MARKET WATCHCrude prices increase with gasoline supply worries

April 29, 2005
Energy prices generally increased Apr. 28 among continued concerns over possible tight supplies of gasoline this summer.

By OGJ editors

HOUSTON, Apr. 29 -- Energy prices generally increased Apr. 28 among continued concerns over possible tight supplies of gasoline this summer.

The June contract for benchmark US light, sweet crudes increased by 16¢ to $51.77/bbl on the New York Mercantile Exchange, indicating still strong market support for oil prices above $50/bbl. The July contract gained 6¢ to $53.25/bbl. On the US spot market, West Texas Intermediate was up by 16¢ to $51.78/bbl. Heating oil for May delivery gained 1.47¢ to $1.49/gal. Gasoline for the same month inched up by 0.71¢ to $1.55/gal.

However, the new near-month June contract for natural gas lost 5.2¢ to $6.75/MMbtu on NYMEX, "lower for the fourth consecutive session this week after failing to follow crude oil [in] a late session rally," said analysts at Enerfax Daily. Traders in the natural gas futures market "barely reacted" to the Apr. 28 report by the Energy Information Administration that 73 bcf of natural gas was injected into US underground storage in the week ended Apr. 22, "which was in line with expectations," analysts said.

In London, the June contract for North Sea Brent crude was up by 19¢ to $52.48/bbl on the International Petroleum Exchange.

The average price of the Organization of Petroleum Exporting Countries' basket of seven benchmark crudes, however lost 85¢ to $48.03/bbl on Apr. 28.