MARKET WATCHStorm season start marked by higher energy prices

The start of the 2006 North Atlantic-Gulf of Mexico hurricane season was marked June 9 by higher energy prices across the board.

June 12, 2006

By OGJ editors
HOUSTON, June 12 -- The start of the 2006 North Atlantic-Gulf of Mexico hurricane season was marked June 9 by higher energy prices across the board. But Tropical Storm Alberto, the season's first named storm, is expected to miss the Gulf Coast.

"Crude is currently below $72[/bbl], as markets expect Alberto to be only a blip on the radar screen," reported analysts at Raymond James & Associates Inc.

Energy prices
The July contract for benchmark US light, sweet crudes gained $1.28 to $71.63/bbl June 9 on the New York Mercantile Exchange. The August contract rose as well, up $1.18 to $72.31/bbl.

On the US spot market, West Texas Intermediate at Cushing, Okla., was up by $1.28 to $71.63/bbl. Heating oil for July delivery rose by 6.03¢ to $2.05/gal on NYMEX. Gasoline for the same month fell by 5.06¢ to $2.15/gal. Natural gas lost 1.9¢ to $6.17/MMbtu on NYMEX.

In London, the July IPE contract for North Sea Brent crude gained $1.43 to $70.48/bbl. Gas oil for June gained $21.50 to $635.50/tonne.

The average price for the Organization of Petroleum Exporting Countries' basket of 11 benchmark crudes jumped $1.01 to $64.85/bbl on June 9.