By OGJ editors
HOUSTON, Nov. 25 -- Energy futures prices for every commodity except natural gas rallied Friday across world markets as traders were in a buying mood to reverse previous sales.
The continued threat of military action against Iraq, a threatened strike in Venezuela, and technical strength all contributed to boosting crude prices, traders added.
During the weekend, Venezuela Energy and Mines Minister Rafael Ramirez said he doubts that oil industry workers will strike.
"The government is not going to permit the oil industry to come to a halt. I have the perception that the labor sector, which is the majority, is not going to yield," Ramirez said "But more than that, there is a consensus in the management payroll that a strike in PDVSA would be an attempt against the health of the country's most important company," he told reporters concerning state oil company Petroleos de Venezuela SA.
The buying spree gained momentum going into the weekend because US President George W. Bush and Russian President Vladimir Putin issued a joint statement Friday warning Iraq to cooperate with United Nations' weapons inspectors.
Meanwhile, Algerian Energy and Mines Minister Chakib Khelil said the Organization of Petroleum Exporting Countries will take measures at its Dec. 12 meeting in Vienna to support oil prices in a range of $22-28/bbl.
He acknowledged overproduction was happening in the oil market but said it was not creating problems yet. But if the winter in the Northern Hemisphere proves to be mild, then that could require another cut in OPEC output, Khelil said.
The January contract for benchmark US light, sweet crudes gained 41¢ to $26.76/bbl Friday on the New York Mercantile Exchange, while the February position increased 45¢ to $26.65/bbl.
Unleaded gasoline for December delivery soared 2.45¢ to 74.87¢/gal on NYMEX. Heating oil for the same month was up 1.71¢ to 76.64¢/gal.
Natural gas for December delivery slipped by 9.1¢ to $4.26/Mcf.
In London, the January contract for North Sea Brent oil gained 38¢ to $25.21/bbl Friday on the International Petroleum Exchange. The day's high was $25.55/bbl and the low was $24.75/bbl. However, the price for the December gas contract continued its earlier decline, down 3.7¢ to the equivalent of $3.42/Mcf on IPE.
The average price for OPEC's basket of seven benchmark crudes increased by 27¢ to $25.08/bbl Friday. The OPEC Secretariat said the price of the basket so far this year has averaged $23.91/bbl.
For the month of October, the basket price averaged $27.32/bbl compared with $27.38/bbl in September, and $25.99/bbl in August.
