CADIZ TRADERS THREAD

Crude gains ahead of weekly supply data
NEW YORK (AFX) - Crude futures were higher early Wednesday, extending their
prior session advance with traders looking to the release of weekly supply data
expected to show a drawdown from the previous week.
Crude for February delivery was last trading up 29 cents at $58.38 a barrel.
The contract closed higher for the first time in five days Tuesday, following a
stronger economic growth outlook from China.
There was further support to prices in news of an attack on a Nigerian
pipeline in which eight people were killed. The pipeline, operated by Royal
Dutch Shell, caused a major oil spill and fire.
Weather forecasts remain mixed, with temperatures in New York and Chicago
expected to remain below normal for the next several days and then to warm up
late in the week and heading into next week.
Trader attention is now focused on today's supply data from the Department
of Energy.
Analysts at Fimat USA are expecting the data to show crude supplies down 1.2
million barrels in the latest week. IFR Markets is betting on a decline between
1 million and 3 million.
Distillate supplies likely fell by 800,000 barrels, Fimat said. IFR expects
a fall of 1 million to 2 million.
And motor gasoline inventories are expected to build by 1.1 million barrels,
according to Fimat, or by 1 million to 2 million, according to IFR.
At the same time, IFR expects a report due Thursday from the Energy
Department to reflect a decline of between 165 billion and 175 billion cubic
feet in natural gas -- "solidly above" the 119 billion-cubic-foot five-year
average.
The transit strike in New York City, which is preventing some oil traders
from making it into the exchange, could create thin trading conditions and
exaggerate the extent of any move today, said Man Financial analyst Edward Meir.
"Any surprise in the form of a distillate/heating oil draw could lead to
some price strengthening," he said.
Unleaded gasoline futures were last trading up 0.42 cent at $1.513 a gallon.
Heating oil was up 0.80 cent at $1.7283 a gallon. Natural gas was down 5.10
cents at $14.029 per million British thermal units.

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