CALDEIRÃO DE BOLSA

08 Jun 2004 12:07 GMT


=OIL FUTURES: Prices Rise On New Supply Concerns
By Norval Scott

Of DOW JONES NEWSWIRES

LONDON (Dow Jones)--Crude oil futures moved higher in trading early Tuesday, as new concerns surfaced over supply from Iraq.

At 1130 GMT, July Brent traded at London's International Petroleum Exchange was up 45 cents at $36.41 a barrel, off intraday highs of $36.55/bbl. The July light, sweet crude contract traded on the New York Mercantile Exchange was also up 30 cents at $38.91/bbl.

In particular, brokers were reacting to reports that the late-May sabotage attack on the Kirkuk pipeline will leave the conduit unable to transport oil for some time.

"The attack's not a new development, but the market's been surprised by the numbers coming out of Iraq," said a broker on the IPE floor.

"We thought there'd be more oil coming out of Iraq than there is, and the reports that the Kirkuk pipeline's going to be offstream for a while have made people ask whether there's going to be enough Iraqi crude in the market."

The rise has been mainly attributed to trade buying, brokers said.

08 Jun 2004 11:59 GMT


Strong Tanker Demand For 1st Half July On Saudi Output -Sources
DUBAI -(Dow Jones)- Demand for tankers loading Saudi crude in the first half of July is as strong as June demand, suggesting sustained higher levels of Saudi output in July, oil sources said Tuesday.

"July's the month, the Saudis are going to ship a lot of crude," said a tanker broker dealing with Persian Gulf very large crude carrier fixings.

The broker said he'd seen slightly higher demand for the first half of July than the second half of June. He expects similarly strong demand going into the second half of July, but a clearer picture on those fixings won't be available for another 5-10 days.

Saudi Arabia is now pumping 9.1 million barrels a day, but the kingdom has to take the pulse of global oil demand before deciding how much to supply in July, a Saudi oil official said Tuesday.

Saudi Arabia is scheduled to set its volumes of July oil sold to regular customers mid-June, but the kingdom has yet to decide whether it will reduce or increase production, the official said. Saudi Arabia pumped 8.48 million b/d in May, according to a Dow Jones Newswires survey.

A UAE oil official said its production was rising by 400,000 b/d, as promised by oil minister Obaid bin Saif al-Nasseri, but the exact level of the Gulf state's production is unclear.

The Dow Jones survey of May output pegged the UAE's output at 2.18 million b/d. Part, but not all, of the UAE's production increase would come from the return of oil fields from scheduled maintenance, the official said.

The broker said most of the extra UAE oil would head toward Asian markets.

Normally, tanker fixings would decline after strong April and May demand for crude to fill inventories for the strong-gasoline demand summer driving season in the U.S. But the broker said freight earnings so far this June remain unseasonably strong due to the extra Saudi volumes of U.S.-bound crude.

At its June 3 Beirut meeting, the Organization of Petroleum Exporting Countries decided to raise its output ceiling by 2 million b/d from July 1 to 25.5 million b/d and up a further 500,000 b/c to 26 million b/d from Aug. 1.

Saudi Arabia's quota will rise from 7.64 million b/d to 8.3 million b/d in July and to 8.45 million b/d from August. The UAE's quota will rise from 2.05 million b/d to 2.22 million b/d in July and 2.27 million b/d in August.

-By Simeon Kerr, Dow Jones Newswires; 971 4 390 8134; simeon.kerr@dowjones.com


(END) Dow Jones Newswires

06-08-04 0759ET

08 Jun 2004 11:56 GMT

Oil - Brent futures higher midday on Iraq pipeline sabotage - UPDATE
LONDON (AFX) - Brent futures were higher in midday trade on reports of sabotage on the Kirkuk pipeline between Iraq and Turkey, dealers said.

"Prices are higher on the initial reports," said GNI-Man Financial trader Lee Elliot.

At 12.30 pm Brent crude futures were 59 cents higher at 36.55 usd.

"We are waiting for further news on the extent of the damage on the vital pipeline," he added.

Investec analyst Bruce Evers said the market is up a lot higher than expected, "there is a history of sabotage on the Kirkuk to Ceyhan pipeline, and the market should be used to it."

The combination of the pipeline news and fears over a strike in Nigeria has caused prices to surge over 50 cents today, he said.

"Even the threat of disruption is still enough to cause jitters in the market," he said.

The Nigeria Labour Congress plans to launch a nationwide three-week-long general strike in protest at rising local fuel prices starting tomorrow.

Despite today's events the global market is now showing signs of looking balanced.