By OGJ editors
HOUSTON, Oct. 30 -- Futures prices for energy commodities dropped across world markets Tuesday, but analysts believe the market is due for a rebound because meteorologists have predicted colder temperatures this winter than last year. For example, temperatures in the US Northeast already are colder now than at this time last year.
After trading ended Tuesday, the American Petroleum Institute released its weekly inventory report saying US crude stocks increased 1.75 million bbl to 289.4 million bbl for the week ended Oct. 25. It was a third consecutive rise in crude oil inventories, but stocks still trail last year's inventories by 15.3 million bbl for the same week in 2001.
Distillate stock inventories, including heating oil, slipped by 2.4 million bbl while gasoline supplies were down 1.5 million bbl, API said, adding that US refineries continue to operate below capacity. On Monday, a ChevronTexaco Corp. spokesman confirmed the company's 240,000 bbl refinery in Richmond, Calif., was back up after being shut down early last week because the refinery's cogeneration unit failed.
The December contract for benchmark US light, sweet crudes dropped by 43¢ to $26.86/bbl Tuesday on the New York Mercantile Exchange, while the January contract slipped by 32¢ to $26.53/bbl. November heating oil lost 1.53¢ to 71.55¢/gal.
Unleaded gasoline for November delivery plunged 3.03¢ to 82.27¢/gal Tuesday.
The November natural gas contract dropped 5¢ Tuesday to $4.13/Mcf, but traders said a firm physical market should limit the downside. US gas stocks of 3.161 tcf are 2% above last year and 219 bcf above the 5-year average, the EIA storage report showed last week. Storage hovers near record levels for this time of year.
In London, futures prices for December North Sea Brent oil dipped 37¢ to $25.31 on the International Petroleum Exchange.
The November natural gas contract was off 9¢ to the equivalent of $3.42/Mcf on IPE.
The average price for the Organization of Petroleum Exporting Countries' basket of seven crudes dropped 33¢ to $25.35/bbl Tuesday.
