MARKET WATCHCrude futures down; gas prices up

Crude oil futures fell by more than $1/bbl June 12 on the New York Mercantile Exchange but still closed above $70/bbl in an uncertain market.

June 13, 2006

2 min read

By OGJ editors
HOUSTON, June 13 -- Crude oil futures fell by more than $1/bbl June 12 on the New York Mercantile Exchange but still closed above $70/bbl in an uncertain market.

Daniel L. Barcelo, Banc of America Securities LLC analyst, expects NYMEX oil prices to average $65/bbl in 2006.

For the near-term, he expects oil prices in the $65-70/bbl range as demand moderates and as global crude oil production capacity and US gasoline inventories rebuild.

The first tropical storm of the season never threatened oil and gas production in the Gulf of Mexico. Tropical Storm Alberto pounded northern Florida with rain and powerful wind gusts June 13.

A hurricane warning was downgraded to a tropical storm warning after Alberto's top sustained winds dropped to 50 mph, the National Hurricane Center said.

Energy prices
The July contract for benchmark US light, sweet crudes dropped $1.27 to $70.36/bbl June 12 on NYMEX. The August contract dipped as well, down $1.22 to $71.09/bbl.

On the US spot market, West Texas Intermediate at Cushing, Okla., was down by $1.27 to $70.36/bbl. Heating oil for July delivery declined by 5.46¢ to $1.99/gal on NYMEX. Gasoline for the same month fell by 2.85¢ to $2.1243/gal.

Natural gas gained 5.2¢ to $6.22/MMbtu on NYMEX.

In London, the July IPE contract for North Sea Brent crude declined $1.55 to $68.93/bbl. Gas oil for June held steady at $635.50/tonne.

The average price for the Organization of Petroleum Exporting Countries' basket of 11 benchmark crudes climbed 56¢ to $65.41/bbl on June 12.