By OGJ editors
HOUSTON, May 21 -- Futures prices for oil and refined products rose slightly Monday, buoyed by continued violence in the Middle East.
A statement by Iranian Petroleum Minister Bijan Namdar Zangeneh that members of the Organization of Petroleum Exporting Countries are not likely to change production quotas at the June meeting also instilled some strength in the oil markets. News of some refinery problems, coupled with strong cash prices, helped boost refined products.
However, threats of new terrorist attacks on the US also weighted on trading. Analysts said the markets lacked the fresh news needed to push prices out of the current range.
The June contract for benchmark US sweet, light crudes gained 15¢ to $28.33/bbl Monday on the New York Mercantile Exchange. The July contract inched up 8¢ to $27.23/bbl. Both positions retreated in after-hours electronic trading to $28.06/bbl and $27.07/bbl, respectively.
Heating oil for June delivery increased by 0.39¢ to 68.99¢/gal during the regular NYMEX session Monday. Unleaded gasoline for the same month rose 0.26¢ to 80.64¢/gal. However, the June natural gas contract dropped 10.8¢ to $3.49/Mcf.
In London, the June contract for North Sea Brent oil closed at $26.38/bbl, up 2¢ for the day after trading at $26.15-26.67/bbl on the International Petroleum Exchange. The June natural gas contract, however, dropped 2.2¢ to the equivalent of $1.74/Mcf on the IPE.
The average price for OPEC's basket of seven benchmark crudes lost 20¢ to $24.96/bbl Monday.
For last week as a whole, OPEC's basket price averaged $25.76/bbl, up 77¢ from its average during the first week of May. So far this year, the basket price has averaged $21.65/bbl, compared with an average price of $23.12/bbl for all of 2001.
