By OGJ editors
HOUSTON, Mar. 2 -- Crude oil prices dropped slightly in trading on the New York Mercantile Exchange on Mar. 1 yet remained near $52/bbl. Cold weather in the US Northeast triggered another rise in heating oil prices.
Meanwhile, the Organization of Petroleum Exporting Countries seems to be softening its stance to cut production quotas.
Indonesia, Kuwait, Qatar, and Venezuela all have said they believe existing quotas should be maintained when OPEC ministers meet Mar. 16 in Iran.
A second equity research firm has boosted its oil price expectations. Analysts at Friedman Billings Ramsey & Co. Inc. of Arlington, Va., raised their 2005 crude oil price forecast for West Texas Intermediate to $44/bbl from $39/bbl and its 2006 forecast to $40/bbl from $35/bbl.
FBR's revised forecast came on the heels of a similar move by Lehman Bros. (OGJ Online, Mar. 1, 2005).
Jacques Rousseau at FBR said, "With crude oil prices above $50/bbl, the $20/bbl average from the fourth quarter of 2001 appears to be a very distant memory."
He expects crude oil prices will remain high in coming years because of "the combination of above-average demand (enhanced by continued government reserves building), limited non-OPEC supply growth, below-average inventory levels, and a weak [US] dollar."
Energy prices
The NYMEX April contract for benchmark US light, sweet crudes dropped by 7¢ to $51.68/bbl on Mar. 1. The May contract dropped by 2¢ to $52.31/bbl.
The WTI spot price at Cushing, Okla., declined by 7¢ to $51.69/bbl. NYMEX gasoline for April delivery lost 0.91¢ to $1.40/gal. The April heating oil contract was up by 1.1¢ at $1.465/gal.
The April natural gas contract dropped 5¢ to $6.68/MMbtu on NYMEX.
In London, the April contract for North Sea Brent crude increased by 5¢ to $50.11/bbl on the International Petroleum Exchange.
The average price for OPEC's basket of seven benchmark crudes was down by 9¢ at $46.17/bbl on Mar. 1.
