By OGJ editors
HOUSTON, June 23 -- Energy futures prices rebounded in trading in New York and London markets Tuesday.
Supply concerns were fueled by a deadlock in a strike by Norwegian oil workers. Norway's oil production on Tuesday was down by 370,000 b/d, a 12.5% decline from normal production, with the prospect of another 100,000 b/d likely to come off by the end of Wednesday.
In addition, traders expressed US supply concerns upon the news Tuesday that a ConocoPhillips refinery in Lake Charles, La., was forced to delay the restart of a shut gasoline unit.
The shutdown of even one refinery is critical given a tight US gasoline inventory amid peak demand during summer driving season, traders said.
Meanwhile, Iraq resumed crude production from its northern Kirkuk oil field after repairing an export pipeline sabotaged 3 weeks ago.
Energy prices
The July contract for benchmark US sweet, light crudes gained 48¢ to $38.11/bbl Tuesday on the New York Mercantile Exchange, while the August position also rose by 48¢ to $38.25/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., also advanced by 50¢ to $38.13/bbl.
Gasoline for July delivery rose by 3.74¢ to $1.1989/gal on NYMEX. Heating oil for the same month also closed higher, gaining 2.38¢ to $1.017/gal. The July natural gas contract advanced by 7.3¢ to $6.412/Mcf "on a higher crude oil market and some short-covering ahead of this week's storage report," said analysts Wednesday at Enerfax Daily.
"Despite last week's gains, the downside still seems more likely now with temperatures in key demand areas milder this week than last," they added.
Meanwhile, outages and operational problems at nuclear power plants in Arizona, Arkansas, and California lifted spot natural gas prices last week, they said. Most of those power plant problems have been resolved.
In London, the August contract for North Sea Brent crude climbed by 48¢ to $35.61/bbl Tuesday on the International Petroleum Exchange. Gas oil for July delivery was down by $3.75 to $313.50/tonne. The July natural gas contract slipped by &3cent; to the equivalent of $3.82/Mcf on IPE.
The average price for the Organization of Petroleum Exporting Countries' basket of seven benchmark crudes retreated by 29¢ to $34.36/bbl Tuesday.
