By OGJ editors
HOUSTON, Apr. 2 -- Oil futures prices slumped Thursday after US Energy Sec. Spencer Abraham said the government was considering waiving the requirements of specially blended gasoline in New York and California.
Traders took Abraham's comments as an indication that the administration of President George W. Bush was taking the request for clean-air restriction waivers more seriously.
But later Thursday, the US Environmental Protection Agency and the US Department of Energy clarified that no such action is imminent. They said waiver requests from California and New York were undergoing normal review.
OPEC comments
UAE Minister of Petroleum and Mineral Resources Obaid bin Saif Al-Nasseri Thursday blamed political and economic factors as well as speculation for high oil prices, adding that the Organization of Petroleum Exporting Countries will review the world oil market during a meeting May 22 while on the sidelines of the International Energy Forum in Amsterdam as well as during an extraordinary conference meeting June 3 in Beirut.
Meanwhile, Saudi Arabia's ambassador office in Washington, DC, has told reporters that Saudi Arabia will not allow any shortages in the oil market, and that the Kingdom is monitoring the market closely.
Energy prices
The May contract for benchmark US light, sweet crudes lost $1.49 to $34.27/bbl Thursday on the New York Mercantile Exchange. The June position dropped by $1.33 to $33.75/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., declined by $1.50 to $34.28/bbl.
Gasoline for April delivery plunged by 5.91¢ to $1.0759/gal Thursday on NYMEX. Heating oil for the same month was down by 4.84¢ to 84.72¢/gal.
The May natural gas contract lost 16.8¢ to $5.77/Mcf Thursday. "Thursday's low-range close sets the stage for a steady to lower opening this morning. If May extends this week's rally, a test of monthly resistance crossing at $6.042 is possible later this spring, said analysts Friday at Enerfax Daily.
In London, the May contract for North Sea Brent oil fell by 70¢ to $30.79/bbl Thursday on the International Petroleum Exchange. Gas oil for May delivery lost $2.00 to $269/tonne. However, the May natural gas contract inched up by 3¢ to the equivalent of $3.57/Mcf on IPE.
The average price for OPEC's basket of seven benchmark crudes declined by 21¢ to the equivalent of $31.49/bbl Wednesday.
