Sam Fletcher
Senior Writer
HOUSTON, Feb. 11 -- Energy prices surged upwards on Feb. 10 as the Paris-based International Energy Agency increased its forecast for 2005 oil demand growth by 80,000 b/d to 1.52 million b/d, for a total of 84 million b/d.
IPE also reported that second quarter demand for crude from the Organization of Petroleum Exporting Countries will likely exceed supply for the first time in more than 2 years. In its latest monthly report, IEA revised its projected "call on OPEC crude and stock change" upwards by 100,000 b/d for 2004 and by 300,000 b/d for 2005, averaging 28.2 million b/d and 28.3 million b/d respectively.
Energy prices
The March contract for benchmark US light, sweet crudes jumped by $1.64 to $47.10/bbl on the New York Mercantile Exchange, while the April contract gained $1.61 to $47.69/bbl. On the US spot market, West Texas Intermediate was up by $1.64 to $47.11/bbl. Gasoline for March delivery escalated by 5.75¢ to $1.29/gal on NYMEX. Heating oil for the same month rose by 5.71¢ to $1.32/gal.
However, the March natural gas contract dipped by 0.5¢ to $6.16/MMbtu, "caught between a strong rally in crude oil and still high storage levels" for natural gas, said analysts at Enerfax Daily. They quoted Earth Satellite Corp. as forecasting colder weather in the US through the end of March, with the lowest temperatures "in the Northern Plains and on Canada's prairies."
In London, the March contract for North Sea Brent crude increased by $1.35 to $44.48/bbl on the International Petroleum Exchange.
The average price for OPEC's basket of seven benchmark crudes was up by 60¢ to $40.54/bbl on Feb. 10.
Contact Sam Fletcher at [email protected]
