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DJ OIL FUTURES:Crude In NY Loses About $1; Supply Fears Ease(Comtex Business Via Thomson Dialog NewsEdge)By Leah McGrath Goodman Of DOW JONES NEWSWIRES NEW YORK, Apr 04, 2006 (Dow Jones Commodities News via Comtex) --Crude oil futures in New York fell about a dollar after Tuesday's open, slipping below $66 a barrel, as a lull in petroleum-supply concerns prompted some traders to cash out of the market. The pullback came as worries eased - even if briefly - over Iran's nuclear ambitions and Nigerian violence. Because both countries make hefty contributions to global oil supplies, disruptive events in either stand to have an outsized impact on the price of crude. In the U.S., concerns lingered just below the surface over the June 1 start to hurricane season and changes to gasoline specifications this summer, but most traders planned to wait for Wednesday's petroleum-inventory data before tinkering with energy bets. From the ground, traders said the market appeared to have overheated in the sharp run-up toward a nine-week high last session. "We've had almost a straight run to $68 from $61 a barrel," said Michael Guido, director of hedge fund marketing and commodity strategy in New York for Societe Generale. "This is clearly a market that is overstretched and running out of steam." Benchmark light, sweet crude futures for May fell as much as $1.09 cents to $65.65 a barrel in early trading on the New York Mercantile Exchange. The contract ended after-hours trading down at $66.10 a barrel. In London, Brent blend crude futures for May fell $1.11 to $65.73 a barrel on ICE Futures. Some market participants expected U.S. oil prices to hold above $65 a barrel, as supply jitters weren't too far in the offing. In Europe, Total SA (TOT) says production at three refineries in France was hurt Tuesday by labor protests, and in the U.S. commercial fuel inventories were expected to shrink for the fifth time in as many weeks. According to a survey by Dow Jones Newswires of 10 energy analysts, commercial gasoline inventories were expected to fall by 1.6 million barrels in the week ended March 31, while distillates were seen sliding by 1.1 million barrels. Commercial crude stocks were expected to rise 740,000 barrels on the week, according to the average of analysts estimates, even as operating rates as U.S. refineries rose. Nymex refined-product futures also fell in early trading Tuesday, with heating oil futures leading the declines. Heating oil futures for May on Nymex last traded down 1.62 cents at $1.8460 a gallon, while gasoline futures for the same month edged down 7 points to $1.8625 a gallon. On ICE Futures, April gasoil tumbled $14.25 to $578 a metric ton. Looking ahead, Nigeria's government plans to hold a meeting Wednesday that aims to calm tensions between foreign oil companies pumping the nation's oil and local militants fighting to loose the grip of Big Oil. Elsewhere, Iran's foreign minister maintained the oil-rich country would never give up its right to enrich uranium, but was willing to enter negotiations with other countries on large-scale uranium enrichment, which the West fears could lead to Iran's development of nuclear arms. On the weather front, forecasters at Colorado State University's Department of Atmospheric Science released a report Tuesday predicting a "very active" Atlantic hurricane season this year, though not on par with 2005. The forecasters predicted 17 named storms for 2006, topping the 50-year average of 9.6 storms but falling below last year's record-shattering 27. -By Leah McGrath Goodman, Dow Jones Newswires; 1-201-938-2062; [email protected] (END) Dow Jones Newswires 04-04-06 1131ET |