Sam Fletcher
Senior Writer
HOUSTON, Jan.11 -- Energy prices continued to decline Jan. 10 as spring-like weather persisted across much of the US, but the front-month crude futures price remained above $63/bbl in New York.
Global demand for oil is expected to increase by 1.6 million b/d in 2006 and by 1.9 million b/d in 2007, the US Energy Information Administrations said Jan. 10. Supplies from producers outside of the Organization of Petroleum Exporting Countries are forecast to increase by 900,000 b/d this year and by 1.7 million b/d in 2007. Demand for natural gas is expected to remain flat this year, increasing by 1.3% in 2007. Electricity demand is expected to increase by 1.3% in 2006 and by 1.6% in 2007, EIA said.
EIA said OPEC production of crude oil increased to 30.16 million b/d in December from 30.01 million b/d in November, with 1.75 million b/d of the December total coming from Iraq, up 50,000 b/d from the month before.
On Jan. 11, EIA reported commercial US crude inventories dropped by 2.9 million bbl to 318.7 million bbl during the week ended Jan. 6. Gasoline stocks jumped by 4.5 million bbl to 208.8 million bbl in the same period. Distillate fuel inventories shot up by 4.9 million bbl to 133.8 million bbl, with a large increase in diesel fuel inventories added to an increase in heating oil stocks.
Imports of crude into the US declined by 188,000 b/d to 9.9 million b/d. However, input of crude into US refineries increased by 19,000 b/d to nearly 15.3 million b/d in the latest period, with refineries operating at 89.8% of capacity. Gasoline production dropped from the previous week, averaging over 8.6 million b/d, while distillate fuel production increased slightly, averaging over 4.2 million b/d.
Energy prices
The February contract for benchmark US light, sweet crudes lost 13¢ to $63.37/bbl Jan. 10 on the New York Mercantile Exchange. The March contract dropped 25¢ to $64.10/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., was down by 13¢ to $63.38/bbl. Gasoline for February delivery fell by 3.06¢ to $1.74/gal. Heating oil for the same month lost 2.98¢, also to $1.74/gal. The February natural gas contract dipped by 2.4¢ to $9.34/MMbtu on NYMEX.
In London, the February contract for North Sea Brent crude declined by 9¢ to $61.92/bbl on the International Petroleum Exchange. Gas oil for January lost $7 to $522.25/tonne.
The average price for OPEC's basket of 11 benchmark crudes was down by 18¢ to $57.11/bbl on Jan. 10.
Contact Sam Fletcher at [email protected].
