By OGJ editors
HOUSTON, Oct. 9 -- Crude oil futures prices dropped below $60/bbl on Oct. 6, and analysts forecast prices are apt to continue dropping while traders await proof that oil exporting countries actually will take oil off the market as reported last week.
Oil prices have been volatile in recent trading sessions upon uncertainty generated by media reports that the Organization of Petroleum Exporting Countries has an informal agreement to cut production by 1 million b/d.
Various media cited anonymous sources within OPEC as saying the cartel would trim its daily production by 1 million b/d, probably at its meeting in December (OGJ Online, Oct. 5, 2006).
In response, OPEC said it is considering an emergency meeting, but that there is no informal agreement about production. Oil prices have declined since the front-month contract hit $77.03/bbl in mid-July on the New York Mercantile Exchange.
Energy prices
The November contract for benchmark US light, sweet crudes on NYMEX declined 27¢, settling at $59.76/bbl. The December contract dropped by 17¢ to $61.17/bbl.
On the US spot market, West Texas Intermediate at Cushing, Okla., dropped 27¢ to $59.77/bbl. Natural gas prices on Oct. 6 gained 12.9¢ to $6.427/MMbtu.
Unleaded gasoline for November delivery slipped by 1.23¢ to $1.5042/gal on NYMEX. Heating oil for the same month gained 0.2¢ to close at $1.6940/gal.
In London, the November IPE contract for North Sea Brent dropped by 17¢ to $59.83/bbl. The October gas contract declined by $8.50 to $528.25/tonne.
The average price for OPEC's basket of 11 benchmark crudes declined by 14¢ to $55.13/bbl.
