Market watch: Oil price rise fueled by OPEC's restraint, recovering US economy

March 19, 2002
The Organization of Petroleum Exporting Countries' show of solidarity in the group's most recent meeting to maintain oil production quotas drove up oil futures prices Tuesday. Also, signs of a recovering US economy—such as consumer spending and manufacturing output—helped to firm crude oil and products prices.

By the OGJ Online Staff

HOUSTON, Mar. 19 -- The Organization of Petroleum Exporting Countries' show of solidarity in the group's most recent meeting to maintain oil production quotas drove oil futures prices up Tuesday. Also, signs of a recovering US economy—such as consumer spending and manufacturing output—helped to firm crude oil and products prices.

On the New York Mercantile Exchange Tuesday, the April contract for benchmark US light, sweet crude rose 60¢ to $25.11/bbl, while the May contract rose to $25.44/bbl, up 59¢.

In after-hours electronic trading, the May and April contracts both lost 5¢, to $25.06/bbl and $25.39/bbl, respectively.

Refined products also rallied for April delivery, with heating oil rising 1.72¢ on NYMEX to 66.48¢/gal. Unleaded gasoline for April delivery gained 2.46¢ to 83.36¢/gal. The April natural gas contract jumped 22.9¢ to $3.305/Mcf.

In London, the April contract for North Sea Brent crude oil continued to rally for the second day on the International Petroleum Exchange, settling above the $25/bbl mark. IPE April Brent futures settled up 52¢ to $25.07/bbl. The day's high was 25.20/bbl, and the low was $24.16/bbl. Meanwhile, the April natural gas contract lost 3.5¢ to the equivalent of $2.21/Mcf.

The price of the OPEC marker basket of seven crudes was $23.18/bbl Monday vs. $22.85/bbl the previous Friday.