By OGJ editors
HOUSTON, Nov. 13 -- Prices for the energy complex declined Nov. 10 on the New York futures market. The retreat came after crude oil prices jumped above $61/bbl on Nov. 9—the front month's highest level in 2 weeks.
Analysts said the price drops stemmed in part from the International Energy Agency's monthly report in which it trimmed its 2006 global oil demand growth to 1.1%, or an average of 84.5 million b/d of oil, from its previous forecast of 1.2% oil demand growth.
EIA's 2007 demand growth forecast held steady at 1.7%.
Oil inventories in Organization for Economic Cooperation and Development countries was high, EIA said. The OECD inventories total was at 55 days of forward demand cover. Analysts said this was the highest rate in the third quarter since 1991.
Energy prices
The December contract for benchmark US sweet, light crudes fell by $1.57 to $59.59/bbl Nov. 10 on the New York Mercantile Exchange. The January contract lost $1.52 to $61.54/bbl. On the US spot market, West Texas Intermediate was down by $1.57 to $59.60/bbl.
Unleaded gasoline for December delivery dropped 3.83¢ to $1.5627/gal. Heating oil for the same month declined 4.90¢ to $1.6966/gal.
The December natural gas contract dropped by 16.1¢ to $7.794/MMbtu on NYMEX. On the US spot market, natural gas at Henry Hub, La., dropped by 18¢ to $7.20/MMbtu.
In London, the December IPE contract for North Sea Brent fell by $1.61 to $59.71/bbl. The November gas oil contract held steady at $542.75/tonne.
The Organization of Petroleum Exporting Countries reported on Nov. 6 that the monthly average price for OPEC's basket of 11 benchmark crudes was $55.16/bbl. The basket price for Nov. 10 was not available.