By OGJ editors
HOUSTON, Apr. 17 -- Oil futures prices continued to ascend Tuesday, drawing strength from the reinstatement Monday of Venezuelan President Hugo Chávez, who was temporarily forced from office last Friday under military pressure. With news of Chávez's return, traders and analysts expect Venezuela's restraint on oil production to remain unchanged.
Following the close of markets Tuesday, the American Petroleum Institute released its weekly inventory report, which showed that US crude oil stocks had fallen by 7.3 million bbl last week. Analysts were expecting this news, once it is confirmed by the US Department of Energy's report on oil stocks Wednesday, to fuel a further surge in oil futures prices.
"Oil prices (although very volatile) remain relatively strong, buoyed by recent unrest in Venezuela, continuing tensions in the Middle East, mounting signs of an economic revival, and good output restraint by oil producing countries," noted analysts with Jefferies & Co. Inc., New York City.
The May contract for crude on the New York Mercantile Exchange Tuesday rose 18¢ to $24.75/bbl, while the June contract climbed by 21¢ to $25.01/bbl. Both positions continued to climb in after-hours electronic trading, to $25.36/bbl and $25.65/bbl, respectively.
Refined products continued to make gains Tuesday, with heating oil for May delivery adding 44¢ to 63.78¢/gal during the regular NYMEX session. Unleaded gasoline for the same month climbed by 66¢ to 78.63¢/gal. The May natural gas contract, meanwhile, pulled back Tuesday, falling 13.6¢ to $3.29/Mcf.
In London Tuesday, North Sea Brent prices rose on the International Petroleum Exchange. The June Brent contract gained 52¢ to $24.58/bbl.
The May natural gas contract lost 3¢ to the equivalent of $1.72/Mcf on the IPE.
The average price for the Organization of Petroleum Exporting Countries marker basket of seven crudes rose 57¢ to $23.53/bbl Tuesday.
