June 5, 2012 / 8:22 PM / 5 years ago

NYMEX-U.S. crude rises a second day on ISM data

 * ISM data overshadows euro zone worries, lifts oil
 * POLL-U.S. crude stocks down, product stocks up last week
 * Coming up: API U.S. inventory data, 4:30 p.m. EDT Tuesday
 NEW YORK, June 5 (Reuters) - U.S. crude oil futures rose for
a second straight day on  Tuesday as the vital U.S. service
sector grew faster than expected in May, the ISM industry report
showed - a small, bright lining that followed a spate of gloomy
economic reports. 	
 Gains were limited, however, as euro zone debt worries
deepened after Spain said credit markets were cutting off the
country. That pulled the euro lower against the dollar,
deterring investors from making more bullish bets on oil
futures.     	
 Ahead of weekly inventory reports, U.S. crude stockpiles
were forecast 500,000 barrels lower last week, a Reuters poll of
analysts showed. If confirmed, the drawdown will snap 10 weeks
of continuous increase. 	
 Distillate stocks were expected to show a 300,000 barrel
increase while gasoline stocks were seen likely up 700,000
barrels. Refinery utilization was predicted to have risen 0.6
percentage point. 	
 The industry group American Petroleum Institute will release
its inventory report at 4:30 p.m. EDT (2030 GMT). That will be
followed by data from the U.S. Energy Information
Administration, at 10:30 a.m. EDT, on Wednesday.	
   	
 FUNDAMENTALS     	
 * On the New York Mercantile Exchange, crude for July
delivery settled at $84.29 a barrel, rising 31 cents, or
0.37 percent, after trading between $83.31 and $84.92.	
 * In London, ICE July Brent crude oil futures 
finished 1 cent lower at $98.84 a barrel, trading between $97.68
and $99.63.	
 * U.S. crude's discount against Brent crude narrowed to
$14.55, from $14.87 on Monday. CL-LCO1=R	
 * NYMEX July heating oil settled at $2.6336 a gallon,
edging up 0.67 cent. It rebounded modestly after closing on
Monday at $2.6269, the lowest close for front-month heating oil
since Jan. 25, 2011. 	
 * NYMEX July RBOB gasoline gained 1.40 cents to close
at $2.6847. It ended down at $2.6707 on Monday, the lowest
settlement for front-month gasoline since Dec. 28, 2011. 	
 * The Institute for Supply Management said its services
index for the U.S. economy edged up to 53.7 from 53.5 in April,
a touch above economists' forecasts. A reading above 50
indicates expansion in the sector. 	
 * U.S. retail gasoline demand fell 2 percent in the week to
June 1, compared to the year-ago level as a dismal economic
outlook weighed on fuel consumption, data from MasterCard's
SpendingPulse report showed. Demand was 3.7 percent lower from
the previous week, the report also showed.  	
 * Purchasing managers' indexes showed that all of the euro
zone's major economies were now in various states of decline,
with the region's private economy shrinking in May at the
fastest pace in nearly three years. 	
 * Canadian oil output is poised to surge ahead far faster
than expected only a year ago, the industry's main lobby group
said, raising its forecast for 2020 production by half a million
barrels a day. [ID: nL1E8H56WL]	
 * Oil prices will weaken in the second half of this year as
demand reacts to a slowing global economy, while international
political tensions ease, Royal Dutch Shell CEO Peter
Voser said in Kuala Lumpur. <ID:nL3E8H51PU>	
 	
 MARKETS NEWS	
 * Wall Street rebounded as data showing a slight growth in
the U.S. service sector offset worries about the euro zone's
fiscal crisis. 	
 * The euro fell as Spain's treasury minister said high
borrowing costs were closing the country off to credit markets
and investors received scant comfort from an emergency
conference call of Group of Seven finance chiefs. 	
 * New York copper prices fell for a fifth straight day after
a series of declining business surveys across Europe underscored
a bleaker outlook for the global economy and industrial metal
demand. 	
 * Gold prices edged lower in light volume as the market
paused from last week's rally. 	
     	
 UPCOMING EVENTS, DATA	
 * American Petroleum Institute's weekly U.S. petroleum
inventory data, 4:30 p.m. EDT (2030 GMT), Tuesday.	
 * U.S. Energy Information Administration's U.S. petroleum
supply data, 10:30 a.m. EDT (1430 GMT), Wednesday.	
 	
     SETTLE     NET    PCT     LOW    HIGH  CURRENT  DAY AGO
               CHNG   CHNG                      VOL      VOL
 CLc1    84.29    0.31   0.4%   83.31   84.92  229,965  309,777
 CLc2    84.57    0.30   0.4%   83.61   85.20   46,448   64,637
 LCOc1   98.84   -0.01   0.0%   97.68   99.63  141,152  174,173
 RBc1   2.6847  0.0140   0.5%  2.6441  2.6911   38,102   61,931
 RBc2   2.6141  0.0093   0.4%  2.5830  2.6221   32,981   25,622
 HOc1   2.6336  0.0067   0.3%  2.6056  2.6443   35,603   59,042
 HOc2   2.6404  0.0048   0.2%  2.6144  2.6516   17,044   18,253
                                                                                     
 TOTAL MARKET            VOLUME                 OPEN  INTEREST
           CURRENT    Jun 04   30D AVG     Jun 04  NET CHNG
 CRUDE        448,439   580,789   535,372  1,446,448    -2,125
 RBOB         105,960   121,446   151,954    288,232     6,074
 HO            96,944   113,571   134,324    317,438      -902
 	
 (Reporting by Gene Ramos and Robert Gibbons; Editing by
Marguerita Choy)	
 

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