Sam Fletcher
Senior Writer
HOUSTON, Dec. 8 -- Energy prices resumed their fall Tuesday as hundreds of protestors ended their 3-day siege of three oil pumping-station platforms in the Niger Delta region of Nigeria.
That came after the Royal Dutch/Shell Group, which operates two of the platforms, and CheveronTexaco Corp., operator of the third, agreed to talks centered on local labor issues. The protests, in which the three platforms were occupied by local residents, had shut in production totaling 120,000 b/d. It was not immediately known when production might resume.
Energy markets also turned bearish on the general assumption that a weekly report would reveal growth in US energy stocks. The Energy Information Administration reported early Wednesday that commercial US crude inventories increased by 600,000 bbl to 293.9 million bbl during the week ended Dec. 3, in the middle of the average range for that time of year.
US distillate stocks rose by 1.4 million bbl to 119.3 million bbl during the same period, with almost all of that gain in diesel fuel. However, distillate fuels remain just below the lower average range for the time of year. US gasoline stocks increased by 2.4 million bbl to 208.1 million bbl last week.
Energy prices
The January contract for benchmark US light, sweet crudes fell by $1.52 to $41.46/bbl Tuesday on the New York Mercantile Exchange, while the February position was down by $1.43 to $41.81/bbl. On the US spot market, West Texas Intermediate lost $1.52 to $42.47/bbl. Gasoline for January delivery plunged by 4.29¢ to $1.09/gal Tuesday on NYMEX. Heating oil for the same month was down by 2.61¢ to $1.22/gal. The January natural gas contract tumbled by 30.2¢ to $6.62/MMbtu.
In London, the January contract for North Sea Brent crude fell by $1.38 to $38.27/bbl Tuesday.
The average price for the Organization of Petroleum Exporting Countries' basket of seven benchmark crudes lost 68¢ to $34.21/bbl Tuesday.
Contact Sam Fletcher at [email protected]
