Sam Fletcher
Senior Writer
HOUSTON, Sept. 26 -- The front-month crude futures price rebounded above $61/bbl after briefly falling to $59.52/bbl in interday trading Sept. 25 on the New York market, but natural gas continued falling to its lowest price level in 3 years.
"Prices seem to be hovering around a $60 support level, at least for now. Crude has slid over 20% in only 2 months (though only moderately compared with natural gas)," said analysts in the Houston office of Raymond James & Associates Inc.
Traders generally expect the Organization of Petroleum Exporting Countries to take action to shore up crude prices if the futures market falls below $60/bbl for a sustained period. OPEC ministers did confer Sept. 25 but did not call an emergency meeting for possible action. OPEC's next meeting is scheduled for Dec. 14 in Nigeria. Saudi Arabia began reducing its production in April as world demand for crude started to slip.
Energy prices
After falling to a 10-month low last week, the November contract for benchmark US light, sweet crudes climbed 90¢ to $61.45/bbl Sept. 25 on the New York Mercantile Exchange. The December contract gained 79¢ to $62.33/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., was up by $1.35 to $61.46/bbl. Unleaded gasoline for October delivery rose by 2.89¢ to $1.50/gal on NYMEX. Heating oil for the same month increased by 0.92¢ to $1.66/gal. The October natural gas contract dropped 15.2¢ to $4.48/MMbtu, however.
In London, the November IPE contract for North Sea Brent crude increased by 39¢ to $60.80/bbl. But the October gas oil contract dropped $4.50 to $529.25/tone.
The average price for OPEC's basket of 11 benchmark crudes fell by $1.23 to $54.92/bbl on Sept. 25.
Contact Sam Fletcher at [email protected].
