OGJ editors
HOUSTON, Dec. 16 -- Crude oil futures prices soared in trading on New York and London markets Dec. 15, triggered by the weekly inventory report from the US Energy Information Administration.
The report estimated that the nation's crude stocks declined by 100,000 bbl last week to 293.8 million bbl. Meanwhile, heating oil stocks declined by 100,000 bbl to 49.9 million bbl, down 12% from the same time a year ago.
Traders said that crude prices rose mainly on technical factors, adding that the market had expected news of inventory declines and may have exaggerated its reaction to the mildly bullish report.
Energy prices
The January contract for benchmark US light, sweet crudes increased by $2.37 to $44.19/bbl, and the February position advanced by $2.24 to $44.69/bbl. On the US spot market, West Texas Intermediate gained $2.37 to $44.20/bbl.
Heating oil for January delivery jumped by 8.39¢ to $1.38/gal on the New York Mercantile Exchange, gasoline for the same month was up by 4.77¢ to $1.16/gal.
The January natural gas contract dropped 9.7¢ to $7.236/MMbtu, "pressured by a soft cash market, milder late-week forecasts and profit taking" despite a sharp spike in crude oil prices, said analysts Dec. 16 at Enerfax Daily.
"There was clearly a disconnect between petroleum and natural gas prices," they noted.
In London, the January contract for North Sea Brent crude rose by $2.97 to $42.22/bbl Dec. 15 on the International Petroleum Exchange.
The average price for the Organization of Petroleum Exporting Countries basket of seven benchmark crudes gained $1.75 to $36.47/bbl Dec. 15.
