Sam Fletcher
Senior Writer
HOUSTON, Oct. 27 -- Energy prices fell Oct. 26 as traders locked in profits from a rally to a 3-week high for crude futures prices in the previous session on the New York market.
Energy prices across the board had soared after the US Energy Information Administration reported US crude inventories plunged by 3.3 million bbl to 332.3 million bbl during the week ended Oct. 20, with US oil imports down by a whopping 936,000 b/d to 9.5 million b/d during that period (OGJ Online, Oct. 25, 2006). But those gains were reduced by more than half in most cases during Oct. 26 trading.
"The market has shown what is clearly a lack of faith in the credibility of the Organization of Petroleum Exporting Countries' stated initiatives to cut supply, as some skepticism still exists over whether some of the smaller countries will carry through with plans. On a similar note, look for oil inventories to retrace the bullish figure announced [Oct. 25], which was caused by a weather-related temporary shutdown of the Louisiana Offshore Oil Port," said analysts in the Houston office of Raymond James & Associates Inc.
Energy prices
The December contract for benchmark US light, sweet crudes dropped $1.04 to $60.36/bbl. Oct. 26 on the New York Mercantile Exchange. The January contract lost $1.08 to $61.99/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., increased $1.26 to $60.37/bbl. Heating oil for November delivery fell 3.9¢ to $1.70/gal on NYMEX. Unleaded gasoline for the same month lost 2.86¢ to $1.56/gal.
The November natural gas contract dropped 19.6¢ to $7.50/MMbtu, ending a 2-day rally to a 12-week high on NYMEX, with record winter supplies now in US underground storage. On the spot market, natural gas at Henry Hub, La., gained 52¢ to $7.86/MMbtu.
In London, the December IPE contract for North Sea Brent crude lost $1.28 to $60.77/bbl. Then November gas oil contract fell by $5.25 to $543.50/tonne.
However, the average price of OPEC's basket of 11 benchmark crudes gained $1.16 to $56.12/bbl on Oct. 26.
Contact Sam Fletcher at [email protected].
