By OGJ editors
HOUSTON, May 14 -- Energy futures prices generally advanced Monday, with indications that ministers of the Organization of Petroleum Exporting Countries will not change current production quotas at their June meeting.
Many traders and market analysts had assumed OPEC would hike production in anticipation of increased world demand for oil. But demand growth has not lived up to expectations so far this year. Therefore, an unchanged production quota should keep oil prices buoyant around the $25/bbl level, analysts said.
The June and July contracts for benchmark US sweet, light crudes advanced in tandem by 39¢ each to $28.38/bbl and $27.62/bbl, respectively, on the New York Mercantile Exchange. Both continued climbing in after-hours electronic trading to $28.65/bbl for June and $27.81/bbl for July.
During Monday's regular trading session on NYMEX, unleaded gasoline for June delivery increased 0.68¢ to 79.73¢/gal. Heating oil was up 0.53¢ to 69.45¢/gal. The June natural gas contract inched up 3.4¢ to $3.78/Mcf.
In London, the June contract for North Sea Brent oil gained 20¢ to $26.58/bbl on the International Petroleum Exchange. However, the June natural gas contract fell 7.1¢ to the equivalent of $1.76/Mcf on the IPE.
The average price for OPEC's basket of seven crudes increased by 29¢ to $25.95/bbl Monday.