By OGJ editors
HOUSTON, Nov. 10 -- Energy futures prices rebounded in trading on the New York Mercantile Exchange Wednesday—one day after energy prices had plummeted.
Analysts said that the crude oil market had gotten overextended, and that Tuesday's trading session marked a major correction.
On Wednesday, prices bounced up again across the energy complex when the US Energy Information Administration reported that US heating oil inventories are well below normal levels for this time of year (OGJ Online, Nov. 10, 2004).
Energy prices
The December contract for benchmark light, sweet crudes climbed by $1.49 to $48.86/bbl Wednesday on NYMEX. The January crude contract rose by $1.35 to $48.92/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., was up by $1.49 to $48.87/bbl.
Gasoline for December delivery gained 5.13¢ to $1.29/gal Wednesday on NYMEX. Heating oil for the same month rose 6¢ to $1.40/gal. The December natural gas contract gained 21¢ to $7.68/Mcf.
Weather forecasts for an extended cold spell in the northeastern US "will probably bolster heating oil demand after a mild start to November last week kept many furnaces idle," analysts at Enferfax Daily said on Thursday.
In London, the December contract for North Sea Brent crude rose by $1.04 to $44.75/bbl on the International Petroleum Exchange.
The average price for the Organization of Petroelum Exporting Countries' basket of seven benchmark crudes lost 30¢ to $37.73/bbl Wednesday.
