Low US stocks prop up prices

MARKET REVIEW/ DOMESTIC - ENERGY

The fear of low petroleum product stocks in the USA, the world's largest consumer of the products, continued to keep the international prices of crude oil high in the $33-34 a barrel range despite a perceptible decline in oil demand elsewhere because of the onset of hot weather.

Prices were also kept high following escalation of violence in Iraq and threats of supply disruption from that region.

Oil prices have not shown any signs of a decline despite most of the OPEC member-countries displaying an utter disregard for the one million barrels production cut announced by the cartel. Many countries are known to be producing much above their quota.

The international benchmark Brent (dated) crude, which was hovering at $33.08 a barrel on April 7, moved up to $33.72 a barrel on April 8, to be quoted at $34.27 a barrel on April 12.

Jet fuel (Singapore), which was being quoted at $37.98 a barrel on April 7, moved up to $39.20 a barrel on April 8, and touched $39.15 a barrel on April 12.

Prices of gas oil (Singapore) with 0.5 per cent sulphur, which were ruling at $37.10 a barrel on April 7, moved up to $38.38 a barrel on April 8, and touched $38.43 a barrel on April 12.

Naphtha (Singapore), which was being quoted at $35.05 a barrel on April 7, touched $35.95 a barrel on April 8, and was quoted at $36.75 a barrel on April 12.

Prices of unleaded petrol (fob Singapore), which were ruling at $441.78 a barrel on April 7, moved down to $41.63 a barrel on April 8, and touched $43.23 a barrel on April 12.