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RPT-UPDATE 3-Oil prices ease from 2016 highs on stronger dollar

Published 2016-06-10, 05:50 a/m
© Reuters.  RPT-UPDATE 3-Oil prices ease from 2016 highs on stronger dollar
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* Dollar index gains for second day running
* U.S. government says global oil disruptions peak
* New attacks in Nigeria support prices

(Repeats to additional subscribers)
By Henning Gloystein and Dmitry Zhdannikov
SINGAPORE/LONDON, June 10 (Reuters) - Oil prices fell on
Friday, as a stronger dollar pulled crude off 2016 highs hit
this week, although strong refinery demand and global supply
disruptions lent support.
Brent oil futures LCOc1 were trading at $51.15 per barrel
at 0910 GMT, down 80 cents while U.S. West Texas Intermediate
(WTI) futures were down 85 cents at $49.71 a barrel.
Analysts said that a rebound in the dollar .DXY had dented
oil prices by making fuel imports for countries using other
currencies more expensive.
The dollar index .DXY was up 0.28 percent adding to
Thursday's gains as jittery global financial markets sent
investors toward safe haven currencies.
"Oil prices eased back from a near 12-month high as the
dollar reversed its recent trend," ANZ bank said on Friday
adding that supply disruptions around the world should help to
keep prices from falling deeper.
Crude prices have almost doubled since touching their lowest
in more than a decade in early 2016 as strong demand and supply
disruptions erode a glut that pulled down prices by as much as
70 percent from a mid-2014 peak.
Declines in U.S. shale oil output are being compounded by
steep falls in Nigerian production due to attacks by militants
and in Canada due to forest fires.
The U.S. government said on Thursday unplanned global oil
supply disruptions averaged more than 3.6 million bpd in May,
the highest monthly level recorded since it started tracking
disruptions in January 2011.
On Friday, the Niger Delta Avengers militant group said it
had blown up the Obi Obi Brass trunk line operated by ENI
ENI.MI .
On the demand side, global refining activity is expected to
hit a record high just as crude supply disruptions around the
world tighten the market.
Available global refining capacity will reach 101.8 million
bpd in August, its highest on record, and up from around 97.25
million bpd in March, data on Thomson Reuters Eikon shows.
Investment bank Jefferies said on Friday that U.S. refinery
utilisation reached 90.9 percent in the first week of June.
Consultancy JBC Energy said it had increased its 2016 oil
demand growth outlook to above 1.4 million barrels per day,
largely on increased U.S. gasoline consumption.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Global refining capacity to hit new record http://tmsnrt.rs/1PND18i
COLUMN-Oil market is back in balance: Kemp
Unplanned supply disruptions http://www.eia.gov/todayinenergy/detail.cfm?id=26592
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Editing by Jason Neely)

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