By OGJ editors
HOUSTON, Dec. 9 -- Energy futures prices spiked Monday after cold weather dumped record snowfalls over the weekend on parts of the Northwest US, the world's biggest market for heating oil.
Heating oil for January delivery escalated by 4.18¢ to 90.54¢/gal Monday on the New York Stock Exchange. The alternative natural gas for the same month jumped by 76.7¢ to $6.90/Mcf.
The January contract for benchmark US sweet, light crudes gained $1.37 to $32.10/bbl Monday on NYMEX, while the February contract advanced by $1.36 to $32/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., increased by 85¢ to $31.58/bbl. Unleaded gasoline for December was up by 2.21¢ to 87.34¢/gal.
In London, the January contract for North Sea Brent oil gained $1.24 to $29.98/bbl on the International Petroleum Exchange. Gas oil for December delivery gained $11.50 to $267/tonne. However, the January natural gas contract fell by 3.9¢ to the equivalent of $5.91/Mcf.
The average price for the Organization of Petroleum Exporting Countries' basket of seven benchmark crudes gained 78¢ to $29.47/bbl on Friday, again surpassing the group's price target of $22-28/bbl.
Meanwhile, Chakib Khelil, Algeria's minister of energy, said in an interview published in the December issue of the Paris-based monthly Arabies, that Iraq might require several years to regain its pre-war level of oil production. "From here to there world oil demand will increase, by at least a million b/d," he said.
Algeria has requested an increase in its production quota. Khelil said OPEC ministers had to take into account the fact that his country would attain a production capacity of 1.5 million b/d by 2005, and 2 million b/d in 2010.
