By the OGJ Online Staff
HOUSTON, Mar. 5�Energy futures prices rose on international markets in a new wave of optimism Friday, spurred in part by colder weather in the Northeastern US and renewed speculation about a possible reduction of oil production by the Organization of Petroleum Exporting Countries after its Mar. 16 meeting.
Crude prices have been erratic recently as traders reacted to often-conflicting signals from OPEC members and other producers.
�Saudi Oil Minister Ali al-Naimi has vowed to defend an average price of $25/bbl for the basket of crudes that the organization monitors, while Venezuela President Hugo Chavez has been lobbying to establish the $25/bbl basket price as a floor,� said Robert Morris at Salomon Smith Barney Inc. in his Monday report.
The average price for the OPEC basket has been running at a $4-$6/bbl discount to spot prices for benchmark US crudes.
Oil ministers from Saudi Arabia, Venezuela, and Mexico are scheduled to meet in Riyadh at the end of this week to review world market conditions and confer on whether an additional production cut is warranted now, Morris said.
The April contract for benchmark US light, sweet crude gained 22� to $27.84/bbl on the New York Mercantile Exchange on Friday, while the May contract was up 23� to $27.91/bbl.
Home heating oil for April delivery moved up 0.91� to 72.52�/gal, as unleaded gasoline for the same month rose 0.69� to 87.39�/gal. The April contract for natural gas increased 8.4� to $5.27/Mcf on the NYMEX.
In London, the April contract for North Sea Brent oil gained 15� to $26/bbl on the International Petroleum Exchange. Natural gas for the same month rose 2� to the equivalent of $3.44/Mcf on the IPE.
