By OGJ editors
HOUSTON, Feb. 8 -- Natural gas futures slipped below $6/MMbtu in a general retreat of energy prices on Feb. 7, after several ministers of the Organization of Petroleum Exporting Countries commented that crude prices are excessive and that they have no plans to reduce supply.
Meanwhile, officials in Saudi Arabia said they plan to hike Saudi oil production capacity to 12.5 million b/d within 4 years, from 9 million b/d currently, and might go to 15 million b/d if required.
Energy prices
The March contract for benchmark US sweet, light crudes plunged by $1.20 to $45.28/bbl Feb. 7 on the New York Mercantile Exchange. The April contract declined 99¢ to $45.96/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., was down by $1.20 to $45.29/bbl.
Gasoline for March delivery lost 4.83¢ to $1.21/gal on NYMEX. Heating oil for the same month dropped 4.36¢ to $1.23/gal. The March natural gas contract fell to $5.97/MMbtu, down by 12.7¢ for the day, pressured by softer spot market prices, falling crude prices, and forecasts for mild weather this week in the Northeastern US, said analysts at Enerfax Daily.
In London, the March contract for North Sea Brent crude lost 85¢ to $43.04/bbl.
The average price for OPEC's basket of seven benchmark crudes dropped 75¢ to $39.98/bbl on Feb. 7.
