By OGJ editors
HOUSTON, May 22 -- New York natural gas prices on May 19 fell further below the $6/MMbtu floor price they pierced the day before, when they closed at their lowest level in more than 15 months (OGJ Online, May 19, 2006). The June gas contract lost 3.5¢ to $5.962/MMbtu May 19 on the New York Mercantile Exchange.
Gas prices recently have tracked crude prices, which also have fallen slightly. Oil's recent dip in price has analysts at Raymond James & Associates Inc. asking when this pullback will stop.
And the Centre for Global Energy Studies Monthly Oil Report, published May 22, said, "Oil prices have continued to break new ground in May, but prices may have now peaked, as demand forecasts are trimmed and stock-builds begin to offset spare production capacity concerns." However, the supply-demand balance, CGES noted, "remains on the tight side, with any supply disruption likely to have a marked effect on oil prices."
Energy prices
The June contract for benchmark US light, sweet crudes lost 92¢ to $68.53/bbl on NYMEX, while the July contract decreased by 85¢ to $69.29/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., was down by 92¢ to $68.54/bbl.
Meanwhile, gasoline for June delivery rose 2.33¢ to $2.0384/gal. Heating oil for the same month lost 3.12¢ to $1.9201/gal.
In London, the July IPE contract for North Sea Brent crude fell 99¢ to $68.68/bbl. Gas oil for June was down $4.45 to $607.25/tonne.
The average price for the Organization of Petroleum Exporting Countries' basket of 11 benchmark crudes gained 46¢ to $63.41/bbl on May 19.