the 13-member cartel would like prices to rise to $70 a barrel.
"OPEC is looking very weak right now," said Moltke-Leth said. "There's a lot of chatter from them, but the market isn't really listening."
Moltke-Leth said prices will likely fall to about $32 a barrel, which would test the 10-year average price.
"$32 and a half is a significant line in the sand," he said. "It's a key support level, and I expect the market to test how strong it is."
Analysts expect crude stocks will grow by 3.5 million barrels when the Energy Department releases inventory data for the week ended Feb. 13, according to a survey by Platts, the energy information arm of McGraw-Hill Cos. Inventories have risen more than 30 million barrels in the last six weeks.
"Inventories are the focus now," said Moltke-Leth. "If they rise again, it will put more downward pressure on crude."
Net crude oil stocks rose to a 20 month high for the week ended February 6th. It was the eighteenth weekly increase out of 20.
Light, sweet crude for March delivery jumped by $1.25 to $35.87 a barrel by midday in Europe on the New York Mercantile Exchange. The contract on Wednesday fell 31 cents to settle at $34.62.
The March contract expires on Friday, and traders switched their focus to the April contract, which rose 62 cents to $38.03.
"Bottom line, nothing has changed," said energy analyst Stephen Schork. "There is no way to construe the current fundamental picture anyway other than bearish."
The Organization of Petroleum Exporting Countries has struggled to bolster prices as output cuts fail to keep up with falling demand.
Venezuelan Oil Minister Rafael Ramirez said Wednesday the group may cut production again at a meeting on March 15, on top of the reduction of 4.2 million barrels a day announced since September. Ramirez said the 13-member cartel would like prices to rise to $70 a barrel.
"OPEC is looking very weak right now," said Moltke-Leth said. "There's a lot of chatter from them, but the market isn't really listening."
Moltke-Leth said prices will likely fall to about $32 a barrel, which would test the 10-year average price.
"$32 and a half is a significant line in the sand," he said. "It's a key support level, and I expect the market to test how strong it is."
