By OGJ editors
HOUSTON, Apr. 6 -- Energy futures prices dipped Monday on the New York Mercantile Exchange as the seemingly deteriorating military situation in Iraq dimmed prospects of a recovery of that country's oil production.
However, the retreat of prices was checked by low US stocks of crude and petroleum products and by the 1million b/d reduction in the production quota for the other members of the Organization of Petroleum Exporting Countries, effective this month.
The May and June contracts for benchmark US sweet, light crudes dipped by 1¢ each to $34.38/bbl and $33.86/bbl, respectively, Monday on NYMEX. On the US spot market, West Texas Intermediate at Cushing, Okla., was unchanged at $34.38/bbl.
Gasoline for May delivery fell by 1.37¢ to $1.0585/gal Monday on NYMEX. Heating oil for the same month slipped by 0.15¢ to 85.38¢/gal. The May natural gas contract was down by 0.8¢ to $5.80/Mcf "in thin trading amid forecasts for cool temperatures in the Northeast and Midwest," said analysts Tuesday at Enerfax Daily.
In London, however, the May contract for North Sea Brent crude jumped by 48¢ to $30.69/bbl on the International Petroleum Exchange. That market appears fairly steady at $30.50-31/bbl, brokers said. But fundamentals are so finely balanced that any unexpected disruption of crude supply or refinery output could cause serious problems, so speculators are expected to start bidding up energy prices again.
Gas oil for April delivery lost 50¢ to $268.25/tonne Monday on IPE. However, the May natural gas contract soared by 13¢ to the equivalent of $3.63/Mcf.
The average price for OPEC's basket of seven benchmark crudes lost 28¢ to $29.90/bbl Monday.
