By OGJ editors
HOUSTON, Apr. 26 -- Energy prices dipped Apr. 25 in expectation that the next report by the Energy Information Administration, to be released Apr. 27, will show another rise in US crude inventories.
That marked the end of the previous week's rally in which near-month futures prices for benchmark US light, sweet crudes rebounded by more than 11% (OGJ Online, Apr. 25, 2005).
Meanwhile, Geneva-based tanker-tracker Petrologistics said members of the Organization of Petroleum Exporting Countries are expected this month to increase production by 700,000 b/d to 30.4 million b/d. Petrologistics also increased its earlier estimate of OPEC's March production to 29.7 million b/d.
Saudi Arabian officials said they have boosted that country's crude production to 9.5 million b/d in recent weeks. Petrologistics said it expects Saudi production to increase by 600,000 b/d to 9.6 million b/d in April. It raised its previous estimate of Saudi Arabia's March production by 70,000 b/d to 9 million b/d.
Energy prices
The June contract for benchmark US crudes lost 82¢ to $54.57/bbl Apr. 25 on the New York Mercantile Exchange. The July contract was down by 63¢ to $55.91/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., fell by 82¢ to $53.58/bbl. Heating oil for May delivery declined by 2.7¢ to $1.52/gal on NYMEX, while gasoline for the same month slipped by 0.16¢ to remain virtually unchanged at $1.65/gal.
The May natural gas contract declined by 4.2¢ to $7.15/MMbtu "as traders focused on a late sell-off in crude oil despite a firmer physical [natural gas] market in the face of cold weather this week in the upper Midwest that should boost heating demand," said analysts at Enerfax Daily.
"Traders expect the cool weather this week to stir up heating demand and limit the downside [of natural gas futures prices], particularly with an extra 5,000 Mw of nuclear power generation off line this year compared [with] last year due to spring maintenance," they said.
In London, the June contract for North Sea Brent crude was down by 57¢ to $54.40/bbl on the International Petroleum Exchange.
The average price for OPEC's basket of seven benchmark crudes lost 44¢ to $50.17/bbl on Apr. 25.
