MARKET WATCHNYMEX oil futures prices climb on heating oil rally

Dec. 19, 2003
Oil futures prices rebounded to 9-month highs in New York on Thursday amid a rally in heating oil prices that was prompted by cold weather forecasts, particularly for the US Northeast.

OGJ editors
HOUSTON, Dec. 19 -- Oil futures prices rebounded to 9-month highs in New York on Thursday amid a rally in heating oil prices that was prompted by cold weather forecasts, particularly for the US Northeast.

The January contract for benchmark sweet, light crudes reached $33.90/bbl on the New York Mercantile Exchange Thursday before falling to $33.71/bbl, up 36¢ for the closing price. Traders said the day's high was the highest front month price since March.

Other energy prices
The NYMEX light crudes contract for February delivery also was by 36¢ to $33.75/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., increased by 35¢ to $33.73/bbl.

Heating oil for January rebounded by 2.24¢ to 96.42¢/gal Thursday on NYMEX. Unleaded gasoline for the same month continued to advance, up by 0.78¢ to 92.72¢/gal.

The January natural gas contract edged up 0.129¢ to $7.12/Mcf Thursday boosted by supportive weather forecasts and a strong oil market, said analysts Friday at Enerfax Daily.

UBS Securities LLC analyst Ronald J. Barone of New York said that gas futures have fluctuated considerably this week.

"Recent extreme fluctuations in the futures market have caught the attention of regulators and rule makers," Barone said. US Senate Judiciary Committee Chairman Orrin Hatch (R-Utah) has called for an investigation into the recent price spikes when Congress reconvenes in January.

The Federal Energy Regulatory Commission also has indicated that its market-monitoring unit will look into concerns over the possibility of fraudulent trading and market abuses.

"We are not convinced there was fraudulent activity going on," Barone said.

Other energy prices
In London, the February contact for North Sea Brent oil gained 21¢ to $30.80/bbl Thursday on the International Petroleum Exchange. Gas oil for January delivery held unchanged at $274/tonne. However, the January natural gas contract gained 2.17¢ to the equivalent of $6.02/Mcf on IPE.

Meanwhile, the dollar again declined against the European currencies Thursday. Reuters said the dollar has declined by around 15.5% against the euro this year and dipped to a record low of $1.2436/euro Thursday.

The average price for the Organization of Petroleum Exporting Countries' basket of seven benchmark crudes increased by 28¢ to $30.73/bbl Thursday.