MARKET WATCHEnergy futures prices are mixed

Aug. 19, 2005
Energy prices were mixed but little changed Aug. 18, after plummeting in the previous session as speculators took profits amid signals that high prices are decreasing demand.

By OGJ editors

HOUSTON, Aug. 19 -- Energy prices were mixed but little changed Aug. 18, after plummeting in the previous session as speculators took profits amid signals that high prices are decreasing demand.

However, Goldman Sachs Group Inc. hiked its New York Mercantile Exchange crude oil price forecast to $68/bbl average in 2006. That compared with the company's earlier forecast of $58/bbl.

Goldman Sachs expects that NYMEX oil prices will hover around an average of $60/bbl for years to come.

Meanwhile, Venezuela's state-run news agency reported that the Amuay oil refinery, the country's largest, would be back to full production capacity within 48 hours. The refinery cut its capacity to 150,000 b/d from 410,000 b/d because of a brief fire caused by a lighting strike in that facility (OGJ Online, Aug. 18, 2005).

Energy prices
The September contract for benchmark US light, sweet crude fell to $62.25/bbl during intraday trading Aug. 18 on NYMEX before rebounding late in the session to close at $63.27/bbl, up by 2¢ for the day. The October contract slipped by 8¢ to $63.77/bbl.

On the US spot market, West Texas Intermediate at Cushing, Okla., edged up by 2¢ to $63.28/bbl.

Gasoline for September delivery fell by 2.81¢ to $1.86/gal on NYMEX. However, heating oil for the same month recovered 0.66¢ to $1.79/gal. The September natural gas contract plunged by 47.7¢ to $8.93/MMbtu upon milder weather forecasts and anticipated reduced US demand for air conditioning.

In London, the October contract for North Sea Brent crude declined by 16¢ to $62.40/bbl on the International Petroleum Exchange, after hitting a record $66.85/bbl on Aug. 15. Gas oil for September delivery lost $7.50 to $568.25/tonne.

The average price for the Organization of Petroleum Exporting Countries' basket of 11 benchmark crudes fell by $1.20 to $56.51/bbl on Aug. 18.