MARKET WATCH Energy prices fall in profit taking

Energy futures market prices fell Friday in profit taking as traders cashed in on last week's rally ahead of the weekend.

Aug. 23, 2004

2 min read

By OGJ editors
HOUSTON, Aug. 23 -- Energy futures market prices fell Friday in profit taking as traders cashed in on last week's rally ahead of the weekend.

With no fundamental changes in market conditions, analysts said, the time was ripe for speculators to lock in profits. Some said the market appeared overheated, with a high-risk premium built into prices as a result of violence in Iraq vs. a perceived lower risk of an actual disruption in oil supplies. However, other analysts maintain there is presently no ceiling on a possible price increase.

The September contract for benchmark US light, sweet crudes fell by 84¢ to $47.86/bbl Friday on the New York Mercantile Exchange, while the October contract dropped 92¢ to $46.72/bbl. Gasoline for September delivery plunged by 5.63¢ to $1.2673/gal on NYMEX. Heating oil for the same month was down by 3.59¢ to $1.2296/gal.

However, the September natural gas contract gained 4.5¢ to $5.55/Mcf on NYMEX.

In London, the October contact for North Sea Brent crude lost 79¢ to $43.54/bbl on the International Petroleum Exchange. Gas oil for September delivery increased by $1.75 to $399.75/tonne. The September natural gas contract jumped by 14.4¢ to $4.20/Mcf on IPE.

The average price for the Organization of Petroleum Exporting Countries' basket of seven benchmark crudes gained 56¢ to $43.16/bbl Friday. So far this year, the OPEC basket price has averaged $33.75/bbl.