Petroleum Status Report 12-27-07

Crude down 3.3 million barrels
Gasoline up 0.7 million barrels
Distillates down 2.8 million barrels
Refinery Utilization 88.1%

Petroleum Status Report 12-19-07

Crude down 7.6 million barrels
Gasoline up 3 million barrels
Distillates down 2.1 million barrels
Refinery Utilization 87.8%

Petroleum Status Report 12-12-07

Crude down 700,00 barrels
Gasoline up 1.6 million barrels
Distillates down 800,000 barrels
Refinery Utilization 88.8%

Petroleum Status Report 11-28-07

Crude down 400,00 barrels
Gasoline up 1.4 million barrels
Distillates down 100,000 barrels
Refinery Utilization down 89.4%

Petroleum Status Report 11-21-07

Crude down 1.1 million barrels
Gasoline up 200,000 barrels
Distillates down 2.4 million barrels
Refinery Utilization down 0.7% to 87%

Petroleum Status Report 11-15-07

Crude up 2.8 million barrels
Gasoline up 700,000 barrels
Distillates down 2 million barrels
Refinery Utilization up 1.5% to 87.7%

Petroleum Status Report 11-07-07

Crude down 800,000 barrels
Gasoline down 800,000 barrels
Distillates up 100,000 barrels
Refinery Utilization 86.2%

Petroleum Status Report 10-31-07

Crude down 3.9 million barrels
Gasoline up 1.3 million barrels
Distillates up 800,000 barrels
Refinery Utilization 86.2%

Oil Continues To Hit Record Levels...........

Light, sweet crude for December delivery gained $1.40, to $91.86 a barrel in trading on the NYMEX.

Petroleum Status Report 10-24-07

Crude down 5.3 million barrels
Gasoline down 2 million barrels
Distillates down 1.8 million barrels
Refinery Utilization 87.1%

Petroleum Status Report 10-17-07

Crude up 1.8 million barrels
Gasoline up 2.8 million barrels
Distillates up 1 million barrels
Refinery Utilization 87.3% down 0.5%

In Tuesday's trading, U.S. crude settled up $1.48 at $87.61 a barrel, pulling back from the earlier record high of $88.20. London Brent crude oil rose $1.41 to $84.16 a barrel.

The White House is now expressing concern over rising oil prices.....

White House Press Secretary Dana Perino stated on Tuesday.....

"There is no doubt that energy prices are too high. They disproportionately hurt low-income families that have to spend so much of their money on energy",........"We watch it closely, we're very concerned."

November Crude Oil Hits Record High

November light, sweet crude jumped $2.44 to settle at a record $86.13 a barrel on the New York Mercantile Exchange

November crude hit an intra day high of $86.22, an all time record.

OPEC stated on Monday that production among non-OPEC nations is declining, despite increasing demand.

OPEC expects 4th quarter production by non-OPEC countries to decline by 110,000 barrels.

Petroleum Status Report 10-11-07

Crude down 1.7 million barrels
Gasoline up 1.7 million barrels
Distillates down 600,000 barrels
Refinery Utilization 87.8%

November crude pulled back on Monday dropping $2.20, or 2.7%, to close at $79.02 a barrel on the NYMEX.

November Crude Oil Technical Levels

Resistance: $81.75 and $83.76

Support: $80.03 and $78.44

Petroleum Status Report 10-03-07

Crude up 1.2 million barrels
Gasoline down 100,000 barrels
Distillates down 1.2 million barrels
Refinery Utilization up .6% to 87.5%

The Oil Service Holders Index hit a new high last week at 196.

Petroleum Status Report 9-26-07

Crude up 1.8 million barrels
Gasoline up 600,000 barrels
Distillates up 1.6 million barrels
Refinery Utilization 86.9%

Oil prices are pulling back in Tuesday's trading, with November contracts for light sweet crude down $1.45 to $79.50 a barrel on the New York Mercantile Exchange.

The next level of support is at $77.30

The AMEX Oil Service Holders Index has broken through resistance at 190 and it now at record levels.

Petroleum Status Report 9-19-07

Crude down 3.8 million barrels
Gasoline up 400,000 barrels
Distillates up 1.5 million barrels
Refinery Utilization 89.6%

U.S. Rig Count Drops

The rig count of U.S. oil and natural gas operations fell to 1,787 last week, down 27 from the previous period.

1,483 rigs are targeting natural gas. 298 rigs are exploring for oil and 6 are listed as "miscellaneous".

During this week in 2006, the rig count stood at 1,737.

State by state numbers:

Alaska -1
Texas -26
Colorado +10
Oklahoma +4
New Mexico -4
Wyoming -3
Louisiana = unchanged

Rig counts have been tracked by Baker Hughes since 1944. The number peaked at 4,530 in 1981. The record low was set in 1999 at 488.

Oil continues to climb in a breakout pattern.

Key support levels to watch this week for October crude are $78.15 and and $77.37

A larger than expected decline in crude oil inventories is propelling oil prices to record highs.

U.S. oil inventories declined 7.01 million barrels last week.

Oil hit a record of $79.29 in New York trading on Wednesday.

Crude Oil On Verge Of Double Top Breakout

Crude appears poised to stage a double top breakout.

$78.77 is the key number for October crude contracts. A close above this level would signal a very bullish breakout.

Petroleum Status Report 9-6-07

Crude down 3.9 million barrels
Gasoline down1.5 million barrels
Distillates up 2.3 million barrels
Refinery Utilization 92.1%

October Crude Oil Technical Levels

Resistance: $74.44 and $74.52

Support: $73.40 and $72.27

Petroleum Status Report 8-29-07

Crude down 3.5 million barrels
Gasoline down 3.6 million barrels
Distillates up 900,000 barrels
Refinery Utilization down 1.3%

October Crude Technical Levels......Week of 8-27-07

October Crude Technical Levels

Support: $68.63 and $68.06

Resistance: $71.35 and $72.41

September Crude Oil Breaks Support

Crude Oil for September delivery closed at $69.47, breaking support at $70.10.

The next level of support is $67.56

UNG (United States Natural Gas Fund) fell over 12% on Monday to $38.70, the lowest close since July 24.

September Crude Oil Technical Levels:

Resistance: $72.67 and $74

Support: $70.10 and $69.44

Petroleum Status Report 8-15-07

Crude down 5.2 million barrels
Gasoline down 1.1 million barrels
Distillates up 200,000 barrels
Refinery Utilization 91.8%

West Texas Intermediate Crude closed up 21 cents to $71.53.

Key Technical Levels For September Crude Contracts

Support: 70.10 and 69.44

Resistance: 72.67 and 73.19

Crude Oil Technical Levels

Support: 70.10 and 69.44

Resistance: 72.67 and 73.20

During a televised speech on Saturday, Venezuelan President Hugo Chavez stated that world oil prices are on a path for $100 per barrel.

"I've always said that oil prices are headed straight to $100 per barrel," he said during a televised speech. "We should prepare ourselves for those prices of one hundred dollars."

Chavez said the world is in the midst of a "global crisis" and that oil prices will continue to rise as demand increases and available reserves continue to dwindle.

Chavez repeated threats to cut off oil sales to the United States. The United States historically receives 12 to 15 percent of it's imported oil from Venezuela.

"No one should think that we're going to stop sending oil to the United States, no -- unless they attack us again," Chavez said during a speech to leaders of Caribbean nations meeting in Caracas for an energy summit.

"If they attack us again like they did in April of 2002 ... there will be no oil."

September Crude prices traded slightly lower on Thursday.

On a technical basis Stochastics and the RSI are entering oversold territory. The next level of technical support is 70.50.

Petroleum Status Report 8-08-07

Crude down 4.1 million barrels
Gasoline down 1.7 million barrels
Distillates up 1 million barrels
Refinery Utilization 91.3% down 2.3%

Key Technical Levels For Crude Oil

Resistance Levels: 78.77 and 80.64 (high of August 2006)

Support Levels: 75.55 and 75.10 (20 day moving average)

US Crude supplies dropped 6.5 million barrels in the week ending July 27. This represents the biggest decline in 2007.

Refinery utilization increased to 93.6, the highest level in over a year.

Key levels for September crude contracts........

Resistance levels....77.24 and 77.45

Support levels.......75.15 and 74.70

Petroleum Status Report 7-25-07

Crude down 1.1 million barrels
Gasoline up 800,000 barrels
Distillates up 1.5 million barrels
Refinery Utilization 91.7% up 0.7%

Oil prices pulled back almost $2 on Tuesday amid speculation that OPEC might increase output in the 4th quarter.

Analysts and traders are expecting that Wednesday's petroleum inventory data will show a build in US gasoline stocks.

Analysts polled by Thomson Financial News predict gasoline inventories to build by 500,000 barrels and crude stocks to post a decline of 1 million barrels.

Energy Investment Report will have the petroleum inventory data the instant it is released at 10:30 am Eastern time on Wednesday.


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Transocean announced on Monday that it is merging with GlobalSantaFe in a deal that will value the combined company at over $53 Billion.

The merger creates a drilling powerhouse that will be able to produce crude and natural gas from both shallow wells and ultra deep offshore ventures.

Shareholders of both companies will receive shares in the new company which will use the Transocean name and stock symbol (RIG-NYSE).

The deal is expected to close by the end of 2007.


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Crude oil prices continue to break out with $77.50 being the next level of technical resistance for West Texas Intermediate Crude.

Barclays Capital has raised its crude oil price forecasts for 2008 by 11 percent due to rising demand and slow production outside of the OPEC region.

Barclays forecasts that Brent Crude will average $73.60 in 2008. This represents an increase of $7.40 from previous forecasts.

Barclays predicts West Texas Intermediate Crude prices will average $73.90, an increase of $6.60 over previous estimates.

Petroleum Status Report 7-18-07

Crude down 500,000 barrels
Gasoline down 2.3 million barrels
Distillates down 200,000 barrels
Refinery Utilization 91% up 0.8%

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Oil Tops $75.........

Crude prices topped $75 on Tuesday before pulling back to close at $74.11

Crude Prices Continue To Surge..........

Crude oil prices hit an 11 month high on Friday and appear poised to test overhead resistance at the $75 level in the coming sessions.

Petroleum Status Report 7-11-07

Crude down 1.4 million barrels
Gasoline up 1.2 million barrels
Distillates up 800,000 barrels
Refinery Utilization 90.2%

Oil prices pulled back slightly on Tuesday to close at $72.19 (West Texas Intermediate Crude).

Oil remains in a very bullish breakout since topping the resistance level of $67 in mid June.

The WTIC 50 day moving average currently stands at $66.60.

Crude oil prices continue to breakout, topping the $72 mark for the first time since September 2006.

Petroleum Status Report 7-05-07

Crude up 3.1 million barrels
Gasoline up 1.8 barrels
Distillates up 1.2 Million barrels
Refinery Utilization 90%

Due to the July 4 holiday the U.S. Energy Department's Energy Information Administration Petroleum Status Report will be delayed until Thursday July 5 at 10:30 am.

Here are predictions for tomorrows numbers from select analysts surveyed by Dow Jones Newswires:

Gasoline Inventories: Increase of 700,000 barrels

Refinery Utilization: Increase of 1.1 percentage points to 90.5 percent

Crude Inventories: Decline of 500,000 barrels.

Distillate Inventories: Decline of 200,000 barrels.

Oil prices continued to rally on Monday with West Texas Intermediate finishing up 41 cents to close at $71.09 a barrel.

August Brent crude futures rose $1.22 to settle at $72.63 a barrel on the ICE Futures exchange in London.

Oil Breaks Through $70.........

West Texas Intermediate Crude for July delivery closed at $70.68 per barrel.

The represents the highest close for WTI since August 31, 2006.

API Inventory Numbers......Week Ending 6-22-07

American Petroleum Institute

• Crude -- ----- increase 2.4 million barrels
• Distillates-----decline 1.7 million barrels
• Gasoline ------decline 5.3 million barrels
  

Petroleum Status Report 6-27-07

EIA.....U.S. Department of Energy

Crude up 1.6 million barrels
Gasoline down 700,000 barrels
Distillates down 2.3 Million barrels
Refinery Utilization 89.4%

The Oil Service sector continued it's bullish run last week with the OSX (Oil Service Index) once again hitting record highs.

Petroleum Status Report 6-20-07

Crude up 6.9 Million barrels
Gasoline up 1.8 Million barrels
Distillates up 100,000 barrels
Refinery Utilization 87.6%

Oil Service Index Hits Record High

The PHLX OIL SERVICE SECTOR INDEX hit an all time record high of 266.50 on Friday.

Petroleum Status Report 6-13-07

Crude up 100,000 barrels
Gasoline Inventories Unchanged
Distillates up 300,000 barrels
Refinery Utilization 89.2%

In a speech to the Asia Oil and Gas Conference, ConocoPhillips Chairman and CEO James Mulva
stated that 'vast new areas' will have to be opened up in order to meet a projected 40 pct growth in demand for oil over the next 20 years.

'By 2030 we would have to bring on line 105 million barrels a day of new production. To meet this challenge, vast new areas will need to be opened and explored.'

'New technology will be needed to access resources that are in more remote locations, or trapped in unconventional reservoirs.'

According to the Paris-based International Energy Agency, the world will require 120 million barrels of oil per day by 2030. Currently consumption is 85 million barrels a day.

The IEA has projected that the demand for natural gas will grow at an even faster pace than oil, rising 66% by 2030.

'Regional gas markets are growing and price realisations are rising. These factors now make gas a prime exploration target, instead of merely an adjunct to the search for oil,' Mulva said.

Petroleum Status Report 6-06-07

Crude up 100,000 barrels
Gasoline up 3.5 Million barrels
Distillates up 1.9 Million barrels
Refinery Utilization 89.6%

Summary of Weekly Petroleum Data for the Week Ending June 1, 2007

U.S. crude oil refinery inputs averaged nearly 15.4 million barrels per day
during the week ending June 1, down 235,000 barrels per day from the previous
week's average. Refineries operated at 89.6 percent of their operable capacity
last week. Gasoline production dropped slightly compared to the previous week,
averaging over 9.2 million barrels per day, while distillate fuel production
also declined, averaging nearly 4.3 million barrels per day.

U.S. crude oil imports averaged over 10.2 million barrels per day last week, up
222,000 barrels per day from the previous week. Over the last four weeks, crude
oil imports have averaged nearly 10.4 million barrels per day, or 147,000
barrels per day more than averaged over the same four-week period last year.
Total motor gasoline imports (including both finished gasoline and gasoline
blending components) last week averaged 1.5 million barrels per day. Distillate
fuel imports averaged 229,000 barrels per day last week.

U.S. commercial crude oil inventories (excluding those in the Strategic
Petroleum Reserve) inched higher by 0.1 million barrels compared to the previous
week. At 342.3 million barrels, U.S. crude oil inventories are just above the
upper end of the average range for this time of year. Total motor gasoline
inventories climbed by 3.5 million barrels last week, but remain well below the
lower end of the average range. Distillate fuel inventories increased by 1.9
million barrels per day, and are just below the upper end of the average range
for this time of year. While heating oil (high-sulfur) inventories were
relatively unchanged, regular diesel fuel (low-sulfur) and ultra-low sulfur
diesel fuel inventories increased. Propane/propylene inventories rose by 1.6
million barrels last week. Total commercial petroleum inventories increased by
3.7 million barrels last week, and are in the middle of the average range for
this time of year.

Total products supplied over the last four-week period has averaged nearly 21.0
million barrels per day, or 2.4 percent above the same period last year. Over
the last four weeks, motor gasoline demand has averaged nearly 9.5 million
barrels per day, or 1.5 percent above the same period last year. Distillate
fuel demand has averaged nearly 4.2 million barrels per day over the last four
weeks, up 2.6 percent compared to the same period last year. Jet fuel demand is
up 0.9 percent over the last four weeks compared to the same four-week period
last year.

Petroleum Status Report 5-31-07

Crude draw 2 Million barrels
Gasoline up 1.3 Million barrels
Distillates up 100,000 barrels
Refinery Utilization 91.7%

Crude up 2 Million barrels
Gasoline up 1.5 Million barrels
Distillates up 500,000 Million barrels
Refinery Utilization 91.1%

This 6 month chart of $WTIC (Light Crude Continuous Contract) shows a quadruple top forming at the $67 level. If prices can break through this overhead resistance they should be poised to move toward the $70 level.

Crude oil broke above $64 a barrel in New York trading amid renewed concern that U.S. gasoline supplies will not be able to meet the demand of the summer driving season.

Wednesday's EIA report showed gasoline inventories last week were 7.5 percent below their five-year average for the period.

Crude oil for June delivery rose $1.50, or 2.4 percent, to $64.05 a barrel at 1:10 p.m. on the New York Mercantile Exchange. Futures touched $64.20, the highest since May 2. Prices are 6.5 percent lower than a year ago.

Petroleum Status Report 5-16-07

Crude up 1 Million barrels
Gasoline up 1.7 Million barrels
Distillates up 1 Million barrels
Refinery Utilization up .5% to 89.5%

Predictions For Wednesday's EIA [Energy Information Administration] Report

Michael Fitzpatrick, an analyst at Man Financial, expects the data to show fourth-weekly climb in crude supplies, up 1.8 million barrels for the week ended May 11. Wachovia Corp. expects crude supplies to be unchanged, but a Platts' survey shows that analysts are generally looking for a climb of 200,000 barrels.

Fitzpatrick expects to see a second-weekly climb in motor gasoline supplies of 500,000 barrels, and an increase of 1.1 million barrels in distillate inventories. Wachovia predicts a rise of 1.25 million barrels in gasoline inventories and a rise of 250,000 barrels for distillates. And the Platts' survey calls for a 900,000-barrel increase in gasoline and a 1.4 million-barrel rise in distillates.

Petroleum Demand May Outstrip Supply

The International Energy Agency (IEA) says the Organization of Petroleum Exporting Countries (OPEC) needs to increase output in order to meet an expected jump in oil product demand of 1.6 million barrels a day in June.

"Steady output at current levels would lead (to OPEC) undershooting our calculated range for the call on its crude, and thus tightening stocks further," the IEA said.

Gasoline supplies are at the lowest levels since October 2005 following Hurricanes Katrina and Rita

Petroleum Status Report 5-09-07

Crude up 5.6 Million barrels
Gasoline up 400,000 Million barrels
Distillates up 1.7 Million barrels

Petroleum Status Report 5-02-07

Crude up 1.1 Million barrels
Gasoline down 1 Million barrels
Distillates down 200,00 barrels

Wednesday's Petroleum Inventory Report by the U.S. Department of Energy's Energy Information Administration showed that crude oil inventories rose by 2.1 million barrels in the week ending Friday to 334.5 million barrels. Traders, on average, had expected crude oil inventories to fall by 1.2 million barrels, according to a Dow Jones Newswires survey of analyst estimates.

Gasoline inventories fell by 2.8 million barrels. Analysts had expected a 200,000-barrel increase in gasoline inventories. Distillate stockpiles, which include heating oil and diesel fuel, remained flat as heating oil inventories fell while diesel stockpiles rose.

Light, sweet crude for June delivery rose $1.26 cents to settle at $65.84 on the New York Mercantile Exchange. The contract fell $1.31 a barrel on Tuesday.

Brent crude for June delivery gained $1.41 to settle at $68.57 a barrel on the ICE Futures exchange in London.

Gasoline futures gained 7.37 cents to settle at $2.2826 a gallon.

Baker Hughes reported EPS of $1.17 versus estimates of $1.10, while revenue rose 20% in the quarter to $2.47 billion. North American revenue was up 14% at Baker Hughes (to $1.047b); the company is forecasting about 7% growth in that market for the rest of the year and 19% to 20% for international markets.

Petroleum Inventory Report

Gasoline Inventories down 2.7 Million Barrels

Crude Inventories down 1Million Barrels

Distillates down 0.8 Million Barrels

Double Top Breakout For Oil Service Index

The PHLX OIL SERVICE SECTOR INDEX (OSX) has broken through a double top at 218 and is now poised to test the highs of May/June 2006.

Petroleum Inventory Report

Crude Inventories up 0.7 Million Barrels

Distillates Up 0.1 Million Barrels

Gasoline Inventories down 5.5 Million Barrels

The PHLX OIL SERVICE SECTOR INDEX (OSX) currently is at a double top at 218. If the index can break through this level it may be poised to test the highs of summer 2006.

Working gas in storage was 1,511 Bcf as of Friday, March 23, 2007, according to EIA estimates. This represents a net decline of 22 Bcf from the previous week. Stocks were 209 Bcf less than last year at this time and 267 Bcf above the 5-year average of 1,244 Bcf. In the East Region, stocks were 76 Bcf above the 5-year average following net withdrawals of 41 Bcf. Stocks in the Producing Region were 149 Bcf above the 5-year average of 448 Bcf after a net injection of 13 Bcf. Stocks in the West Region were 42 Bcf above the 5-year average after a net addition of 6 Bcf. At 1,511 Bcf, total working gas is within the 5-year historical range.

Summary of Weekly Petroleum Data for the Week Ending March 23, 2007

U.S. crude oil refinery inputs averaged nearly 15.0 million barrels per day
during the week ending March 23, up 167,000 barrels per day from the previous
week's average.  Refineries operated at 87.0 percent of their operable capacity
last week.  Gasoline production increased slightly compared to the previous
week, averaging over 8.9 million barrels per day, while distillate fuel
production decreased, averaging over 4.0 million barrels per day.

U.S. crude oil imports averaged over 9.6 million barrels per day last week, down
786,000 barrels per day from the previous week. Over the last four weeks, crude
oil imports have averaged nearly 9.7 million barrels per day, or 159,000 barrels
per day less than averaged over the same four-week period last year.  Total
motor gasoline imports (including both finished gasoline and gasoline blending
components) last week averaged over 1.1 million barrels per day. Distillate fuel
imports averaged 349,000 barrels per day last week.

U.S. commercial crude oil inventories (excluding those in the Strategic
Petroleum Reserve) fell by 0.9 million barrels compared to the previous week. 
At 328.4 million barrels, U.S. crude oil inventories are above the upper end of
the average range for this time of year.  Total motor gasoline inventories
declined by 0.3 million barrels last week, and are in the upper half of the
average range.  Distillate fuel inventories decreased by 0.7 million barrels,
and are near the upper end of the average range for this time of year.  Most of
the decline was in heating oil inventories (high- sulfur), while diesel fuel
inventories (the sum of ultra-low and low- sulfur) inventories were relatively
unchanged. Propane/propylene inventories fell by 0.7 million barrels last week.
Total commercial petroleum inventories increased by 0.4 million barrels last
week, and are in the upper half of the average range for this time of year.

Total products supplied over the last four-week period has averaged 21.1 million
barrels per day, or 2.4 percent above the same period last year.  Over the last
four weeks, motor gasoline demand has averaged 9.2 million barrels per day, or
1.6 percent above the same period last year.  Distillate fuel demand has
averaged above 4.4 million barrels per day over the last four weeks, unchanged
compared to the same period last year. Jet fuel demand is up 3.8 percent over
the last four weeks compared to the same four-week period last year.

The Oil Services Index ($OSX) is on the verge of a major breakout. This one year chart shows the index poised for a double top breakout which may propel it toward the highs set last May.

Summary of Weekly Petroleum Data for the Week Ending March 16, 2007

U.S. crude oil refinery inputs averaged nearly 14.8 million barrels per day
during the week ending March 16, up 197,000 barrels per day from the previous
week's average. Refineries operated at 86.3 percent of their operable capacity
last week. Gasoline production increased slightly compared to the previous
week, averaging 8.8 million barrels per day, while distillate fuel production
increased more substantially, averaging over 4.1 million barrels per day.

U.S. crude oil imports averaged over 10.4 million barrels per day last week, up
616,000 barrels per day from the previous week. Over the last four weeks, crude
oil imports have averaged nearly 9.7 million barrels per day, or 200,000 barrels
per day less than averaged over the same four-week period last year. Total
motor gasoline imports (including both finished gasoline and gasoline blending
components) last week averaged 803,000 barrels per day. Distillate fuel imports
averaged 221,000 barrels per day last week.

U.S. commercial crude oil inventories (excluding those in the Strategic
Petroleum Reserve) rose by 4.0 million barrels compared to the previous week.
At 329.3 million barrels, U.S. crude oil inventories are above the upper end of
the average range for this time of year. Total motor gasoline inventories
dropped by 3.4 million barrels last week, and are in the upper half of the
average range. Distillate fuel inventories declined by 1.7 million barrels, and
are near the upper end of the average range for this time of year. Most of the
decline was in diesel fuel inventories (the sum of ultra-low-sulfur and
low-sulfur), while high-sulfur distillate fuel (heating oil) inventories also
declined, but by a much smaller amount. Propane/propylene inventories fell by
1.8 million barrels last week. Total commercial petroleum inventories decreased
by 2.9 million barrels last week, and are in the upper half of the average range
for this time of year.

Total products supplied over the last four-week period has averaged over 21.3
million barrels per day, or 4.0 percent above the same period last year. Over
the last four weeks, motor gasoline demand has averaged nearly 9.2 million
barrels per day, or 2.1 percent above the same period last year. Distillate
fuel demand has averaged over 4.5 million barrels per day over the last four
weeks, or 3.0 percent above the same period last year. Jet fuel demand is up 4.5
percent over the last four weeks compared to the same four-week period last
year.

Working gas in storage was 1,516 Bcf as of Friday, March 9, 2007, according to EIA estimates. This represents a net decline of 115 Bcf from the previous week. Stocks were 324 Bcf less than last year at this time and 158 Bcf above the 5-year average of 1,358 Bcf. In the East Region, stocks were 35 Bcf above the 5-year average following net withdrawals of 92 Bcf. Stocks in the Producing Region were 103 Bcf above the 5-year average of 461 Bcf after a net withdrawal of 22 Bcf. Stocks in the West Region were 19 Bcf above the 5-year average after a net drawdown of 1 Bcf. At 1,516 Bcf, total working gas is within the 5-year historical range.

Oil prices inched up Wednesday after a government report showed that crude stocks rose less than expected last week while product inventories fell more than analysts had forecast.

Light, sweet crude for April delivery rose 2 cents to $57.95 a barrel in late morning trading on the New York Mercantile Exchange.

The Brent crude contract for April added 5 cents to $60.95 a barrel on the ICE Futures exchange in London.

The Energy Department reported Wednesday that crude inventories rose last week to 325.3 million barrels, up by 1.1 million barrels, higher than analyst expectations. Analysts polled by Dow Jones Newswires estimated an average gain of 1.4 million barrels.

Meanwhile, gasoline inventories fell by 2.5 million barrels last week, above expectations of a 2.1 million barrel decline. Inventories for distillate stocks – which include heating oil and diesel fuel – fell by 2.8 million barrels, more than estimates of a 1.9 million barrel drop.

Crude, gasoline and distillate inventories are at the upper end of average for this time of year.

The drawdown in gasoline stocks failed to inspire any buying, with gasoline futures edging down less than a penny to $1.9226 a gallon. Heating oil futures gained a fraction of a cent to $1.6935 a gallon.

“Overall, all the numbers are very bullish. There is nothing bearish at all about this report,” said Phil Flynn, an energy analyst at Alaron Trading Corp. in Chicago. “But I think traders are still concerned that the stock market is soft.”

The April crude contract dipped by almost a dollar on Tuesday to settle at $57.93 a barrel following a decline in Wall Street which stirred worries about the U.S. economy and demand for energy.

The Organization of Petroleum Exporting Countries is set to meet on Thursday amid expectations that oil ministers would opt to keep output steady.

In other Nymex trading, natural gas prices rose 8.6 cents to $6.978 per 1,000 cubic feet.

Working gas in storage was 1,631 Bcf as of Friday, March 2, 2007, according to EIA estimates. This represents a net decline of 102 Bcf from the previous week. Stocks were 268 Bcf less than last year at this time and 194 Bcf above the 5-year average of 1,437 Bcf. In the East Region, stocks were 70 Bcf above the 5-year average following net withdrawals of 78 Bcf. Stocks in the Producing Region were 113 Bcf above the 5-year average of 473 Bcf after a net withdrawal of 6 Bcf. Stocks in the West Region were 12 Bcf above the 5-year average after a net drawdown of 18 Bcf. At 1,631 Bcf, total working gas is within the 5-year historical range.

Oil prices jumped by more than $1 per barrel Wednesday, after the U.S. government reported an unexpected drop in crude oil inventories last week.

Light, sweet crude for April delivery surged $1.12 to $61.81 a barrel in morning trading on the New York Mercantile Exchange.

Brent crude for April delivery spiked $1.01 to $62.40 a barrel on London's ICE Futures Exchange.

The U.S. Energy Information Administration said crude oil stockpiles fell by 4.8 million barrels to 324.2 million barrels last week. Analysts, on average, had been expecting an increase in crude inventories of 2 million barrels, according to a Dow Jones Newswires survey.

Total gasoline inventories fell by 3.8 million barrels to 216.4 million barrels, a sharper decline than the 1.4 million barrel drop that analysts had expected.

Distillate fuel inventories, which include diesel and heating oil, fell by 1.3 million barrels to 123.2 million, compared with the 2.3 million barrel slide analysts had expected.

Heating oil futures rose 2.07 cents to $1.768 a gallon and natural gas gained less than a penny to $7.475 per 1,000 cubic feet. Gasoline futures rose 2.92 cents to $1.8825.

Also buoying crude prices was a U.S. Energy Information Administration's short-term energy outlook released Tuesday. The EIA predicted that oil demand will be 2.7 percent higher in the first quarter of 2007 than the same period a year ago, and that natural gas demand will surge 11 percent this year from 2006.

Working gas in storage was 1,733 Bcf as of Friday, February 23, 2007, according to EIA estimates. This represents a net decline of 132 Bcf from the previous week. Stocks were 263 Bcf less than last year at this time and 179 Bcf above the 5-year average of 1,554 Bcf. In the East Region, stocks were 71 Bcf above the 5-year average following net withdrawals of 98 Bcf. Stocks in the Producing Region were 91 Bcf above the 5-year average of 501 Bcf after a net withdrawal of 24 Bcf. Stocks in the West Region were 16 Bcf above the 5-year average after a net drawdown of 10 Bcf. At 1,733 Bcf, total working gas is within the 5-year historical range.

Light, sweet crude for April delivery gained 13 cents to $61.27 a barrel on the New York Mercantile Exchange in afternoon trading, after earlier rising as high as $61.75. Friday's closing price of $61.14 was the highest since Dec. 22.

April Brent crude on London's ICE Futures exchange rose 24 cents to $61.12 a barrel on Monday.

Nymex heating oil prices rose less than 1 cent to $1.7539 a gallon while natural gas futures fell 9.3 cents to $7.662 per 1,000 cubic feet.

U.S. inventory figures released last Thursday showed a larger-than-expected decline in distillates, which include heating oil and diesel, as well as a drop in gasoline inventories.

Several analysts are forecasting a decline in stockpiles of heating oil when the government issues its weekly inventory report on Wednesday, said Jason Schenker, an economist with Wachovia Corp. However, Schenker said he expects the drop to be much smaller compared with the prior week.

Working gas in storage was 1,865 Bcf as of Friday, February 16, 2007, according to EIA estimates. This represents a net decline of 223 Bcf from the previous week. Stocks were 296 Bcf less than last year at this time and 182 Bcf above the 5-year average of 1,683 Bcf. In the East Region, stocks were 87 Bcf above the 5-year average following net withdrawals of 151 Bcf. Stocks in the Producing Region were 84 Bcf above the 5-year average of 532 Bcf after a net withdrawal of 60 Bcf. Stocks in the West Region were 12 Bcf above the 5-year average after a net drawdown of 12 Bcf. At 1,865 Bcf, total working gas is within the 5-year historical range.

- Oil fell on expectations temperatures in the US Northeast are set to moderate, decreasing heating oil demand.

At 3.27 pm, front-month Brent North Sea crude contracts for April delivery were down 88 cents to 57.26 usd per barrel. The contracts dipped 81 cents to close at 58.14 usd yesterday.

Meanwhile, front-month New York light sweet crude contracts for March delivery, which expire later today, were trading at 57.71 usd a barrel, down 1.66 usd from Friday's close. NYMEX did not issue a settlement price yesterday as US markets were closed for the Presidents Day holiday.

'Prices have pulled back significantly, particularly heating oil, as weather remains the primary focus,' said Fimat analyst Mike Fitzpatrick.

Working gas in storage was 2,088 Bcf as of Friday, February 9, 2007, according to EIA estimates. This represents a net decline of 259 Bcf from the previous week. Stocks were 193 Bcf less than last year at this time and 268 Bcf above the 5-year average of 1,820 Bcf. In the East Region, stocks were 151 Bcf above the 5-year average following net withdrawals of 179 Bcf. Stocks in the Producing Region were 109 Bcf above the 5-year average of 567 Bcf after a net withdrawal of 68 Bcf. Stocks in the West Region were 8 Bcf above the 5-year average after a net drawdown of 12 Bcf. At 2,088 Bcf, total working gas is within the 5-year historical range.

Oil prices fell back from the $60-a-barrel mark Monday as the market anticipated a supply surplus in the second quarter and following a suggestion that OPEC is unlikely to further cut production.

On Friday, prices climbed briefly above the psychological $60 barrier on unrelenting cold U.S. weather.


But light, sweet crude for March delivery was down 84 cents to $59.05 a barrel in electronic trading on the New York Mercantile Exchange by afternoon in Europe. Brent crude for March dropped $1.13 to $57.88 a barrel at London's ICE Futures exchange.

Working gas in storage was 2,347 Bcf as of Friday, February 2, 2007, according to EIA estimates. This represents a net decline of 224 Bcf from the previous week. Stocks were 26 Bcf less than last year at this time and 378 Bcf above the 5-year average of 1,969 Bcf. In the East Region, stocks were 238 Bcf above the 5-year average following net withdrawals of 139 Bcf. Stocks in the Producing Region were 137 Bcf above the 5-year average of 607 Bcf after a net withdrawal of 63 Bcf. Stocks in the West Region were 3 Bcf above the 5-year average after a net drawdown of 22 Bcf. At 2,347 Bcf, total working gas is within the 5-year historical range.

Oil prices edged up Wednesday after a government report showed an unexpected decline in weekly U.S. crude oil inventories, suggesting that the recent frigid weather is eating into supplies.

The Department of Energy said Wednesday that crude oil inventories fell by 400,000 barrels last week to 324.5 million barrels. Analysts expected an average build of 950,000 barrels, according to a Dow Jones Newswires survey of energy analysts.

"This report is solid confirmation of solid heating demand," said Tim Evans, energy analyst at Citigroup Global Markets.

Crude supplies remain at the upper end of the average range for this time of year, however.

Light, sweet crude for March delivery inched up 7 cents to $58.95 a barrel in late morning trading on the New York Mercantile Exchange.

Brent crude was unchanged at $58.42 Wednesday on London's ICE commodities exchange.

The government also reported that distillate fuel inventories — which includes heating oil and diesel fuel — fell by 3.7 million barrels, more than analysts' expectations of a 2.9-million-barrel drawdown.

Meanwhile, motor gasoline inventories rose by 2.6 million barrels, surprising analysts who expected an average gain of 1.35 million barrels. Both distillate fuels and gasoline stocks remain at the upper end of average for this time of year.

Heating oil futures rose by half a penny to $1.6960 a gallon, while gasoline futures rose by less than a cent to $1.5739 a gallon.

Recent bitter winter weather in the U.S. Northeast — which makes up 80 percent of the nation's heating oil demand — has helped to buoy crude oil and heating oil prices this week.

The National Oceanic and Atmospheric Administration continues to forecast below-normal temperatures across the U.S. Northeast until at least Feb. 19. The low temperatures have helped lift prices 19 percent since Jan. 18, when crude touched a 20-month low of $49.90.

Traders have yet to send prices above $60 a barrel, a level not seen since the first trading day of the year. Continued cold weather may not be enough to boost prices over that "psychological barrier," especially this late in the winter season, according to Ray Mazzeo, vice president at Energy Merchant LLC.

Instead, Mazzeo expects increasing tensions between Iran and the U.S. to be the main driver in boosting prices.

"I think the anticipation of the expiring of the Iran sanctions has brought us to this level so far," Mazzeo said. "If we get a hard line from Iran refusing to stop uranium enrichment, then we could see $60 a barrel."

In other Nymex trading, natural gas prices advanced more than 14 cents to $7.758 per 1,000 cubic feet.

Oil prices spiked higher Tuesday, bolstered by expectations that heating fuel demand would jump as arctic weather blasted through parts of the United States, the world's top energy consumer.

The likelihood of prolonged cold temperatures were expected to be reflected in heating oil stock draws when the U.S. inventory report is published Wednesday. Vienna's PVM Oil Associates predicted a 3.3 million-barrel drop in distillate inventories, even while forecasting increases in crude and gasoline supplies.

Light, sweet crude for March delivery jumped 46 cents to $59.203 a barrel in midday trading on the New York Mercantile Exchange, after rising as high as $59.99 a barrel in electronic trading. The contract on Monday slipped 28 cents to settle at $58.74 a barrel.

Oil hasn't traded above $59 a barrel since the first trading day of the year, Jan. 3, when crude fell from above $60 a barrel to settle at $58.32.

"The overall market sentiment is much more bullish now. The cold weather (in the U.S.) has helped the oil market find a floor and that has brought the investors back in," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.

Natural gas and crude oil prices edged up Monday on expectations of colder weather in major U.S. markets.

Light, sweet crude for March delivery rose 10 cents to $59.10 a barrel in early afternoon trading on the New York Mercantile Exchange. Brent crude for March delivery on the ICE Futures exchange inched up 2 cents to $58.43 a barrel.

Natural gas futures gained nearly 17 cents to $7.644 per 1,000 cubic feet.

"The weather is what's the most urgent, short-term issue here," said Tim Evans, an energy analyst at Citigroup Global Markets. "Over the weekend, the weather forecast became a lot colder for the six to 10 day period as well as the 11 to 15 day period."

Colder-than-normal temperatures blanketed the Northeast and Midwest on Monday and were expected to linger through Feb. 18, according to the National Weather Service. On Monday, temperatures registered in the single-digits and teens from Maryland to Maine, while many states in the Midwest were experiencing below zero temperatures with dangerous wind chills.

The Northeast accounts for 80 percent of U.S. heating oil consumption, while the Midwest is the bulk of the natural gas market. Heating oil futures rose half a cent to $1.6890 a gallon.

Oil prices had fallen as low as $49.90 a barrel last month after an unseasonably warm January.

Monday's gain in oil prices comes after Friday's rally that saw prices rise $1.72 to settle at $59.02 a barrel on winter weather concerns and supply worries driven by a second round of OPEC production cuts. That was the highest close since it finished at $61.05 on the last trading day of 2006.

Working gas in storage was 2,571 Bcf as of Friday, January 26, 2007, according to EIA estimates. This represents a net decline of 186 Bcf from the previous week. Stocks were 152 Bcf higher than last year at this time and 454 Bcf above the 5-year average of 2,117 Bcf. In the East Region, stocks were 283 Bcf above the 5-year average following net withdrawals of 120 Bcf. Stocks in the Producing Region were 165 Bcf above the 5-year average of 642 Bcf after a net withdrawal of 45 Bcf. Stocks in the West Region were 6 Bcf above the 5-year average after a net drawdown of 21 Bcf. At 2,571 Bcf, total working gas is above the 5-year historical range.

A fresh slug of arctic air will keep temperatures in the Midwest and Plains below mid-winter averages tomorrow.

Snow showers and squalls will plague areas from the Great Lakes southward into eastern Kentucky. The heaviest squalls (lake-effect) will target southwest Michigan and northeast Ohio where local totals could reach a foot. Gusty winds will plague most areas.

High temperatures are predicted to range from the single digits in parts of southern Minnesota and northern Iowa to the 30s in portions of the western Dakotas, south-central Kansas and much of Kentucky.

Oil prices fell Monday despite forecasts of continued cold weather across the U.S. East Coast, a major market for heating oil.

An unusually warm winter in the U.S. drove crude oil below $50 a barrel earlier this month, but the price has since risen about 10 percent as cold weather returned. Forecasters predicted below-normal temperatures on the U.S. East Coast region would continue into at least the first week of February.

"The continuation of cold weather in the United States -- after a pretty warm start of the winter -- helps shore up prices because if there was no cold weather at all, there would be huge inventories," said Tobin Gorey, a commodity strategist with the Commonwealth Bank of Australia in Sydney. "The market's not worried about that any longer."

Light, sweet crude for March delivery on the New York Mercantile Exchange fell 34 cents to $55.08 a barrel in electronic trading by early afternoon in Europe. The contract had risen $1.19 on Friday.

Oil prices rose above $55 a barrel Friday on concerns that oil producers were complying with OPEC's production cuts and on expectations of continued blustery weather in the northeastern United States.

Light, sweet crude for March delivery on the New York Mercantile Exchange rose $1.02 to $55.25 a barrel in morning trading in New York. Brent crude rose $1.03 to $55.15 a barrel on the ICE Futures exchange in London.

Tank tracker Lloyds Marine Intelligence Unit said Friday that oil exports from the Organization of Petroleum Exporting Countries fell to less than 23 million barrels a day in December from just under 24 million barrels a day in November, according to a Dow Jones newswire report.

Working gas in storage was 2,757 Bcf as of Friday, January 19, 2007, according to EIA estimates. This represents a net decline of 179 Bcf from the previous week. Stocks were 251 Bcf higher than last year at this time and 472 Bcf above the 5-year average of 2,285 Bcf. In the East Region, stocks were 291 Bcf above the 5-year average following net withdrawals of 75 Bcf. Stocks in the Producing Region were 170 Bcf above the 5-year average of 682 Bcf after a net withdrawal of 61 Bcf. Stocks in the West Region were 11 Bcf above the 5-year average after a net drawdown of 43 Bcf. At 2,757 Bcf, total working gas is above the 5-year historical range.

Crude oil fell, paring yesterday's 4.7 percent gain, after an Energy Department report showed that the U.S. has ample fuel inventories.

Crude-oil supplies rose 789,000 barrels to 322.2 million last week, according to the report. Stockpiles of distillate fuel, which include heating oil and diesel, climbed 750,000 barrels to 142.6 million, the report showed. Yesterday, prices jumped the most since September 2005 after the U.S. said it would double the Strategic Petroleum Reserve by 2027.

On the eve of U.S. President George W. Bush's address to Congress which is expected to tout the need for more U.S. energy independence, Saudi Arabia's U.S. ambassador on Monday said that the world's biggest oil user will rely on Middle East crude oil "for many years to come."

Bush's annual State of the Union address on Tuesday is expected to touch on key energy policy points after Bush made the surprise pronouncement during last year's address that the United States is addicted to crude oil, including supplies imported from the Middle East.

However, U.S. policymakers should be talking about interdependence with Middle East suppliers, not independence, said Prince Turki Al-Faisal, the kingdom's U.S. ambassador, speaking at George Washington University.

"I think we should be talking not about being independent of Middle East oil for the United States but rather being interdependent with the Middle East for energy sources," Al-Faisal said.

The United States and other nations "will remain in need of the resources of our part of the world in the energy sector for many years to come and that is something that your people should realize," he said.

Saudi Arabia is the world's biggest crude oil producer and the linchpin of the OPEC producer group, which pumps over a third of global oil supplies.

ConocoPhillips and Marathon Oil Corporation today announced the companies have jointly filed for a 2-year extension of the Kenai Liquefied Natural Gas (LNG) facility's export license with the U.S. Department of Energy. The current license ends March 31, 2009 and this application would extend the export license thru March 31, 2011.

The Kenai LNG facility, located in Nikiski, Alaska, is the only LNG export plant in North America. The facility initiated operations in 1969 and today employs 58 people; the plant also supports another 128 jobs in the Kenai community. In addition, the operations of the plant contribute approximately $50 million in royalties and taxes to the state and local economies.

"This extension will mean continued investments in the development of Cook Inlet gas resources and will maintain high paying jobs in the community," said Darren Jones, ConocoPhillips Vice President of Alaska Commercial Assets. "ConocoPhillips believes that Cook Inlet has sufficient gas resources to maintain a strong industrial base on the Kenai Peninsula and this extension will provide an incentive for further gas development."

"The Kenai LNG operation has played a vital role in the economy of Southcentral Alaska for 38 years," said John Barnes, manager of Marathon's Alaska Production Operations. "This operation is not only a key element of our Alaskan operations, it is a strategically important asset for the region and the state, and its continued operation provides options and flexibility in meeting the future energy needs of the region."

In addition to the direct and indirect employment and other economic benefits to the community, there are hundreds of exploration, production and oil field service jobs in the Cook Inlet fields that provide gas to the facility.

The plant, operated by ConocoPhillips, is owned by ConocoPhillips (70 percent) and Marathon Oil Corporation (30 percent).

Working gas in storage was 2,936 Bcf as of Friday, January 12, 2007, according to EIA estimates. This represents a net decline of 89 Bcf from the previous week. Stocks were 354 Bcf higher than last year at this time and 491 Bcf above the 5-year average of 2,445 Bcf. In the East Region, stocks were 262 Bcf above the 5-year average following net withdrawals of 52 Bcf. Stocks in the Producing Region were 193 Bcf above the 5-year average of 720 Bcf after a net withdrawal of 20 Bcf. Stocks in the West Region were 37 Bcf above the 5-year average after a net drawdown of 17 Bcf. At 2,936 Bcf, total working gas is above the 5-year historical range.

Saudi Arabia plans to increase its crude oil production capacity nearly 40 percent by 2009 and double its refining size over the next five years to keep pace with growing global demand, the country's oil minister said Thursday.

The minister, Ali Naimi, said the plans were part of a $80 billion commitment that Saudi Arabia — the world's biggest oil exporter — had made to increase oil supplies in the global market.

"Saudi Arabia is committed to increasing the availability of energy to global markets," he said.

The country's priority is in investments to increase sustainable oil production capacity to 12.5 million barrels daily by 2009, from 9 million barrels now, Naimi said.

"Additional projects have been identified for implementation after 2009, if warranted by market conditions."

Naimi blamed the sharp rise in global crude prices over the past two years mostly on "insufficient investment and rising energy demand," especially from the booming economies of Asia.

"The rise has been a wake-up call for the industry and for producers and consumers alike, who are now beginning to address deliverability problem head on," he told delegates to an international energy conference in New Delhi.

Saudi Arabia, which has a quarter of the world's proven oil reserves, has a significant stake in ensuring stable markets, Naimi said.

Saudi Arabia is also making substantial investments in refineries within and outside the country so to double its refining capacity to 6 million barrels a day over the next five years, he said.

Naimi said an assessment by his government has revealed that "oil will remain the fuel of choice for the transportation sector and as such, will make up a significant portion of new energy demand in the coming decades."

He said he believes there are enough oil resources to meet energy demands for the next 30 years.
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Saudi Arabian Oil Minister Ali al-Naimi has sent crude prices lower with his rejection of calls for further cuts in production.

The minister, who represents the Organisation of Petroleum Exporting Countries' largest producer, said the group must wait to assess the effect of two reductions already agreed — 1.7 million barrels a day, or 2 per cent of world supply.

Crude prices have already plunged 16 per cent this year, leading Venezuela and Algeria to seek a third accord since October to cut supply.

"There is actually no real need now," Mr al-Naimi told reporters as he arrived in New Delhi for an oil conference. "I believe in a very short time it is going to improve."

OPEC agreed on a 1.2 million barrel a day cut, effective from November 1, at an October 20 meeting in Doha, Qatar.

Warmer than usual winter weather has curbed consumption in the northern hemisphere, increasing stockpiles in developed economies.

Oil fell below $US52 a barrel after Mr al-Naimi spoke, extending a four-week slump that prompted the calls for an emergency OPEC gathering before the next regular meeting scheduled for March 15.

Futures for February delivery fell as much as 3.5 per cent to $51.15 a barrel on the New York Mercantile Exchange on Monday.

Oil prices slumped Tuesday after OPEC powerhouse Saudi Arabia reportedly said there was no need for further production cuts to prop up the market.

The comments, by Saudi Oil Minister Ali Naimi, added to growing sentiment that the Organization of Petroleum Exporting Countries would not call a special meeting any time soon to discuss further production cutbacks to stem a more than 13-percent slide in prices this year.

"There is no need now (for further cuts) on the basis of what market conditions are," Dow Jones Newswires quoted Naimi as saying after arriving in New Delhi for an international conference organized by India's Oil Ministry.

Benchmark light sweet crude plummeted $1.43 to $51.56 in morning trading on the New York Mercantile Exchange, after hitting a new 19-month intraday low of $51.25. The price was being compared with Friday's Nymex settlement as the exchange was closed Monday for the Martin Luther King Jr. holiday.

February Brent crude on London's ICE Futures exchange fell 76 cents to $52.36 on Tuesday on London's ICE futures exchange.

Heating oil futures slid nearly 2 cents to trade at $1.4860 per gallon; gasoline futures fell 4.3 cents to $1.3890; and natural gas futures dropped 2.9 cents to $6.572 per 1,000 cubic feet.

Crude oil rose from a 19-month low in New York after some traders said this week's drop in oil prices wasn't justified. Some analysts expect OPEC's members to cut production to stop prices from declining.

Crude oil fell 6.4 percent this week in New York as mild weather in the U.S. Northeast, the region that consumes the most heating oil, cut demand. OPEC President Mohamed al-Hamli said yesterday's drop below $53 a barrel was ``unacceptable'' and urged members to comply with the cuts in output they had promised to make in November and in February.

``The supply sides are going to remain tight,'' said Greg Smith, the U.K. managing director of the investment advisers Fat Prophets U.K. Ltd. ``OPEC can be successful in getting that price up, certainly getting it back towards $60 a barrel.''

Crude oil for February delivery rose as much as $1.06, or 2 percent, to $52.94 a barrel in after-hours electronic trading on the New York Mercantile Exchange, its first gain this week. The contract traded at $52.34 at 12:58 p.m. in London.

Brent crude oil for February settlement climbed as much as $1.24, or 2.4 percent, to $52.94 a barrel in electronic trading on the ICE Futures exchange and traded at $52.36 in London.

Some analysts and brokers expect a forecast for colder weather next week to push prices higher. Colder weather will reach the northeastern U.S. Jan. 17 through Jan. 21, according to the U.S. National Weather Service. Temperatures in the region were milder than normal through the first part of winter. New York had its third-warmest December on record.

``The temperature is expected to drop below normal after'' the next five days, said Michael Davies, an analyst in London with broker Sucden (U.K.) Ltd. ``Many traders are expecting OPEC to take action in order to support prices.''

Working gas in storage was 3,025 Bcf as of Friday, January 5, 2007, according to EIA estimates. This represents a net decline of 49 Bcf from the previous week. Stocks were 401 Bcf higher than last year at this time and 461 Bcf above the 5-year average of 2,564 Bcf. In the East Region, stocks were 241 Bcf above the 5-year average following net withdrawals of 28 Bcf. Stocks in the Producing Region were 182 Bcf above the 5-year average of 751 Bcf after a net withdrawal of 9 Bcf. Stocks in the West Region were 38 Bcf above the 5-year average after a net drawdown of 12 Bcf. At 3,025 Bcf, total working gas is above the 5-year historical range.

Summary of Weekly Petroleum Data for the Week Ending January 5, 2007

U.S. crude oil refinery inputs averaged 15.6 million barrels per day during the
week ending January 5, up 74,000 barrels per day from the previous week's
average.  Refineries operated at 91.5 percent of their operable capacity last
week.  Gasoline production declined last week compared to the previous week,
averaging nearly 9.2 million barrels per day, while distillate fuel production
increased, averaging over 4.4 million barrels per day.

U.S. crude oil imports averaged 9.5 million barrels per day last week, down
621,000 barrels per day from the previous week. Over the last four weeks, crude
oil imports have averaged over 9.4 million barrels per day, or 534,000 barrels
less than averaged over the same four-week period last year.  Total motor
gasoline imports (including both finished gasoline and gasoline blending
components) last week averaged over 1.0 million barrels per day. Distillate fuel
imports averaged 475,000 barrels per day last week.

U.S. commercial crude oil inventories (excluding those in the Strategic
Petroleum Reserve) dropped by 5.0 million barrels compared to the previous week.
However, at 314.7 million barrels, U.S. crude oil inventories remain above the
upper end of the average range for this time of year.  Total motor gasoline
inventories rose by 3.8 million barrels last week, and are near the upper end of
the average range.  Distillate fuel inventories rose by 5.4 million barrels, and
are above the upper end of the average range for this time of year.  Increases
were seen in both high-sulfur distillate fuel (heating oil) inventories and
diesel fuel inventories (a combination of ultra-low-sulfur and low-sulfur). 
Total commercial petroleum inventories jumped by 7.4 million barrels last week,
and are above the upper end of the average range for this time of year.

Total products supplied over the last four-week period has averaged 20.4 million
barrels per day, or 4.2 percent less than averaged over the same period last
year.  Over the last four weeks, motor gasoline demand has averaged 9.3 million
barrels per day, or 0.8 percent above the same period last year.  Distillate
fuel demand has averaged 4.2 million barrels per day over the last four weeks,
or 2.6 percent below the same period last year. Jet fuel demand is down 8.8
percent over the last four weeks compared to the same four-week period last
year.

Crude oil fell to the lowest in a year and a half as mild weather in the eastern U.S. curbed heating- fuel consumption, causing stockpiles to increase.

Temperatures in New York will rise to 48 degrees Fahrenheit (9 Celsius) today, 10 degrees above the normal high, the National Weather Service said. The city had its third-warmest December on record. OPEC will speed up a 500,000 barrel-a-day output cut by almost a month to stop the fall in oil prices, Qatar's oil minister said.

``It's hard to be worried about heating-oil supplies when we've seen 60-degree weather this January,'' said Rick Mueller, an analyst with Energy Security Analysis Inc. ``Refiners are shifting to gasoline production, which should leave us with ample supplies when demand picks up. Demand for crude oil should fall as the product stockpiles grow.''

Crude oil for February delivery fell $1.37, or 2.4 percent, to $54.72 a barrel at 10:21 a.m. on the New York Mercantile Exchange. Futures touched $53.88, the lowest since June 13, 2005, prior to Hurricane Katrina, which destroyed oil platforms and refineries along the U.S. Gulf of Mexico coast. Prices are down 10 percent this year and 14 percent from a year ago.

Crude oil rose for a second day on speculation that falling temperatures in the U.S. may boost heating demand in the world's largest energy consumer and as Russian supplies to Poland and Germany were curtailed.

Up to six inches of snow may fall today in parts of the U.S. Northeast, where four-fifths of the country's heating oil is burned, according to forecasting service Accuweather.com. Russian crude oil deliveries to Poland and Germany along a million barrel- a-day pipeline were halted following a dispute between Russia and Belarus, according to the Polish pipeline operator.

``The weather is the main driver of the market now,'' said Gerrit Zambo, an oil trader at BayernLB in Munich. ``Even small signs of cooler temperatures can bring prices back up toward the $60 a barrel region.''

Crude oil for February delivery rose as much as $1.41, or 2.5 percent, to $57.72 a barrel on the New York Mercantile Exchange and traded at $57.46 at 2:41 p.m. London time. Brent crude oil gained $1.35 to $56.99 a barrel on the London-based ICE Futures exchange.

Polish pipeline operator PERN Przyjazn SA and Grupa Lotos SA, Poland's second-largest refiner, said supplies via the Druzhba pipeline that transports Russian crude through Belarus were cut off last night. The Polish segment of the pipeline carries about 50 million tons of oil a year, including 27 million tons to German refiners.

U.S. Weather

Temperatures may drop below normal in the western U.S. this week and cooler weather will spread across most of the country until Jan. 20, according to the National Weather Service.

New York-traded crude rose 72 cents, or 1.3 percent, to $56.31 a barrel on Jan. 5 after dropping almost 9 percent the previous two sessions. Prices fell last week amid mild weather in the U.S. Northeast and after U.S. fuel inventories climbed more than expected.

Last week's price decline was the biggest since April 2005. The price of oil has plunged about 27 percent from the record $78.40 a barrel reached July 14 after Israeli forces invaded Lebanon to fight Hezbollah militants.

``The next move is likely to be back up again,'' said Adam Sieminski, chief energy economist at Deutsche Bank AG in New York. ``There could be rising hysteria in OPEC because a number of the countries like Iran and Venezuela have been spending like oil was going to stay at $70 a barrel.''

The Organization of Petroleum Exporting Countries agreed to cut output by 1.2 million barrels a day in November, citing slower-than-forecast demand growth and rising global stockpiles. Members agreed in December to cut another 500,000 barrels a day starting Feb. 1.