MARKET WATCH
Low natural gas draw undercuts energy prices
By OGJ editors
HOUSTON, Feb. 18 -- Energy prices fell Feb. 17, with the report of a smaller-than-expected withdrawal of natural gas from US underground storage and a statement by Algeria's energy minister that the Organization of Petroleum Exporting Countries is unlikely to cut production any time soon.
The Energy Information Administration reported Feb. 17 the withdrawal of 98 bcf of natural gas from US underground storage during the week ended Feb. 11. US storage now stands at 1.8 tcf and "appears on course to exit the winter at around 1.3 tcf, assuming normal temperatures for the remaining 5 weeks of the traditional winter withdrawal season," said Robert S. Morris, Banc of America Securities LLC, New York (OGJ Online, Feb. 17, 2005).
Energy prices
The March contract for benchmark US light, sweet crudes fell by 79¢ to $47.54/bbl on the New York Mercantile Exchange. The April contract was down by 64¢ to $48.22/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., lost 79¢ to $47.55/bbl. Gasoline for March delivery plunged by 4.63¢ to $1.24/gal. Heating oil for the same month dropped 2.92¢ to $1.31/gal.
The March natural gas contract plummeted by 18.6¢ to $5.92/MMbtu, the "lowest level in 5 weeks" for a near-month contract, said analysts at Enerfax Daily.
In London, the April contract for North Sea Brent crude lost 33¢ to $45.82/bbl on the International Petroleum Exchange.
However, the average price for OPEC's basket of seven benchmark crudes gained 69¢ to $42.56/bbl on Feb. 17.
