By OGJ editors
HOUSTON, Mar. 29 -- Energy futures prices rebounded Friday as traders bought to cover outstanding sales contracts amid growing speculation that members of the Organization of Petroleum Exporting Countries meeting Wednesday in Vienna will postpone the 1 million b/d production cut approved in February to become effective Thursday.
But before the New York market closed, crude futures prices dropped to a 4-week low at one point as investment funds speculated that there will be no gasoline shortages in the US this summer.
Earlier last week, crude futures prices registered big losses on world markets amid growing convictions that OPEC will set aside its planned production cut. That price drop was encouraged by the US Energy Information Administration's report of a larger-than-expected rise in US commercial crude inventories during the week ended Mar. 19.
US crude inventories remain at dangerously low historic levels, however, with gasoline prices near record highs and no sign of retreating in the face of growing demand. Analysts say that any unplanned disruption of US crude supplies or refinery outputs would leave the US market short of gasoline this summer.
The May contract for benchmark US light, sweet crudes gained 22¢ to $35.73/bbl Friday on the New York Mercantile Exchange, while the June position advanced by 7¢ to $34.87/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., was up by 20¢ to $35.73/bbl Friday.
Gasoline for April delivery jumped by 2.41¢ to $1.129/gal Friday. Heating oil for the same month was up by 0.31¢ to 89.21¢/gal. The April natural gas contract increased by 5.9¢ to $5.40/Mcf on NYMEX.
In London, the May contract for North Sea Brent crude increased by 16¢ to $31.99/bbl on the International Petroleum Exchange. Gas oil for April delivery was unchanged at $282.50/tonne. The April natural gas contract dipped by 2.2¢ to the equivalent of $3.56/Mcf on IPE.
The average price for OPEC's basket of seven benchmark crudes declined by 36¢ to $31.57/bbl Friday.
