Market watch: Energy prices rise modestly
By OGJ editors
HOUSTON, June 17 -- Energy futures prices rose modestly Friday as traders covered their short positions before the weekend, analysts said.
A second 2-day informal meeting of representatives from the Organization of Petroleum Exporting Countries and producers outside OPEC is scheduled in Vienna starting Thursday. The talks are aimed at providing an opportunity for the two sides to exchange views on oil market developments.
Meanwhile, the OPEC meeting is slated for June 26 in Vienna. Abdullah bin Hamad Al-Attiyah, Qatar's minister of energy and industry, expects no change in OPEC output quotas.
"There should be unanimity on extending the current agreement on the production ceiling until the end of the year," he said, adding that Qatar "opposed any production increase." He also said OPEC members are working "to ensure stability in the oil market."
The July contact for benchmark US sweet, light crudes rose 30¢ to $25.94/bbl on the New York Mercantile Exchange. The August contract was up 27¢ to $26.14/bbl. Both contracts rose in after-hours electronic trading to $26.23/bbl and $26.36/bbl, respectively.
Unleaded gasoline for July delivery rose 0.85¢ to 78.70¢/gal during regular trading Friday on NYMEX. Heating oil for the same month rose by 0.37¢ to 66.40¢/gal. The July natural gas contract also gained 13.1¢ to $3.34/Mcf.
In London, the August contract for North Sea Brent was up by 27¢ to $24.99/bbl on the International Petroleum Exchange. However, the August natural gas contract dropped 14¢ to the equivalent of $1.80/Mcf on IPE.
Brokers said Brent had failed to gain sufficient momentum to break through resistance at $25/bbl on the close but it is poised to do so as soon as some fresh bullish news emerges.
The average price for OPEC's basket of seven benchmark crudes gained 50¢ to $23.88/bbl Tuesday.