Market watch: Oil prices fall in New York, London

Nov. 27, 2001
Energy futures prices weakened in trading on the New York Mercantile Exchange and the International Petroleum Exchange Monday. Traders said that there was still confusion in the market regarding the outcome of the Organization of Petroleum Exporting Countries' discussions with non-OPEC producers regarding proposed production cuts.

By the OGJ Online Staff

HOUSTON, Nov. 27 -- Energy futures prices weakened in trading on the New York Mercantile Exchange Monday.

The January contract for light, sweet crude, the US benchmark, slipped 27¢ to rest at $18.69/bbl, while the February contract fell 31¢ to $18.88/bbl. In after-hours electronic access trading, the January contract was getting $18.93/bbl.

Refined petroleum products also closed lower on the NYMEX, with December home heating oil losing 1.25¢ to finish at 52.17¢/gal, while unleaded gasoline for the same month slipped by 0.56¢ to settle at 52.17¢/gal.

NYMEX natural gas for December delivery pulled back by 11.7¢ to end at $2.696/Mcf.

Traders said that there was still confusion in the market regarding the outcome of the Organization of Petroleum Exporting Countries' discussions with non-OPEC producers regarding proposed production cuts.

The uncertainty led to more traders selling their positions when the market opened after a 2-day break on Thursday and Friday.

Meanwhile, in London Monday, Russia's refusal to make more than a token 50,000 b/d crude output cut was behind the second day of active selling on the International Petroleum Exchange, after Friday's steep fall in prices.

OPEC officials have warned that prices could lose several dollars per barrel in value if steps are not taken to reduce available crude supply.

On Monday, IPE January Brent futures settled at $18.36/bbl, down by 92¢ from the previous close. The day's high was $18.90 and the low $18.10.

Also on the IPE, the December natural gas contract fell 3¢ to close at the equivalent of $3.53/Mcf.

OPEC's basket of seven crudes stood at $17.35/bbl Monday, compared with $17.71 the previous day.