By the OGJ Online Staff
HOUSTON, July 3 -- Energy futures prices declined Monday in anticipation of added US inventories and reduced Independence Day demand, analysts said.
The July 4 holiday usually marks one of the high points in US summer driving. But this year it falls in the middle of the week, which some say may reduce traffic.
Moreover, the American Petroleum Institute is scheduled to release its weekly report on US inventories of oil and petroleum products after markets close Tuesday. Traders expect that report will show those stocks increased again last week.
On top of that, the US gave up efforts to persuade UN officials to tighten the arms embargo against Iraq. Instead, US officials agreed to extend the current oil-for-food program indefinitely. That should move Iraq to resume its oil exports, analysts said.
Meanwhile, members of the Organization of Petroleum Exporting Countries, meeting in Vienna today, are not expected to increase production again this year.
The August contract for benchmark US light, sweet crudes dropped 30¢ to $25.97/bbl Monday on the New York Mercantile Exchange. The September contract lost 26¢ to $25.83/bbl.
Gasoline for August delivery plunged 2.08¢ to 71.48¢/gal, while home heating oil for the same month declined 0.75¢ to 71.08¢/gal. However, the August contract for natural gas inched up 2.1¢ to $3.12/Mcf.
In London, North Sea Brent crude prices slipped back below $26/bbl as the rally on the International Petroleum exchange ran out of steam. The August contract for Brent closed at $25.64/bbl, down 44¢ for the day after trading in a range of $25.10-$26.42/bbl Monday.
The August natural gas contract lost 4.6¢ to the equivalent of $2.47/Mcf on the IPE.
The average price for OPEC's basket of seven crudes inched up 6¢ to $24.50/bbl.
