NYMEX-Crude skids over 5 pct on big EIA stock build

Wed Jul 29, 2009 12:01pm EDT

 * EIA: crude stocks up, confirming API stock build     *
 * U.S. durable goods orders fall more than expected
 NEW YORK, July 29 (Reuters) - U.S. crude oil futures
extended losses to more than 5 percent on Wednesday after
government data showed a surprisingly large increase in crude
oil inventories last week, defying forecasts for a stock
drawdown.
 The data confirmed the industry group American Petroleum
Institute's report late on Tuesday that crude stocks rose
sharply. The API data had sent crude futures down more than $2
per barrel in early trading.
 Gasoline futures fell further, even though data from the
Energy Information Administration showed stocks fell, also
going against the forecast for a small stock build.
 Heating oil futures tanked, as the EIA reported a larger
than expected stock build.
 "Crude stock data looks bearish from any angle ... the
increase looks like the beginning of a trend reversal in crude
supply that could eventually erase more than half of the draw
of the past two and a half months," said Jim Ritterbusch,
president of Ritterbusch & Associates in Galena, Illinois.
 PRICES
 * On the New York Mercantile Exchange at 11:30 a.m. EDT
(1530 GMT), September crude CLU9 was down $3.86, or 5.74
percent, at $63.37 a barrel, trading from $63.04, the lowest
since July 17, to $67.01.
 * In London, September Brent crude LCOU9 was down $3.18,
or 4.55 percent, at $66.70 a barrel, trading from $66.40 to
$69.89.
 * NYMEX August RBOB RBQ9 skidded 7.61 cents, or 3.98
percent, to $1.8345 a gallon, trading from $1.8263 to $1.9135.
 * NYMEX August heating oil HOQ9 slumped 8.50 cents, or
4.8 percent to $1.6797 a gallon, trading from $1.6740 to
$1.7655.
 * August refined products contracts expire on Friday.
 * The September/September RBOB crack spread <0#RB-CL=R> was
at $12.41, after ending at $11.70 on Tuesday. The
September/September heating oil crack spread <0#CL-HO=R> was at
$8.30, after ending at $7.88 on Tuesday.
 * The spread between the current front month and the
five-year forward crude contract CLc61 was at $22.56, based
on the September 2014 contract Tuesday settlement at $85.93.
The spread ended Tuesday at $18.70.
 TECHNICALS
 NYMEX crude 10-day/20-day moving average: $65.60/$64.01
 Technical support/resistance:
 NYMEX crude: $64.90/$66.48
 NYMEX heating oil: $1.67/$1.80
 NYMEX RBOB: $1.8655/$1.9475
 For a full report on technicals, click on [ID:nLT168485]
 MARKET NEWS
 * Domestic crude stocks rose 5.1 million barrels to 347.8
million barrels last week, EIA data showed. The forecast in a
Reuters poll was for a 1.3 million barrel draw. [EIA/S]
 * Crude stocks at the NYMEX delivery hub in Cushing,
Oklahoma, rose 1.3 million barrels to 32.1 million barrels.
 * Gasoline stocks fell 2.3 million barrels to 213.1 million
barrels against the forecast for a 400,000-barrel build.
 * Distillate stocks, which include heating oil and diesel
fuel, rose 2.1 million barrels to 162.6 million barrels. The
forecast was for a 1.3 million build.
 * Refinery utilization was down 1.2 percentage points to
84.6 percent of capacity against the forecast for just an 0.1
percentage point dip.
 * The API said on Tuesday that domestic crude inventories
rose 4.1 million barrels last week. Gasoline stocks dropped
just 47,000 barrels and distillate stocks rose 116,000 barrels,
the API said. [API/S]
  * New orders for U.S. durable manufactured goods fell more
sharply than expected in June, notching their biggest decline
in five months, the government reported. [ID:nN28158575]
 * The dollar extended gains versus the euro after durable
goods report dented some risk appetite.[USD/]
 * U.S. equities fell on the durable goods data, which
fanned fears of a weak economic recovery and investors fret
about a slide in China's equities. [.N]
 (Reporting by Gene Ramos and Robert Gibbons; Editing by
Marguerita Choy)


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