MTECHTIPS;-Oil jumps almost 2 percent after European storage data


MTECHTIPS;-Oil jumps almost 2 percent after European storage data

MTECHTIPS-Oil prices surged almost 2 percent on Tuesday along with rising gasoline and heating oil futures after a report showed European product stockpiles fell despite an increase in refinery crude runs. European refineries increased their crude oil intake in June, but stocks of oil products, particularly diesel, slid, Stockpile data showed on Tuesday. “That tells you demand globally is a lot stronger than people thought it was going to be and that is having a net positive effect on heating and gasoline prices,” said Scott Shelton, energy specialist at energy brokerage ICAP (LON:NXGN) in Durham, North Carolina. Benchmark Brent (LCOc 1) futures were up 84 cents, or 1.8 percent, at $47.72 a barrel by 12:15 p.m. EDT (1615 GMT), while U.S. West Texas Intermediate crude (CLc1) was up 82 cents, or 1.9 percent, at $45.22 per barrel. U.S. heating oil (HOc 1) futures were also up almost 2 percent at midday. This boosted the products crack spread <cl321-1=r>measure of refinery margins to the highest since late May. </cl321-1=r>The European inventory report came ahead of weekly data on U.S. crude inventories. The American Petroleum Institute (API) reports on Tuesday afternoon and the U.S. Energy Information Administration reports Wednesday morning.

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