By OGJ editors
HOUSTON, Mar. 25 -- Energy futures prices continued to seesaw, retreating Wednesday in the wake of a US Energy Information Administration report of a 7.5 million bbl jump in commercial US crude inventories to 288.6 million bbl during the week ended Mar. 19 (OGJ Online, Mar. 24, 2004).
That unexpectedly large increase in US crude stocks apparently distracted traders from previous concerns over what action, if any, members of the Organization of Petroleum Exporting Countries will take at their Mar. 31 meeting in Vienna. Some OPEC ministers have said they're willing to discuss postponement of a planned 1 million b/d cut in the group's production quota to 23.5 million b/d effective Apr. 1 (OGJ Online, Oct. 23, 2004). Other ministers have said that reduction, approved at their last meeting in February, should stand.
OPEC's final decision about that proposed cutback will be a major factor for world oil markets. However, analysts said futures market prices are likely to rebound as traders' concerns about tight gasoline supplies in the US market reemerge.
The April contract for benchmark US light, sweet crudes lost 44¢ to $37.01/bbl Wednesday on the New York Mercantile Exchange, while the June position retreated by 36¢ to $36.29/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., dipped by 12¢ to $37.58/bbl.
Heating oil for April delivery was down by 1.25¢ to 92.07¢/gal Wednesday on NYMEX. Gasoline for the same month slipped by 0.04¢ to $1.1464/gal. The April natural gas contract lost 10.1¢ to $5.43/Mcf.
In London, the May contract for North Sea Brent crude declined by 30¢ to $33.01/bbl Wednesday on the International Petroleum Exchange. Gas oil for April delivery lost $2.25 to $285.50/tonne. However, the April natural gas contract gained 1.7¢ to the equivalent of $3.65/Mcf on IPE.
The average price for OPEC's basket of seven benchmark crudes inched up by 2¢ to $32.85/bbl Wednesday.