(Adds Iran not planning to cut oil exports, updates prices)
By Maryelle Demongeot
SINGAPORE, May 14 (Reuters) - Oil was little changed below
$126 on Wednesday, with traders awaiting an expected rebound in
weekly U.S. distillate stocks and still on edge over the
previous day's report that Iran was considering a proposal to
cut output.
U.S. light crude for June delivery <CLc1> was unchanged at
$125.80 a barrel by 0530 GMT. It surged to a seventh
consecutive record high on Tuesday, hitting $126.98 a barrel
before profit-taking pared the day's gains.
London Brent crude <LCOc1> was up 19 cents at $124.29.
"The upward trend is still alive. The news about Iran is
creating uncertainties and should keep crude oil prices
buoyant," said Shuji Sugata, manager at Mitsubishi Corp Futures
and Securities Ltd in Tokyo.
Oil's surge on Tuesday came after Iranian President Mahmoud
Ahmadinejad said a proposal for OPEC's second biggest producer
to cut crude output was under review, Iran's semi-official Fars
News Agency said.
But a senior Iranian Oil Ministry official told Reuters on
Wednesday that Iran was exporting oil as usual and had no plans
to cut crude exports.
"There is no plan to cut exports and we keep our promises
(to clients) ... and we export as usual," said Hojjatollah
Ghanimifard, executive director of international affairs at the
National Iranian Oil Company (NIOC). []
Iran's production topped 4.2 million barrels per day (bpd)
in March, nearly 5 percent of global supply and its highest
since the 1979 Islamic revolution.
The supply threat added to a global market already uneasy
over supplies of distillates such as heating oil and diesel
fuel. U.S. heating oil futures <HOc1> settled on Tuesday at a
record $3.6989 a gallon, driving the entire oil complex higher.
"We have to watch the outcome of U.S. oil inventory data to
determine the near-term trend as both crude and oil products
stocks are expected to rise," Sugata said.
European middle distillate stocks fell sharply in April to
361.28 million barrels, down 1.4 percent from March and 7.2
percent lower than a year ago, data from industry monitor
Euroilstock showed on Tuesday. []
Traders were awaiting the latest U.S. weekly data for more
direction, after an unexpected fall in distillates stocks last
week left them at 105.7 million barrels, the lower half of the
normal range for this time of the year.
"Distillates are clearly driving the market and U.S.
distillate inventories will have to be watched this week. But
large investment flows are also driving the market," said Marc
Lansonneur, Societe Generale's head of commodities derivatives
in Asia.
Analysts expect distillates stocks to have risen by an
average 800,000 barrels last week, according to a Reuters poll.
Gasoline stocks are seen unchanged and crude oil stocks could
rise by 1.8 million barrels, their fourth increase in a row.
[]
The U.S. Energy Information Administration will release its
inventory report for the week to May 9 on Wednesday at 10:30
a.m. EDT (1430 GMT).
(Additional reporting by Chikafumi Hodo in Tokyo)
