MARKET WATCHEnergy futures prices mixed in volatile market

Sam Fletcher
Senior Writer

HOUSTON, Oct. 15 -- Energy futures prices were mixed in volatile trade Tuesday, with oil and natural gas continuing to decline and petroleum products rebounding on the New York Mercantile Exchange.

Analysts said there was no fundamental reason for the wide price swings that occurred during the NYMEX session, although some attributed it to technical trading.

Record US oil imports
Meanwhile, US oil imports hit a new monthly high in September, averaging 10.36 million b/d, which was up by 18% from a year ago, the American Petroleum Institute reported Wednesday. The previous record was 10.11 million b/d in April 2001.

Total US imports of crude and petroleum products averaged more than 12.9 million b/d in September, up 16.8% from the same period in 2002. Imports of distillate fuel, including diesel and heating oil, shot up 92.3% from year-ago levels. US imports of gasoline averaged 820,000 b/d, up nearly 1% from last September, said API officials.

"Combined with a 13% increase in various refined overseas products compared [with] a year ago, total imports represented 66% of the US market share in September. So far this year, imports have accounted for an average of about 62% of US consumer supplies," API said.

Imports of Canadian crude into the US totaled 1.97 million b/d in September, a 39.5% increase from the same time last year. Canada remains the top oil exporter to the US, API reported.

US oil production during September increased by 5.1% from the same time last year when production was abnormally low because Gulf of Mexico operations were curtailed by a hurricane. Alaska's production last month of 979,000 b/d was up 10.5% from last year when heavy maintenance reduced production, said API.

The US market for gasoline, "as measured by deliveries," increased by 4.9% in September. "This occurred while retail gasoline prices dropped by more than 15¢/gal during the month. For the month as a whole, [US pump] prices averaged $1.68/gal for regular unleaded, which was still 20% higher than a year ago," API reported.

Futures prices
Unleaded gasoline for November delivery rebounded by 1.25¢ to 88.96¢/gal Tuesday on NYMEX, recouping most of its loss from the previous session. Heating oil for the same month inched up by 0.04¢ to 87.28¢/gal.

The November and December contracts for benchmark US light, sweet crudes each lost 13¢ Tuesday, closing at $31.82/bbl and $31.93/bbl, respectively. The spot market price for West Texas Intermediate at Cushing, Okla., lost 15¢ to $31.83/bbl.

Despite an early rally, the November natural gas contract declined by 7.2¢ to $5.48/Mcf Tuesday on NYMEX, "pressured by late weakness in the crude oil market, a soft physical market, and some profit taking after last week's sharp gains," said analysts Wednesday at Enerfax Daily.

In London, the November contract for North Sea Brent oil increased by 2¢ to $30.69/bbl on the International Petroleum Exchange. Natural gas for the same month gained 2.4¢ to the equivalent of $4.24/Mcf. Gas oil for November delivery was up by $2 to $267.50/tonne.

The average price for the Organization of Petroleum Exporting Countries' basket of seven crudes inched up by 3¢ to $29.78/bbl Tuesday.

Contact Sam Fletcher at [email protected]