Sam Fletcher
Senior Writer
HOUSTON, Nov. 8 -- Energy prices generally rebounded Friday as traders protected their holdings against possible surprise fluctuations in supplies over the weekend.
Some analysts reiterated expectations that prices will continue a significant but gradual decrease across the board, interrupted by occasional short-term spikes, as lack of support from market fundamentals force more speculators out of the market.
However, the US Labor Department reported Friday greater-than-expected job growth during October, signaling a possible increase in economic growth that could fuel greater demand for oil and natural gas.
Meanwhile, the US weathered the presidential elections with no terrorist attack, prompting some to expect a reduction in the current "security premium" addition to crude prices. On the other hand, stepped-up US military action against insurgents in Fallujah, Iraq, raised concerns of possibly more disruptions of crude exports from that country.
Energy prices
The December contract for benchmark US light, sweet crudes increased by 79¢ to $49.61/bbl Friday on the New York Mercantile Exchange, while the January contact climbed by 78¢ to $49.62/bbl. On the US spot market, West Texas Intermediate crude at Cushing, Okla., gained 79¢ to $49.62/bbl. Gasoline for December delivery was up by 0.94¢ to $1.29/gal Friday on NYMEX. Heating oil for the same month inched up by 0.2¢ to $1.3741/gal. However, the December natural gas contract fell by 24.5¢ to $7.95/Mcf, with US gas storage at high levels going into the winter heating system.
In London, the December contract for North Sea Brent crude was unchanged Friday at $46.01/bbl on the International Petroleum Exchange.
The average price for the Organization of Petroleum Exporting Countries' basket of seven benchmark crudes fell by $1.97 to $38.56/bbl Friday. For the whole week, however, OPEC's average basket price was down by $3.31 to $42.20/bbl.
So far this year, OPEC's basket price has averaged $35.89/bbl, up from an average of $28.10/bbl for all of 2003.
Contact Sam Fletcher at [email protected]
