Market watch: Energy markets show no spark while awaiting holiday

With no new stimulus and the US 4th of July holiday pending, trading was mixed in energy futures prices Monday.

July 2, 2002

2 min read

By OGJ editors

HOUSTON, July 2 -- With no new stimulus and the US 4th of July holiday pending, trading was mixed in energy futures prices Monday.

The August contract for benchmark US sweet, light crudes dropped 5¢ to $26.81/bbl on the New York Mercantile Exchange. The September contract gained 3¢ to $26.74/bbl. No new trend was evident in after-hours electronic trading as the August contract increased to $26.85/bbl and the September position retreated to $26.70/bbl.

Unleaded gasoline for August delivery jumped by 0.55¢ to 79.19¢/gal during the regular NYMEX session Monday. Heating oil for the same month dipped by 0.01¢ to 68.02¢/gal.

The August natural gas contract dropped 5.3¢ to $3.22/Mcf on NYMEX. With not enough hot summer weather being generated in Texas and much of the Southeast this week, natural gas futures prices will likely keep trending downward to a projected $3.08/Mcf, said analysts at the Enerfax Daily online service

They reported Tuesday, "Many traders already have set prices through the holiday weekend. The sentiment for prices remains downward, with many industrials and end-users using the July 4 holiday week to shut down production."

In a separate report Monday, Robert Morris at Salomon Smith Barney Inc., said, "A key factor for both oil and natural gas prices will be the pace of the economic recovery with regard to demand and inventory trends. Nevertheless, we don't foresee a sharp rise in oil prices near term, apart from geopolitical events, while non-OPEC output is expected to begin increasing this quarter, and OPEC has hinted that it will likely increase output quotas at the end of this quarter."

In London, the August contract for North Sea Brent oil gained 6¢ to $25.64/bbl on the International Petroleum Exchange. The August natural gas contract jumped by 8.1¢ to the equivalent of $2.20/Mcf on the IPE.

The average price for the Organization of Petroleum Exporting Countries' basket of seven benchmark crudes remained unchanged at $24.82/bbl Monday.