By OGJ editors
HOUSTON, Jan. 29 -- Crude oil futures prices closed moderately higher in New York Tuesday as traders awaited President George W. Bush's State of the Union speech and weekly inventory statistics Wednesday.
The American Petroleum Institute and the Department of Energy release their reports Wednesday for the week ended Jan. 24. Analysts expect the data to show a decline in US crude and distillate stocks with a build in gasoline inventories.
Traders wait for the effect of Venezuela's general strike on US oil inventory numbers.
Futures prices
The March contract for benchmark US light, sweet crudes rose by 38¢ to $32.67/bbl Tuesday on the New York Mercantile Exchange, while the April position gained 43¢ to $31.82/bbl. Heating oil for March delivery slipped by 0.39¢ to 93.04¢/gal. Unleaded gasoline for the same month climbed by 2.57¢ to 92.72¢/gal.
The March natural gas contract gained 4.8¢ to $5.44/Mcf Tuesday as forecasts called for cold but not frigid temperatures in February. The February natural gas contract expired Wednesday.
"Look for the natural gas market to drop into the $5.20(/Mcf range) as it sells February and buys March on expiration. Expiration will bring more volatility," said Enerfax Daily on Wednesday.
Taking a long-term view, Friedman, Billings, Ramsey & Co. Inc. of Arlington, Va., sees sustained natural gas price strength.
"Based on our assessment of tight natural gas supply-demand fundamentals through 2005, we are raising our 2003 price forecast to $4.40/Mcf and establishing 2004 and 2005 price forecast of $4/Mcf and $3.70/Mcf, respectively. Our price forecast assumes moderate economic growth, a decline in crude prices to $22/bbl, and normal weather," FBR analysts said in a Jan. 28 research note.
In London, the March contract for North Sea Brent crude settled higher, adding 41¢ to $30.27/bbl on the International Petroleum Exchange. The natural gas contract climbed slightly, up 0.05¢ to the equivalent of $3.27/Mcf on IPE.
The average price for OPEC's basket of seven benchmark crudes lost 33¢ Tuesday to $29.83/bbl.
