Oil slips below $62 after six-month peak

22 May, 2009

Oil eased below $62 a barrel on Thursday, after rallying to a six-month high on Wednesday, as government data showed a steep drop in US crude and gasoline stockpiles ahead of the summer driving season. The market will study weekly US jobless claims and April leading indicators due later in the day for more clues on the pace of demand recovery in the world's top energy consumer. US crude for July delivery fell 59 cents to $61.45 a barrel by 0240 GMT.
It had settled at $62.04 a barrel, before trading up to a six-month high of $62.26 in post-settlement activity. London Brent was down 59 cents to $60.00. Crude oil and gasoline stockpiles in the United States tumbled sharply last week, according to the US Energy Information Administration's report on Wednesday, with crude declining 2.1 million barrels and gasoline falling 4.3 million barrels.mData due later is expected to reflect a mildly positive outlook for the US economy.
First-time claims for jobless benefits for the week ended May 16, due at 1230 GMT, are expected to slip to 630,000 from 637,000 in the previous week, a Reuters poll of economists showed. US leading indicators - due at 1400 GMT - are forecast to rise 0.8 percent in April, compared with a 0.3 percent decrease in March, according to another survey of economists by Reuters.
Oil was also boosted by the US currency's weakness. The dollar fell to a two-month low against the yen on Thursday, extending the previous day's slide when optimism about the US economy reduced safe-haven demand for the greenback. Shooting broke out in the Nigerian oil port city of Warri on Wednesday following days of military helicopter and gunboat raids on militant camps in the surrounding creeks.
Top Italian oil and gas company ENI SpA declared force majeure for its Brass River export terminal in Nigeria, adding that its output affected so far was 9,000 barrels per day. The Organisation of Petroleum Exporting Countries, which has agreed to cut 4.2 million barrels per day of output since September in a bid to prop up oil prices, will meet again on May 28 to decide output targets. But Opec has no reason to cut production again at the meeting, Algerian Energy and Mines Minister Chakib Khelil said this week.

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