Sam Fletcher
Senior Writer
HOUSTON, Mar. 27 -- The May crude futures price climbed above $64/bbl Mar. 24 in the New York market, with traders looking ahead to summer driving and hurricane seasons and worrying about possible shortages of petroleum products.
Nigeria's oil ministry had previously indicated plans to resume production of 75% of its shut-in crude by Mar. 24 (OGJ Online, Mar. 9, 2006). However, Royal Dutch Shell PLC now says it will not resume production from the Niger Delta until that area is safe from attacks and kidnappings by militants. Officials report 630,000 b/d, or 26% of Nigeria's crude production, has been shut in by sabotage and threats of additional attacks and kidnappings. That includes 455,000 b/d shut in by Shell. Nigerian militants freed three foreign oil workers last week after 3 weeks of captivity. However, they have threatened more attacks.
Energy prices
The May contract for benchmark US sweet, light, crude gained 35¢ to $64.26/bbl Mar. 24 on the New York Mercantile Exchange. The June contract increased by 31¢ to $65.20/bbl. On the US spot market, West Texas Intermediate was up by 54¢ to $63.96/bbl. Gasoline for April delivery gained 0.71¢ to $1.82/gal on NYMEX. Heating oil for the same month increased by 0.6¢ to $1.79/gal.
The April natural gas contract slipped by 3.8¢ to $7.29/MMbtu on NYMEX, however, "halting a 3-day rally as traders finally focused on [US gas] inventories that are almost 67% above the 5-year average," said analysts at Enerfax Daily. Forecasters are calling for below-normal temperatures in the eastern third of the US through Apr. 6.
In London, the May IPE contract for North Sea Brent crude gained 24¢ to $63.51/bbl. Gas oil for April increased by $4.50 to $562.75/tonne.
The average price for the Organization of Petroleum Exporting Countries' basket of 11 benchmark crudes increased by 91¢ to $58.05/bbl on Mar. 24. So far this year, OPEC's basket price has averaged $57.50/bbl, up from an average $50.64/bbl for all of 2005.
Contact Sam Fletcher at [email protected].
