Sam Fletcher
Senior Writer
HOUSTON, May 24 -- Crude prices rose May 23 as traders were forced to cover excess open sales on the futures market, but gasoline prices fell with the end of a strike at five French refineries and speculation that US demand may be curbed by high pump prices.
Meanwhile, Venezuelan President Hugo Chávez threatened early this week to cut diplomatic ties with the US unless it extradites Luis Posada Carriles, a Cuban, to Venezuela to face terrorism charges. Posada was arrested last week in Miami on charges of entering the US illegally.
He is wanted in Venezuela for allegedly masterminding the 1976 bombing of a Cuban jetliner over Venezuela, killing 73 people, including more than a dozen young Venezuelans. Both Venezuela and Cuba are demanding his extradition to Venezuela.
In a national address May 22, Chávez accused the US of harboring a "terrorist." If the US doesn't hand over Posada within 60 days, Chávez said he would break ties with Washington. Venezuela is a major exporter of oil and petroleum products to the US and has a large refining and marketing operation here.
Posada also is accused of an assassination attempt on Cuban President Fidel Castro in Panama in 2000 and in a series of bombings in Cuba in 1997. However, he has repeatedly denied participating in the aircraft bombing.
Energy prices
The new front-month July contract for benchmark US sweet, light crudes jumped by 51¢ to $49.16/bbl May 23 on the New York Mercantile Exchange, while the August contract gained 35¢ to $50.05/bbl. On the US spot market, West Texas Intermediate for June delivery at Cushing, Okla., shot up by $1.81 to $48.62/bbl. Gasoline for June delivery fell by 2.06¢ to $1.40/gal on NYMEX. Heating oil for the same month slipped by 0.08¢ to $1.367/gal. The June natural gas contract increased by 6.4¢ to $6.41/MMbtu.
In London, the July contract for North Sea Brent crude gained 34¢ to $48.37/bbl on the International Petroleum Institute.
The average price for the Organization of Petroleum Exporting Countries' basket of seven benchmark crudes was up by 23¢ to $45.50/bbl on May 23.
Contact Sam Fletcher at [email protected]