Hurricane threat likely to lead to oil stock-building
24/05/2006 - 09:41:56The price of Brent crude oil has little prospect of dropping significantly below $69/bbl (€101.14), as predictions of a bad hurricane season weigh heavily on the US market, according to Paul J. Harris of Bank of Ireland Global Markets.
Oil is currently trading around $70.30 per barrel (€103.05).
Markets are subdued ahead of the US oil reserves data which is expected to show the fourth consecutive week of stock-building.
Many refiners are trying to up reserves ahead of the US driving season which kicks off after Memorial Day on Monday.
Additionally, China has increased state-capped gasoline prices by up to 15% on the year.
