Sam Fletcher
Senior Writer
HOUSTON, Apr. 28 -- Energy prices plunged Apr. 27 as US crude inventories rebounded with a large weekly build and President George W. Bush called on oil producers around the world to increase production.
However, in his Apr. 27 speech to the National Small Business Conference in Washington, DC, Bush promised no immediate relief from high energy prices that have "been years in the making" (OGJ Online, Apr. 27, 2005).
His Apr. 25 meeting with Saudi Arabia's Saudi Crown Prince Abdullah in Crawford, Tex., also produced little hope for immediate change. Following that meeting, the president and the crown prince issued a joint statement pledging continued cooperation to make sure oil supplies from Saudi Arabia "are available and secure," to prevent the spread of nuclear weapons, to combat terrorism, to increase training of Saudi military officers in the US, and to increase the number of Saudi students traveling and studying in the US and the number of US citizens working and studying in the Kingdom.
Meanwhile, the Energy Information Administration said Apr. 27 that commercial US stocks of crude jumped by 5.5 million bbl to 324.4 million bbl during the week ended Apr. 22, after falling by 1.8 million bbl the previous week. However, US gasoline inventories slipped by 300,000 bbl to 211.3 million bbl, in the latest reported period, while distillate fuel stocks fell by 1.4 million bbl to 102.6 million bbl (OGJ Online, Apr. 27, 2005).
Energy prices
The June contract for benchmark US sweet, light crudes plunged by $2.59 to $51.61/bbl Apr. 27 on the New York Mercantile Exchange, while the July contract lost $2.46 to $53.19/bbl.. On the US spot market, West Texas Intermediate at Cushing, Okla., was down by $2.59 to $51.62/bbl. Gasoline for May delivery dropped 8.32¢ to $1.54/gal on NYMEX, while heating oil for the same month fell by 3.39¢ to $1.47/gal.
The expiring May natural gas contract plummeted by 37.2¢ to $6.75/MMbtu on NYMEX, after the "very bearish" EIA report on US crude stocks, said analysts at Enerfax Daily. On Apr. 28, EIA reported 73 bcf of natural gas was injected into US underground storage in the week ended Apr. 22. That compared with injections of 50 bcf the previous week and 78 bcf in the same period a year ago. US gas storage now stands at 1.4 tcf, up by 272 bcf from last year at this time and 319 bcf above the 5-year average.
In London, the June contract for North Sea Brent crude lost $1.85 to $52.29/bbl on the International Petroleum Exchange.
The average price for the Organization of Petroleum Exporting Countries' basket of seven benchmark crudes declined by $1.02 to $48.88/bbl.
Contact Sam Fletcher at [email protected]
