MARKET WATCHCrude oil, gasoline prices drop

July 31, 2006
Crude oil prices dipped by more than $1/bbl to less than $74/bbl on both New York and London markets July 28, and gasoline prices plunged by more than 6¢/gal on the New York Mercantile Exchange.

By OGJ editors
HOUSTON, July 31 -- Crude oil prices dipped by more than $1/bbl to less than $74/bbl on both New York and London markets July 28, and gasoline prices plunged by more than 6¢/gal on the New York Mercantile Exchange.

Analysts reported no obvious trigger for the downturn except for a sell-off in gasoline.

On the world news front, Israel agreed to a 48-hr suspension of air raids after nearly 3 weeks of fighting with Hezbollah in Lebanon. An Israeli air strike on July 30 killed more than 50 Lebanese, mostly children. The attack prompted US Sec. of State Condoleezza Rice to cut short her Middle East tour.

The fighting has created a jittery oil market because traders are concerned about possible oil supply disruptions from Iran, a backer of Hezbollah.

Energy prices
Benchmark US sweet, light crudes for September delivery tumbled $1.30/bbl to $73.24/bbl on NYMEX, while the October contract declined by $1.31 to $74.39/bbl.

Natural gas prices for September delivery rose 6.1¢ to close at $7.184/MMbtu.

Heating oil for August delivery dropped by 3.84¢ to $1.94/gal on NYMEX. Gasoline for the same month dove 6.25¢ to $2.33/gal.

In London, the September IPE contract for North Sea Brent crude fell $1.62 to $73.39/bbl. Gas oil for August dropped by $9.25 to $629/tonne.

The average price for the Organization of Petroleum Exporting Countries' basket of 11 benchmark crudes dropped 10¢ to $68.97/bbl.