By OGJ editors
HOUSTON, Feb. 3 -- The near-month crude contract price fell to a 3-week low Feb. 2 as traders took comfort that US crude inventories remain in the upper half of the average range for this time of year.
Although crude prices rebounded in January to approach $50/bbl for the first time in 8 weeks, the Jan. 30 Iraqi election and simultaneous meeting of ministers of the Organization of Petroleum Exporting Countries provided no new stimulus to world oil markets. "Total petroleum inventories have increased in recent months but remain moderate by historical standards. Natural gas prices also moved up slightly," said analysts at Raymond James & Associates Inc., St. Petersburg, Fla.
Energy prices
The March contract for benchmark US sweet, light crudes lost 43¢ to $46.69/bbl Feb. 2 on the New York Mercantile Exchange, the lowest closing price since Jan. 12 when the February contract finished at $46.37/bbl. The April contract dropped 42¢ to $47.15/bbl Feb. 2. On the US spot market, West Texas Intermediate at Cushing, Okla., was down by 43¢ to $46.70/bbl. Gasoline for March delivery lost 2.1¢ to $1.29/gal on NYMEX. Heating oil for the same month declined by 1.69¢ to $1.30/gal.
However, the March natural gas contract increased by 6¢ to $6.38/MMbtu on NYMEX as traders covered excess sales positions ahead of the weekly government report on US gas storage. On Feb. 3, the Energy Information Administration said 188 bcf of gas was withdrawn from US underground storage in the week ended Jan. 28. That was below the previous consensus of Wall Street analysts and down from draws of 230 bcf the previous week and 236 bcf during the same period a year ago.
US gas storage now stands at 2.1 tcf, up by 188 bcf from a year ago and 273 bcf above the 5-year average.
In London, the March contract for North Sea Brent crude fell by 81¢ to $44.01/bbl on the International Petroleum Exchange.
The average price for OPEC's basket of seven benchmark crudes was down by 66¢ to $40.62/bbl on Feb. 2.
