Sam Fletcher
Senior Writer
HOUSTON, Mar.2 -- Gasoline futures prices continued to ratchet up Monday on the New York Mercantile Exchange, pulling other energy commodities along, fueled by fears of possible future shortages with US gasoline stocks at a 30-year low and demand already building ahead of the peak summer driving season.
Although commercial US inventories of crude and petroleum products are tight, some analysts claim the recent fly-up of energy prices isn't supported by market fundamentals. Some expect to see a downward correction of market prices later this week.
Energy prices
Gasoline for April delivery jumped by 2.12¢ to $1.1466/gal Monday on NYMEX, while heating oil for the same month gained 0.6¢ to 94.79¢/gal. Some traders are concerned that current emphasis on gasoline supply might lead to lower-than-normal production of heating oil during the rest of the winter season.
The April contract for benchmark US sweet, light crudes escalated by 70¢ to $36.86/bbl Monday on NYMEX, while the May contract shot up by 94¢ to $36.18/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., increased by 15¢ to $36.33/bbl.
The April natural gas contract advanced by 13.4¢ to $5.55/Mcf on NYMEX, "as early selling on a weak cash [spot] market and mild weather forecasts this week [were] offset by a strong rally in crude oil futures," said analysts Tuesday at Enerfax Daily. "The market came back from a weak opening on the strength in crude and gasoline futures."
In London, the April contract for North Sea Brent crude shot up by $1.11 to $33.34/bbl Monday on the International Petroleum Exchange. Gas oil for March delivery increased by $4.50 to $279.75/tonne. The April natural gas contract gained 6.3¢ to the equivalent of $3.83/Mcf on IPE.
The average price for the Organization of Petroleum Exporting Countries' basket of seven benchmark crudes rose by 69¢ to $31.82/bbl Monday.
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