By OGJ editors
HOUSTON, June 4 -- Futures prices for oil and natural gas slipped Tuesday on the New York market as traders took profits from the recent rally.
The July contract for benchmark US sweet, light crudes retreated by 4¢ to $30.67/bbl Tuesday on the New York Mercantile Exchange, while the August position lost 9¢ to $29.50/bbl. Heating oil for July delivery dipped by 0.07¢ to 76.52¢/gal. However, unleaded gasoline for the same month inched up 0.12¢ to 88.79¢/gal.
Under pressure from weaker crude prices "despite a firmer (natural gas) cash market," the July gas contract dropped 5.2¢ to $6.36/Mcf Tuesday on NYMEX, amid "some profit taking and technical selling after a 4-day run up," said analysts Wednesday at Enerfax Daily.
"The lack of weather-related demand kept the market in check," analysts said. "Most (traders) agreed the market was overbought after a 4-day, 7% rally and was due for a technical pullback."
They claimed, "Traders are scared of being caught short."
In London, the July contract for North Sea Brent oil lost 10¢ to $27.28/bbl on the International Petroleum Exchange. However, the July natural gas contract rebounded by 5.5¢ to the equivalent of $2.66/Mcf on IPE.
The average price for the Organization of Petroleum Exporting Countries' basket of seven benchmark crudes slipped by 1¢ to $27.09/bbl Tuesday.
