NYMEX oil to slip, consolidate after gains on data

Reuters, 06.12.03, 9:38 AM ET NEW YORK, June 12 (Reuters) - NYMEX crude futures were expected to move lower on Thursday, testing technical support and consolidating as traders take profits after pushing well above $32 on Wednesday. "We were due for a corrective pull back," said a New York trader. "There's still concern over inventories." NYMEX July crude was called to open 20 cents to 30 cents lower after ending ACCESS trade down 29 cents at $32.07 a barrel, trading $32.03 to $32.27. Technical analysts on Thursday were expecting support for NYMEX July crude at $31.46, with resistance slated at $32.80. In London at 9:33 a.m. EDT (13:33 GMT), the International Petroleum Exchange (IPE) July crude contract traded 29 cents lower at $28.10 a barrel. Wednesday's rally was fueled by U.S. government data showing crude stocks down last week by 4.6 million barrels to 284.4 million barrels, over 12 percent below last year. Analysts had expected a inventories to be up slightly. "We had a nice run up yesterday so we will probably see some testing of technicals," said a NYMEX floor trader. The trader added that a bounce higher was still a possibility, with $34.75 a target for crude futures and another penny higher for gasoline. The U.S. inventory data showing lower crude stocks came after OPEC announced it would put off fresh supply cuts at a ministerial policy-setting meeting on Wednesday. Fears that ramped up Iraqi output or anemic demand going forward could pressure prices caused the cartel to call for another meeting on July 31. Traders said this potential for a cut would lend some support to the market. Venezuela has said OPEC would cut at its July meeting if Iraqi output returned to a million barrels a day. The price of OPEC's basket of seven crudes rose to $27.86 a barrel on Wednesday from Tuesday's $27.51, the OPEC news agency said on Thursday, approaching the top of the cartel's target range of $22-$28. Iraq awarded its first post-war oil tender on Thursday to six companies for 10 million barrels held in storage but the prospect for future exports stayed uncertain with production was hampered by looting, sabotage and securities concerns. NYMEX July gasoline was called to open 0.75 cent to 1.00 cent lower after ending ACCESS trade down 1.11 cents at 92.30 cents a gallon. Nearby support is expected by chart watchers at 91.20 cents. Resistance is expected at 93.80 cents. NYMEX July heating oil futures were called to open 0.50 cent to 0.60 cent lower after ending ACCESS trade down 0.60 cent at 78.50 cents a gallon. Support is expected at 75.12 cents, with resistance due at 80.44 cents.