STOCK MARKET WATCH -- Wednesday, 21 March 2012

[Ghost Dog]

13. Oil Rebounds From Biggest Drop in Three Months

Oil rebounded from the largest decline in three months in New York after an industry report showed crude stockpiles fell in the U.S, the world’s biggest consumer of the commodity.

Futures gained as much as 1.2 percent, recovering from a 2.3 percent drop yesterday after Saudi Arabia said it may boost supplies. U.S. crude inventories shrank 1.4 million barrels last week, the most in six weeks, according to the American Petroleum Institute. The Energy Department may say today that stockpiles climbed 2.2 million barrels, a Bloomberg News survey showed. Saudi Arabia can increase output by 25 percent immediately, Oil Minister Ali al-Naimi said. Prices have risen this year on concern tension with Iran threatens supply...

... U.S. gasoline stockpiles decreased 2 million barrels in the week ended March 16, according to the median estimate of 11 analysts surveyed by Bloomberg News. Yesterday, the API yesterday said supplies slid 1.4 million barrels.

The Energy Department will release its weekly report at 10:30 a.m. in Washington.

Commercially held crude inventories in China, the second- largest oil consumer, fell 3.8 percent in February, according to a newsletter published by the official Xinhua News agency. That’s about 12.5 million metric tons, Bloomberg calculations showed. Supplies were down for the fourth time in five months.

Brent crude rallied 11 percent last month, the most in a year, on concern European Union and U.S. sanctions against Iran’s nuclear program will disrupt oil exports from the Middle East. Iranian output slipped 45,000 barrels to 3.45 million barrels a day in February, according to a Bloomberg survey of analysts and producers.

/... http://www.bloomberg.com/news/2012-03-20/oil-trades-near-three-day-low-on-saudi-output-increase-pledge.html

... Spinning, much?