Sam Fletcher
Senior Writer
HOUSTON, Mar. 4 -- Energy futures prices fell Wednesday as traders reacted to what they saw as unexpectedly bearish government and industry reports of a build in US crude inventories during the week ended Feb. 27.
The American Petroleum Institute reported late Wednesday that US crude stocks increased by 1.6 million bbl to 276.1 million bbl during that period. Distillate inventories fell by more than 2 million bbl to 113.9 million bbl, while gasoline inventories were down by 1.8 million bbl to 200.9 million bbl, API said.
The US Energy Information Administration earlier reported commercial US inventories of crude increased by 2 million bbl to 275.8 million bbl last week (OGJ Online, Mar. 3, 2004). US gasoline stocks fell by 1.4 million bbl to 202 million bbl, and distillate fuel inventories inched lower by 100,000 bbl to 111.3 million bbl, with diesel fuel falling slightly more than heating oil stocks increased, EIA said.
Energy prices
Gasoline for April delivery plunged by 4.71¢ to $1.0957/gal Wednesday on the New York Mercantile Exchange, while heating oil for the same month fell 3.6¢ to 89.85¢/gal.
The April contract for benchmark sweet, light crudes dropped 86¢ to $35.80/bbl on NYMEX. The May position fell by 94¢ to $35.05/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., plummeted by 95¢ to $35.73/bbl.
The April natural gas contract fell 19¢ to $5.38/Mcf Wednesday on NYMEX, "undermined by a steep sell-off in crude oil and a soft physical market in the face of mild weather across much of the nation this week," said analysts Thursday at Enerfax Daily.
EIA reported early Thursday the withdrawal of 96 bcf of natural gas from US underground storage during the week ended Feb. 27. That was down from withdrawals of 164 bcf last week and 176 bcf a year ago. It also was below the consensus of Wall Street analysts for the latest period.
US gas storage now stands at 1.17 tcf, up by 333 bcf from year ago levels but 149 bcf below the 5-year average.
In London, the April contract for North Sea Brent crude fell by 92¢ to $32.23/bbl Wednesday on the International Petroleum Exchange. Gas oil for March delivery lost $8.50 to $274.75/tonne. The April natural gas contract slipped by 2.2¢ to the equivalent of $3.75/Mcf on IPE.
The average price for the Organization of Petroleum Exporting Countries' basket of seven benchmark crudes lost 66¢ to $31.82/bbl Wednesday.
Contact Sam Fletcher at [email protected]
