MARKET WATCHColder weather pushes oil price above $51/bbl on NYMEX

Feb. 23, 2005
Spurred by colder weather and concerns about violence in the Middle East, crude prices shot above $51/bbl as the New York Mercantile Exchange resuming trading Feb. 22 after being closed the previous day for US Presidents' Day holiday.

By OGJ editors

HOUSTON, Feb. 23 -- Spurred by colder weather and concerns about violence in the Middle East, crude prices shot above $51/bbl as the New York Mercantile Exchange resuming trading Feb. 22 after being closed the previous day for US Presidents' Day holiday.

The expiring March contract for benchmark US light, sweet crudes shot up by $2.80 to a closing price of $51.15/bbl on NYMEX, having traded as high as $51.40/bbl during the day. It was the highest price for a near-month contract in 3 months and the highest settlement this year.

The April contract escalated by $2.41 to $51.42/bbl on NYMEX, while other contracts for May-July also advanced above $51/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., gained $2.80 to $51.16/bbl.

Heating oil for March delivery jumped by 9.09¢ to $1.44/gal Feb. 22 on NYMEX. Gasoline for the same month was up by 4.55¢ to $1.31/gal. The March natural gas contract climbed by 19.5¢ to $6.10/MMbtu, pulled up by the spike in crude prices. However, analysts at Enerfax Daily reported, "Concerns about a growing [US natural gas] storage surplus and sluggish heating demand limited the upside."

In London, the April contract for North Sea Brent crude increased by $1.89 to $48.62/bbl on the International Petroleum Exchange.

The average price for the Organization of Petroleum Exporting Countries' basket of seven benchmark crudes was up by $1.16 to $44.28/bbl on Feb. 22.