NYMEX-Crude ends higher third day on demand hopes


NEW YORK – U.S. crude oil futures ended higher for the third consecutive session on Tuesday in thin,
pre-holiday trade, driven by rising expectations for economic growth and increased demand for gasoline and heating oil.

Front-month gasoline January RBF1 touched a session high $ 2.4013 per gallon, the highest intraday price since May 4th in front-month RBOB hit $ 2.4315 a gallon, still supported by higher expectations of a holiday driving demand.

Also, the supply of the New York Harbor was hit by the continued closure of a gasoline-making unit at the Hovensa LLC refinery in St. Croix, U.S. Virgin Islands, and the ditch arbitrage window for fuel shipments from Europe.

Front-month January heating oil rose to a new HOF1 26-month high of $ 2.5193 per gallon amid cold weather in the Northeast, the largest regional oil market, although forecasters expect mild temperatures in the last week of the year.

Traders were gearing up for the weekly inventory data, first of these roles in the later days of the industry
group American Petroleum Institute, followed by the U.S. Energy Information Administration data on Wednesday.

U.S. crude oil inventories probably fell by 2.3 million barrels on average last week, an expanded Reuters poll showed on Tuesday. Distillate stocks may have declined 700,000 barrels and gasoline inventories probably rose 1.4 million barrels, The poll also showed. [EIA / S]

BASICS

* On the New York Mercantile Exchange, February crude CLG1, the new front month, settled 45 cents higher, or 0.5 percent, to $ 89.82 a barrel. It hit a session peak of $ 89.97, the highest since December 7 two years high of $ 90.76 hit CLF1 January crude, which expired Monday at $ 88.81.

* U.S. retail gasoline demand rose 0.1 percent last week, Although gasoline prices climbed to a 25-month high
according to the weekly MasterCard Advisors’ spending pulse report. Average gasoline demand increased by 6,000 tons per day 9.188 million bpd in the week to December 17, the report shows.

* AccuWeather.com expects temperatures in the Northeast to generally average lower than normal for the next week, with something milder readings this month end.

* Snow and ice grounded flights over Northern Europe on Tuesday, retailers fretted as they would
struggle to make up lost sales because of bad weather with only four shopping days until Christmas.
Markets News

* U.S. stocks advanced on solid earnings and a flurry of merger action that investors believed would accelerate the market uptrend.

* The euro fell against the dollar in a low volume trading as concerns of more ratings downgrades for debt-strapped euro countries were asked to light up the currency by traders the year ends. The dollar rose 0.1 percent against a basket of currencies. [USD /]. DXY.

* Gold prices rose toward $ 1,390 an ounce in Europe, supported by fresh strength in the euro and the exuberant interest in the metal as a haven from risk for fear of further borrowing strains in the eurozone. [GOL /]

* Copper rose to a re cord high at $ 9,392 per tonne as supply concerns on the market after Chile Collahuasi put my stop shipments, with a falling dollar are also supporting prices.

    SETTLE     NET    PCT     LOW   HIGH   CURRENT  DAY AGO
              CHNG   CHNG                    VOL      VOL
CLc1    89.82    0.45   0.5%   89.06   89.97  170,063   33,048
CLc2    90.64    0.48   0.5%   89.85   90.74   54,700  265,975
LCOc1   93.20    0.46   0.5%   92.35   93.43  100,507  106,864
RBc1   2.3985  0.0207   0.9%  2.3725  2.4013   13,553   33,104
RBc2   2.3816  0.0196   0.8%  2.3593  2.3839   29,243   41,056
HOc1   2.5164  0.0269   1.1%  2.4803  2.5193   16,658   34,941
HOc2   2.5291  0.0253   1.0%  2.4852  2.5318   28,555   39,666
TOTAL MARKET            VOLUME                 OPEN  INTEREST
          CURRENT    Dec 20   30D AVG     Dec 20  NET CHNG
CRUDE        314,110   554,032   677,615  1,359,780    -9,682
RBOB          68,291   107,224   124,690    283,739     3,595
HO            70,135    99,476   109,711    310,862     1,099

    SETTLE     NET    PCT     LOW   HIGH   CURRENT  DAY AGO
              CHNG   CHNG                    VOL      VOL
CLc1    89.82    0.45   0.5%   89.06   89.97  170,063   33,048
CLc2    90.64    0.48   0.5%   89.85   90.74   54,700  265,975
LCOc1   93.20    0.46   0.5%   92.35   93.43  100,507  106,864
RBc1   2.3985  0.0207   0.9%  2.3725  2.4013   13,553   33,104
RBc2   2.3816  0.0196   0.8%  2.3593  2.3839   29,243   41,056
HOc1   2.5164  0.0269   1.1%  2.4803  2.5193   16,658   34,941
HOc2   2.5291  0.0253   1.0%  2.4852  2.5318   28,555   39,666
TOTAL MARKET            VOLUME                 OPEN  INTEREST
          CURRENT    Dec 20   30D AVG     Dec 20  NET CHNG
CRUDE        314,110   554,032   677,615  1,359,780    -9,682
RBOB          68,291   107,224   124,690    283,739     3,595
HO            70,135    99,476   109,711    310,862     1,099

source:reuters


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