Oil falls below $70 on death of al Qaeda's Zarqawi
(AP)
Updated: 2006-06-08 19:17
U.S. STOCKS RISE
Crude supplies in the United States rose 1.1 million barrels last week on
lower refinery output, the Energy Information Administration said, compared to
analyst forecasts of a decline.
This took stocks 4.2 percent above this time last year.
"The crude build -- due to unexpectedly high imports -- was a surprise," said
JPMorgan. "Gasoline demand eased as anticipated... this put demand on a
year-on-year basis up an anaemic 0.7 percent."
Gasoline stocks increased for the sixth week to gain 1 million barrels, while
distillate supplies rose by 1.8 million barrels, providing a more comfortable
supply cushion during peak summer demand. Gasoline futures led losses on
Thursday, down 1.6 percent at $2.09 a gallon.
Adding to pressure, former Federal Reserve Chairman Alan Greenspan said on
Wednesday that recent data showed high oil prices are starting to impact the
U.S. economy.
In Iran, the top oil official said on Wednesday the country could still use
the oil card if needed, taking the shine off positive signals earlier in the
week from Tehran on a package of incentives by world powers aimed at persuading
the world's fourth-largest oil exporter to stop enriching uranium.
"We need oil exports because currency that comes from them should be used to
build infrastructure. However, if we feel we have to, we will defend our
rights," Oil Minister Kazem Vaziri-Hamaneh told Iran's official news agency.
Iran's Supreme Leader Ayatollah Ali Khamenei rattled oil markets this week
after he said oil flows from the Gulf would be endangered if Washington made a
"wrong move."
Traders also remain on edge over supply disruptions in Nigeria, the world's
eight-largest exporter, after militants attacked a Shell-operated facility in
the Niger Delta, killing soldiers and kidnapping five South Korean contractors.
A militant group said the South Koreans will be released later on Thursday.
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