Gasoline and heating oil rose after OPEC ministers couldn’t reach a decision on production quotas at their meeting in Vienna today, according to the group’s secretary-general, Abdalla el-Badri.
Futures followed crude oil higher after Badri said ministers didn’t reach a consensus. The Organization of Petroleum Exporting Countries was poised to boost output for the first time since 2007.
“The OPEC meeting just broke up with no consensus on production levels and the market was anticipating they would increase production,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston.
Gasoline for July delivery rose 1.77 cents, or 0.6 percent, to $3.0096 a gallon at 10:04 a.m. on the New York Mercantile Exchange. Prices fell as low as $2.9623 earlier before jumping to $3.0265 after the OPEC announcement.
OPEC accounts for 40 percent of the world’s oil supply. The production limit has been unchanged since December 2008, when it was capped at 24.845 million barrels a day for all members except Iraq.
“It looked as if some people were betting on a million- and-a-half barrel hike coming through,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “Meanwhile, the economy is still kind of sputtering. And there’s plenty of supplies.”
Crude oil for July delivery rose $1.35, or 1.4 percent, to $100.44 a barrel on the Nymex.
The Energy Department is scheduled to report last week’s inventories at 10:30 a.m. today inWashington.
Stockpiles of gasoline probably rose 1.05 million barrels, according to the median estimate of 14 analysts in a survey by Bloomberg News.
Inventories of diesel and heating oil likely increased 125,000 barrels, according to the survey. Oil stockpiles probably fell 1.38 million barrels.
Gasoline demand at the pump slid 2.9 percent last week, according to a MasterCard Inc. (MA)SpendingPulse report yesterday.
“The market is keeping an eye on demand destruction,” said Phil Flynn, vice president of research at PFGBest in Chicago.
Regular gasoline at the pump fell 1.3 cents to $3.748 a gallon, AAA said on its website. That’s the lowest price since April 7.
Heating oil for July delivery added 2.18 cents, or 0.7 percent, to $3.0988 a gallon on the exchange.
Futures followed crude oil higher after Badri said ministers didn’t reach a consensus. The Organization of Petroleum Exporting Countries was poised to boost output for the first time since 2007.
“The OPEC meeting just broke up with no consensus on production levels and the market was anticipating they would increase production,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston.
Gasoline for July delivery rose 1.77 cents, or 0.6 percent, to $3.0096 a gallon at 10:04 a.m. on the New York Mercantile Exchange. Prices fell as low as $2.9623 earlier before jumping to $3.0265 after the OPEC announcement.
OPEC accounts for 40 percent of the world’s oil supply. The production limit has been unchanged since December 2008, when it was capped at 24.845 million barrels a day for all members except Iraq.
“It looked as if some people were betting on a million- and-a-half barrel hike coming through,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “Meanwhile, the economy is still kind of sputtering. And there’s plenty of supplies.”
Crude Rises
Brent crude gained $1.14, or 1 percent, to $117.92 a barrel on the London-based ICE Futures Europe exchange. Product futures are vulnerable to changes in Brent because refineries on the U.S. East Coast process oil grades that are sold relative to the European benchmark.Crude oil for July delivery rose $1.35, or 1.4 percent, to $100.44 a barrel on the Nymex.
The Energy Department is scheduled to report last week’s inventories at 10:30 a.m. today inWashington.
Inventories of diesel and heating oil likely increased 125,000 barrels, according to the survey. Oil stockpiles probably fell 1.38 million barrels.
Gasoline demand at the pump slid 2.9 percent last week, according to a MasterCard Inc. (MA)SpendingPulse report yesterday.
“The market is keeping an eye on demand destruction,” said Phil Flynn, vice president of research at PFGBest in Chicago.
Regular gasoline at the pump fell 1.3 cents to $3.748 a gallon, AAA said on its website. That’s the lowest price since April 7.
Heating oil for July delivery added 2.18 cents, or 0.7 percent, to $3.0988 a gallon on the exchange.
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