Sam Fletcher
Senior Writer
HOUSTON, Feb. 20 -- Energy prices continued to climb Feb. 17, ahead of the long Presidents Day holiday weekend in the US, as Venezuelan President Hugo Chavez again threatened to cut off crude supplies if the US government were to "cross the line" in its relations with Venezuela.
Venezuela is the fifth largest oil exporter and supplies about 15% of US energy imports via Citgo Petroleum Corp., the Houston-based subsidiary of Petroleos de Venezuela SA. Venezuela recently expelled a US naval attaché accused of spying, and Washington sent home a Venezuelan diplomat. Last week, US Sec. of State Condoleezza Rice said the Bush administration wants to curb Chavez's influence with other Latin American countries.
Meanwhile, militants holding nine foreign hostages in southern Nigeria claimed Feb 20 they attacked another oil facility and blew up a military vessel (OGJ Online, Feb. 20, 2006).
Energy prices
The March contract for benchmark US light, sweet crudes rebounded to $60/bbl in intraday trading Feb. 17 on the New York Mercantile Exchange before closing at $59.88/bbl, up by $1.42 for the day. The April contract gained $1.16 to $61.29/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., was up by $1.42 to $59.89/bbl. Gasoline for March delivery bumped up by 9.02¢ to $1.50/gal on NYMEX. Heating oil for the same month increased by 3.21¢ to $1.66/gal. The March natural gas contract rose by 4.8¢ to $7.18/MMbtu.
In London, the April contract for North Sea Brent crude increased by $1.10 to $59.89/bbl on the International Petroleum Exchange. Gas oil for March gained $11.25 to $527.25/tonne.
The average price for the Organization of Petroleum Exporting Countries' basket of 11 benchmark crudes was up by 75¢ to $54.37/bbl on Feb. 17.
Contact Sam Fletcher at [email protected].
