By OGJ editors
HOUSTON, Sept. 20 -- Crude futures prices climbed Friday to a high for the week as the market remained jittery about supply concerns from the recently passed Hurricane Ivan and the approaching Tropical Storm Jeanne.
Initial reports indicated Hurricane Ivan caused minimal damage to oil and natural gas facilities in the Gulf of Mexico.
But traders and analysts remain concerned about possible storm-related supply disruptions, warning that the approaching storm might delay US crude oil imports, noting that the inventory already is at a 6-month low.
Some traders said this year's unusually strong hurricane season could make it very difficult to build heating oil stocks before the winter season. Unofficial forecasts are pointing to an extended and severe winter, which would increase heating oil demand.
Meanwhile, oil markets were buoyed Monday by reports that OAO Yukos is suspending oil exports to the Chinese National Petroleum Corp. because Yukos cannot afford to pay the railroad transportation charges.
Energy prices
The October contract for benchmark US light, sweet crudes rose by $1.71, or 3.9%, to $45.59/bbl Friday on the New York Mercantile Exchange, while the November contract climbed by $1.67 to $45.59/bbl.
On the US spot market, West Texas Intermediate at Cushing, Okla., was up by $1.70 to $45.60/bbl.
Refined product prices also settled higher. Heating oil for October delivery soared by 3.09¢ to $1.26/gal Friday on NYMEX. Gasoline for the same month increased by 4.4¢ to $1.27/gal. The October natural gas contract advanced by 38.9¢ to $5.108/Mcf on NYMEX.
The natural gas market rose 12% for the week, and prices surpassed $5/Mcf for the first time in nearly a month.
"Traders began to focus on the large production outage caused by Hurricane Ivan and less on the overall glut in natural gas storage," said analysts Monday at Enerfax Daily. "The uncertainty over the extent of the damage spooked the market after it had taken Ivan in stride earlier in the week."
In London, the November contract for North Sea Brent crude was up by $1.70 to $42.45/bbl Friday on the International Petroleum Exchange. Gas oil for October delivery gained $12.25 to $393.00/tonne. The October natural gas contract was down by 10¢ to the equivalent of $5.91/Mcf on IPE.
The average price for the Organization of Petroleum Exporting Countries' basket of seven benchmark crudes rose by $1.06 to $39.50/bbl Friday.
