Oil prices rose a shade as a bout of speculative buying countered swelling stockpiles in the United States. U.S. light crude settled at US$50.96 after breaking over US$52 earlier in the session. London Brent settled down at US$50.77 a barrel. Speculators will be betting on a tighter market once higher demand kicks in for the U.S. summer driving season, cutting down a large supply cushion. Production problems from Venezuela, the world's fifth-largest oil exporter, helped feed bullish sentiment. Improper planning and low investments resulted in a 100,000 bpd day decline in crude output.
Recent inventory statistics from the U.S. government indicating highest levels in nearly six years have however, sided with the bears, helping drag U.S. oil prices down from early April's $58.28 record. OPEC production has risen steadily since the start of the year and the U.S. government data released on Wednesday showed commercial crude stocks rising 2.6 million barrels last week to 327 million barrels, their highest since July 1999.
Oil to be shipped by the Organization of the Petroleum Exporting Countries has risen to 270,000 barrels per day (bpd) against the April average, offering further evidence that exports are still rising.
07-May-05 
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