By OGJ editors
HOUSTON, Sept. 8 -- Energy futures prices generally dropped in trading on the New York Mercantile Exchange Friday, although crude oil futures were expected to climb Monday.
The US Army Monday reported that Iraq's oil pipeline to Turkey would remain shut for at least 5 more weeks pending repairs from sabotage.
The Organization of Petroleum Exporting Countries Sec. Gen. Alvaro Silva Calderon was scheduled to meet with senior Iraqi oil officials Monday, an Iraqi Oil Ministry source told Dow Jones Newswires.
It was to be the first official meeting such the US-led invasion of Iraq, and Iraqi officials told Dow Jones that they hoped the meeting could pave the way for Iraq to attend the Sept. 24 OPEC meeting in Vienna.
Meanwhile, OPEC appears unlikely to hike output at that meeting, analysts said. They cited comments by Saudi Arabia and Kuwait representatives that the output level probably would remain unchanged because the market is well supplied.
Claude Mandil, the International Energy Agency's executive director, told reporters in Dubai that OPEC should raise its output ceiling to lower oil prices, which he called "too high." He said oil market inventories are tight, risking winter oil price hikes.
In other crude oil news, Venezuela's Isla refinery crude distillation unit is down for maintenance work.
Petróleos de Venezuela SA said the La Isla refinery has a 320,000 b/d capacity but actually processes about 200,000 b/d. During the maintenance work, crude processing is expected to fall to 160,000 b/d. A PDVSA spokeswoman said the distillation unit is expected to be down until early October.
Energy prices
The October contract for benchmark US light, sweet crudes dropped 10¢ to $28.88/bbl Friday on NYMEX, while the November position lost 11¢ to $28.86/bbl.
Heating oil for October delivery fell by 0.53¢ to 75.99¢/gal. Unleaded gasoline for the same month gained 0.87¢ to settle at 86.15¢/gal. Analysts said this was a continuing market correction from a price plunge on Sept. 2.
The October natural gas contract lost 3.9¢ to $4.77/Mcf. Analysts said the market was adjusting to expectations of increasing inventories and short-term mild weather forecasts.
In London, the October contract for North Sea Brent oil fell by 10¢ to $27.21/bbl Friday on the International Petroleum Exchange. However, the October natural gas contract inched up by 2¢ to the equivalent of $3.03/Mcf on IPE.
The average price for the Organization of Petroleum Exporting Countries' basket of seven benchmark crudes continued to decline Friday, losing 34¢ to $26.35/bbl.
