By OGJ editors
HOUSTON, Mar. 27 -- Energy futures prices rebounded Tuesday in anticipation of yet another bullish report on US petroleum inventories.
The May contract for benchmark US sweet, light crudes gained 37¢ to $25.36/bbl on the New York Mercantile Exchange, while the June position was up 32¢ to $25.49/bbl. Both continued rising to $25.76/bbl and $25.84/bbl, respectively, in after-hours electronic trading, following a report by the American Petroleum Institute that US oil stocks fell by 6.2 million bbl to 315.5 million bbl last week.
Oil imports into the US declined by 1.1 million bbl to 7.4 million bbl during that same period, indicating that cutbacks in oil production and exports by the Organization of Exporting Countries and key non-OPEC producers apparently are taking effect in world markets.
API also reported declines in US inventories of refined products, indicating increased demand in a recovering economy. US distillate stocks, including heating oil, fell more than 2 million bbl to 123.6 million bbl last week. US inventories of gasoline dropped 1.8 million bbl to 153.9 million bbl, with US refineries operating at 86.3% capacity, up from 86.2% the previous week.
Heating oil for April delivery jumped 1.52¢ to 65.68¢/gal during the regular NYMEX trading session Tuesday. Unleaded gasoline for the same month gained 1.27¢ to 80.08¢/gal. The April natural gas contract inched up 1.5¢ to $3.47/Mcf.
In London, futures prices for North Sea Brent crude firmed on the International Petroleum Exchange. Brokers reported the market is likely to stabilize on either side of $25/bbl, pending any change in market fundamentals.
The May Brent contract rose 18¢ to $25.31/bbl Tuesday. The April natural gas contract also gained 0.4¢ to the equivalent of $2.13/Mcf on the IPE.
The average price for OPEC's basket of seven crudes was up 15¢ to $23.68/bbl Tuesday.
