By OGJ editors
HOUSTON, Feb. 28 -- Energy prices fell Feb. 27 in New York, wiping out most of the gains from Feb. 24 when two suicide bombers were killed in an unsuccessful attack on the heavily guarded Abqaiq production and processing center in eastern Saudi Arabia.
In a Feb. 27 shootout in Riyadh, Saudi security forces killed five more men suspected of involvement in that attack. There were reports that at least one more suspect was arrested elsewhere in the capital (OGJ Online, Feb. 28, 2006).
However, traders apparently shrugged off the escalating violence in the Middle East and placed their confidence in the evident surplus of fuel supplies for the remainder of the Northern Hemisphere heating season.
The April contract for benchmark US sweet, light crudes fell by $1.91 to $61/bbl Feb. 27 on the New York Mercantile Exchange. The May contract dropped $1.79 to $62.35/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., lost $1.51 to $61.01/bbl. Heating oil for March delivery declined by 4.41¢ to $1.68/gal on NYMEX. Gasoline for the same month slipped by 2.56¢ to $1.53/gal. The April natural gas contract fell by 52.4¢ to $6.79/MMbtu on NYMEX because of mild weather and falling crude prices.
In London, the April IPE contract for North Sea Brent crude dropped $1.61 to $60.99/bbl. Gas oil for March fell by $9.50 to $531.25/tonne.
However, the average price for the Organization of Petroleum Exporting Countries' basket of 11 benchmark crudes was up by 14¢ to $56.38/bbl on Feb. 27.