LONDON: Oil prices rose Friday because of supply concerns following a report that US crude oil stocks fell for the fifth straight week. Prices were also supported by forecasts that OPEC oil shipments were falling.
The supply concerns were partly offset by worries that a US economic slowdown could lead to a drop in demand.
Energy investors were shaken by the US Conference Board s report Thursday that its index of leading indicators dropped 0.4 percent in November to the lowest level in more than two years. Declines in the index tend to precede economic slowdowns or recessions.
Light, sweet crude for February delivery added 29 cents to $91.35 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe. The contract had fallen 18 cents Thursday.
In London, Brent crude added 23 cents to $91.11 a barrel in midday trading Friday on the ICE Futures exchange.
Dow Jones Newswires reported that Oil Movements, a British tanker tracking firm, expects crude shipments from Organization of Petroleum Exporting Countries to fall 230,000 barrels a day to 24.2 million barrels a day during the four weeks ending Jan. 5. The forecast reversed earlier Oil Movements predictions that oil shipments would rise.
Roy Mason, head of Oil Movements, said the dropoff in crude shipments was normal for this time of year.
The market fluctuated between gains and losses in Thursday s session as traders weighed forecasts for a warmer winter – which would lower demand for heating and crude oil – against the data suggesting that supplies are falling.
The National Oceanic and Atmospheric Administration said Thursday that the beginning of winter will be warmer than normal in the eastern two-thirds of the US, which includes the Northeast, the world s largest heating oil market, Dow Jones Newswires reported.
Meanwhile, the US Energy Department reported Wednesday that crude oil supplies fell last week by 7.6 million barrels. Much of that drop was due to a decline in imports of almost a million barrels a day because fog closed the Houston Ship Channel last week, analysts said.
Heating oil futures gained 0.59 cent to $2.5954 a gallon on the Nymex, while gasoline prices added 1.74 cents to $2.3450 a gallon. Natural gas prices dropped half a cent to $7.132 per 1,000 cubic feet.
