SINGAPORE (Reuters) - Oil prices moved higher on Thursday, recovering some of the week's sharp losses ahead of U.S. data expected to show heavy falls in crude and product stocks due to disruption from Hurricane Katrina.
U.S. light crude rose 61 cents to $64.98 a barrel by 0728 GMT, after plunging $1.59 on Wednesday. The market has fallen 8 percent from a record $70.85 last week, after industrialised nations began to tap emergency reserves.
London Brent crude rose 59 cents to $63.48 a barrel.
Traders are looking to U.S. government data on oil stocks due later on Thursday for further direction on the damage to the U.S. oil industry, after the storm rampaged through the Gulf of Mexico last week.
Analysts surveyed by Reuters forecast a 6.4 million-barrel drop in weekly crude stocks, which would still leave them well above year-ago levels. The figures come a day later than usual because of a U.S. holiday.
Gasoline stocks were expected to fall by 6.2 million barrels and distillate fuels including diesel and heating oil by 2.6 million, as the hurricane forced the domestic industry to draw heavily on inventories.
"We will see the bullish stats, which will show the effects of the hurricane on U.S. crude and product stockpiles, so I believe prices will rise from here," said Naohiro Niimura, of Mizuho Corporate Bank.
I take it as a bounce, and then another decline to the $60 - $61
Tony
U.S. light crude rose 61 cents to $64.98 a barrel by 0728 GMT, after plunging $1.59 on Wednesday. The market has fallen 8 percent from a record $70.85 last week, after industrialised nations began to tap emergency reserves.
London Brent crude rose 59 cents to $63.48 a barrel.
Traders are looking to U.S. government data on oil stocks due later on Thursday for further direction on the damage to the U.S. oil industry, after the storm rampaged through the Gulf of Mexico last week.
Analysts surveyed by Reuters forecast a 6.4 million-barrel drop in weekly crude stocks, which would still leave them well above year-ago levels. The figures come a day later than usual because of a U.S. holiday.
Gasoline stocks were expected to fall by 6.2 million barrels and distillate fuels including diesel and heating oil by 2.6 million, as the hurricane forced the domestic industry to draw heavily on inventories.
"We will see the bullish stats, which will show the effects of the hurricane on U.S. crude and product stockpiles, so I believe prices will rise from here," said Naohiro Niimura, of Mizuho Corporate Bank.
I take it as a bounce, and then another decline to the $60 - $61
Tony
