Sam Fletcher
Senior Writer
HOUSTON, Apr. 13 -- Energy prices plunged again Apr. 12, wiping out the previous day's small rebound, as Paris-based International Energy Agency for the first time in many months lowered its predicted growth in world demand for crude.
IEA reduced its monthly estimate of global oil demand by a miniscule 50,000 b/d to an average 84.27 million b/d for 2005, claiming oil demand growth in China is declining.
Meanwhile, the US Energy Information Administration reported Apr. 13 that commercial US stocks of crude escalated by 3.6 million bbl to 320.7 million bbl during the week ended Apr. 8.
Rather than falling for the sixth consecutive week as analysts previously projected, US gasoline inventories increased by 800,000 bbl to 213.1 million bbl during the same period. Stocks of distillate fuel inched up by 100,000 bbl to 104 million bbl, said EIA officials.
US imports of crude declined by 27,000 b/d to an average 9.9 million b/d during the week ended Apr. 8. Input of crude into US refineries fell by 288,000 b/d to an average 15.2 million b/d in the same period, with refineries down to 91% of operating capacity. Nonetheless, gasoline production increased to 8.7 million b/d while distillate fuel production declined slightly to 4.1 million b/d.
Energy prices
The May contract for benchmark US light, sweet crudes fell by $1.85 to $51.86/bbl Apr. 12, the lowest closing price since Mar. 1 for the front-month contract on the New York Mercantile Exchange. Heating oil for May delivery lost 2.18¢ to $1.47/gal. Gasoline for the same month was down by 1.6¢ to $1.53/gal.
The May natural gas contract plunged by 21.5¢ to $7.09/MMbtu, "following a tumbling crude oil market as supply concerns eased, after being boosted early by utilities buying natural gas to store for some use and by a cash [natural gas spot] market supported by cooler Northeast temperatures," said analysts at Enerfax Daily.
In London, the May contract for North Sea Brent crude fell by $1.23 to $51.98/bbl on the International Petroleum Exchange.
However, the average price for the Organization of Petroleum Exporting Countries' basket of seven benchmark crudes increased by 29¢ to $49.43/bbl on Apr. 12.
Contact Sam Fletcher at [email protected].
