February 1, 2010 / 10:11 PM / 10 years ago

CORRECTED-NYMEX-Crude ends up as equities rise, dollar slips

(In story date Jan. 25, in paragraph 8, corrects to show that U.S. heating oil demand was forecast to be 18 percent below normal, not 2 percent)

* Wall Street up as Bernanke approval seen likely

* Dollar down against most major currencies

* Heating oil demand seen below normal this week - NWS

* U.S. crude stocks seen up, distillates down

NEW YORK, Jan 25 (Reuters) - U.S. crude oil futures settled lower on Monday, ending a three-day losing streak, as Wall Street rebounded, the dollar fell against most major currencies and refined products bounced from recent losses.

U.S. stocks moved higher as signs that Federal Reserve Chairman Ben Bernanke would win a U.S. Senate vote for a second term helped lift shares beaten down last week. [.N]

The U.S. dollar, which rallied late last week as nervous investors cut holdings of higher-yield, higher-risk currencies and assets, turned lower against most major currencies. [USD/]

Gasoline futures rose back to above $2 a barrel, amid some refinery issues, and heating oil futures tacked on gains, on forecasts that weekly inventory data due out in the next two days would show that distillate inventories fell last week.

“The market’s advance was product-led,” said Tom Knight, trader at Truman Arnold in Texarkana, Texas.

Knight also said traders reacted to the closure of the Sabine-Neches Waterway in Port Arthur, Texas, a key shipping channel, after an oil spill in a ship collision on Saturday.

About half of the oil spilled had been contained as of Monday, the U.S. Coast Guard said. [ID:nN25127991]

Early pressure to the energy markets emerged from a National Weather Service forecast that U.S. heating oil demand this week was expected to be 18 percent below normal as temperatures moderate in the U.S. Northeast. [ID:nN25178954]

Last week, heating oil demand was 18 percent below normal versus a forecast of 23 percent below normal, NWS said.

A Reuters poll of analysts ahead of weekly inventory reports forecast that crude stocks rose 1.7 million barrels in the week to Jan. 22. Distillate stocks fell and gasoline supplies rose, the poll showed. [EIA/S]

PRICES

* On the New York Mercantile Exchange, March crude CLHO settled up 72 cents, or 0.97 percent, at $75.26 a barrel, trading from $74.06 to $75.42.

* In London, March Brent crude LCOH0 ended up 86 cents, or $1.18 percent, at $73.69 a barrel, trading from $72.46 to $73.80.

* NYMEX February RBOB RBG0 settled up 3.51 cents, or 1.79 percent, at $2.0008 a gallon, trading from $1.9520 to $2.0044.

* NYMEX February heating oil HOG0 ended up 2.42 cents, or 1.25 percent, at $1.9658, a gallon, trading from $1.9354 to $1.9692.

* The March/March heating oil crack spread <0#CL-HO=R> ended at $7.30, down from $7.48 on Friday. The March/March RBOB crack spread <0#RB-CL=R> was at $8.77, up from $8.34 on Friday.

* The spread between the current front month and the five-year forward crude contract CLc61 ended at $14.30, widening from $14.08 on Friday. The March 2015 contract settled on Monday at $89.56, up 94 cents, or 1.06 percent.

TECHNICALS

NYMEX crude 10-day/20-day moving average: $77.79/$79.43

Technical support/resistance:

NYMEX crude: $72.00/$76.60

NYMEX heating oil: $1.9136/$1.9696

NYMEX RBOB: $1.9372/$1.9942

For a full report on technicals, click on [ID:nLDE60O1KO]

MARKET NEWS

* Motiva had a small fire at its 220,000 barrels per day refinery in Norco, Louisiana, on Friday, according to officials of St. Charles Parish. [ID:nN25194789]

* U.S. Northeast temperatures were forecast to average above normal through Thursday. [ID:nDTN848]

* Nigeria’s national oil company to raised most of its crude official selling prices for February. [ID:nLDE60O18W]

* U.S. crude oil prices are expected to average $77.50 a barrel in 2010, a Reuters poll showed. [ID:nLDE60L27Q]

* Sales of previously owned U.S. homes suffered a record drop last month the lift resulting from a popular tax credit waned. [ID:nN25221870] (Reporting by Gene Ramos and Robert Gibbons)

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