By the OGJ Online Staff
HOUSTON, Nov. 8 -- International energy futures prices rebounded Wednesday, outstripping much of the previous day's losses, as traders focused on "consistent" signals that the Organization of Petroleum Exporting Countries may cut its oil production quotas by 1.5 million b/d at the Nov. 14 meeting.
Many analysts earlier dismissed the possibility that OPEC members would again reduce production and risk the loss of market shares to non-OPEC producers.
However, Alvaro Silva Calderon, Venezuela's energy minister, Wednesday joined the growing chorus of OPEC ministers calling for a cut of 1.5 million b/d instead of the expected 1 million b/d.
Traders also were impressed by the unseasonable increase in US demand for cheaper gasoline that further reduced inventories of that refined product last week, analysts said. During Wednesday's trading sessions, that drawdown of US stocks of unleaded gasoline apparently outweighed bigger buildups of US crude and distillate inventories.
The December and January contracts for benchmark US sweet, light crudes both gained 17¢ to $20.09/bbl and $20.28/bbl, respectively, on the New York Mercantile Exchange. Both continued to advance in after-hours electronic trading to $20.19/bbl for the December position and $20.38/bbl for January, resulting in overall gains for the 2 days of trading.
Unleaded gasoline for December delivery jumped 0.71¢ to 54.63¢/gal on the NYMEX, building on Tuesday's gain. Home heating oil for the same month edged up 0.05¢ to 57.18¢/gal, regaining a little of its previous loss. However, the December natural gas contract continued to slip, dipping 1¢ to $2.87/Mcf.
In London, the December contract for North Sea Brent crude gained 26¢ to $19.33/bbl Wednesday on the International Petroleum Exchange, while the January contract was up 15¢ to $19.36/bbl. In early trading Thursday, the December Brent contract was up another 62¢ to $19.95/bbl on the IPE.
The December natural gas contact gained 7.8¢ to the equivalent of $3.36/bbl Wednesday on the IPE.
The average price for OPEC's basket of seven crudes gained 11¢ to $17.67/bbl Wednesday. That benchmark basket price has remained well below the group's targeted price range of $22-$28/bbl since Sept. 24.
