Oil prices were volatile in mid-November 2004, swinging sharply after the US Department of Energy released its weekly inventory report. New York December light sweet crude settled near $45.12 a barrel, having briefly spiked to $46.55 following the data before retreating.
US crude stockpiles grew by 800,000 barrels to 292.3 million barrels for the week ending 12 November, well under the 1.8 million barrels analysts had forecast. Distillate inventories dropped one million barrels to 114.6 million, a ninth straight weekly decline, though heating fuel reserves specifically edged up 700,000 barrels to 49.1 million. Gasoline stocks also fell, by 400,000 barrels to 200.9 million.
Despite the bullish short-term data, some traders used the price bounce as a selling opportunity, reflecting bearish medium-term sentiment among certain market participants. London Brent crude for January delivery eased four cents to $42.25 a barrel.
Iran's oil minister, Bijan Namdar Zanghaneh, said world markets were oversupplied and that elevated prices reflected political factors rather than fundamentals. OPEC's next ministerial meeting is scheduled for 10 December in Cairo.
In Iraq, saboteurs blew up a pipeline west of Samarra that connects the Baiji refinery to the Dora refinery near Baghdad, the latest attack on the country's oil infrastructure.
Historical summary. TurkishPress restated this AFP wire report, first published in November 2004, in its own words.