By OGJ editors
HOUSTON, May 18 -- Led by the gasoline market's renewed concerns of possible summer fuel shortages, energy prices rebounded May 17, generally wiping out losses from the previous session.
Prices were pushed higher as several analysts pointed out that increased crude supplies can't make up for the limited refining capacity to produce petroleum products such as gasoline.
At a conference sponsored by the Center for Strategic & International Studies in Washington, Saudi Arabian Oil Minister Ali I. al-Naimi said the continued build of crude inventories by the US and other major consuming countries proved that additional production by members of the Organization of Petroleum Exporting Countries is not the answer to high energy prices. "It's the wrong kind of crude. Refinery bottlenecks are the problem," he said.
Energy prices
The June contract for benchmark US light, sweet crudes jumped by 36¢ to $48.97/bbl May 17 on the New York Mercantile Exchange. The July contract escalated by 50¢ to $50.67/bbl. US spot market prices for West Texas Intermediate at Cushing, Okla., were not available. Gasoline for June delivery jumped by 3¢ to $1.44/gal on NYMEX. Heating oil for the same month increased by 2.36¢ to $1.37/gal.
The June natural gas contract gained 3¢ to $6.48/MMbtu, as early selling on mild weather "was offset by a modest rebound in crude oil prices," said analysts at Enerfax Daily.
In London, the July contract for North Sea Brent crude increased by 25¢ to $49.34/bbl on the International Petroleum Exchange.
The average price for OPEC's basket of seven benchmark crudes was up by 13¢ to $45.60/bbl.
