By the OGJ Online Staff
HOUSTON, Feb. 27 -- Traders bid up energy futures prices on international markets Tuesday in anticipation of another bullish report of diminished US petroleum inventories.
They weren't disappointed. After the close of trading in New York, the American Petroleum Institute reported US distillate fuel oil stocks, including heating oil, dropped by 2.5 million bbl to a total 136.7 million bbl last week. Inventories of unleaded gasoline also fell, by 2.1 million bbl to 216.1 million bbl, with US refineries working at 89.2% of capacity, up from 88.5% the previous week.
Lower inventories of refined products despite increased production translates into an increase in demand. However, US crude inventories increased by 2.5 million bbl to a total of 318.7 million bbl.
Meanwhile, United Nations officials reported Wednesday that Iraq's oil exports under the oil-for-aid program dipped to 10.3 million bbl last week from 10.6 million bbl previously. Revenue from those sales rose to $195 million from $189 million previously because of higher prices. The current 6-month phase of the program extends to May 29.
The April contract for benchmark US light, sweet crude jumped 93¢ to $21.41/bbl Tuesday on the New York Mercantile Exchange. The May contract also gained 90¢ to $21.59/bbl. However, both retreated in after-hours electronic trading to $21.35/bbl and $21.47/bbl, respectively.
In a market where price changes usually are measured by fractions of a cent, heating oil for March delivery soared by 2.67¢ to 55.18¢/gal in regular trading Tuesday on NYMEX. Unleaded gasoline for the same month shot up 1.09¢ to 57.32¢/gal. The March contract for natural gas also gained, 8.1¢ to $2.37/Mcf.
In London, futures prices for North Sea Brent crude staged the sharpest rally in weeks on the International Petroleum Exchange. The April Brent contract began the day below $20/bbl but was up 88¢ to $20.86/bbl by closing after trading at $19.85-21.06/bbl. The expiring March natural gas contract gained 3.8¢ to the equivalent of $2.38/Mcf on IPE, while the April contract was up 2.2¢ to the equivalent $2.34/Mcf.
The average price for the Organization of Petroleum Exporting Countries' basket of seven benchmark crudes gained 79¢ to $19.45/bbl Tuesday.
