Action Economics morning alert7:38 June 17, 2009, EDT.(Canadian Press)
(Action Economics) - 05:53 EST Oil Action: Nymex crude futures have declined in the European morning session, erasing most gains recorded in the Asian session, ahead of today's EIA crude stocks report. A Bloomberg survey predicts that the U.S. Energy Department will report a drop in crude stockpiles of EUR 2 m barrels last week.
Yesterday the American Petroleum Institute reported U.S. crude inventories down by 1.3 mln barrels to 356.6 mln barrels last week. As of 9:34GMT the July Nymex future was down 34 cents per barrel at USD70.13 per barrel, after trading in a range between USD 69.91 to USD71.28.
Gushers of oil fill China tanks
ZHOUSHAN, China–One reason for the rebound in world oil prices sits on China's eastern seaboard, where rows of immense, squat oil tanks on an island south of Shanghai, have been filled to guard energy security.
Patrolled by military personnel, these tanks in Zhoushan are one of four locations where China keeps its national strategic reserves.
Since crude oil and other commodity prices plunged last year – oil tumbled from $147 (U.S.) a barrel last July to nearly $33 in December – China has rushed to build up stockpiles at bargain prices, economists say. That motive, more than a revival in industrial demand, has driven its recent import boom of oil, copper and other metals.
The United States has done similar deals to buy crude for its far larger Strategic Petroleum Reserve. Associated Press