MARKET WATCHOil futures prices rose in shortened NYMEX session

Futures prices for crude and petroleum products generally strengthened in abbreviated trading Friday in New York ahead of the long Memorial Day holiday in the US, ending last week's decline in that market.

June 1, 2004

2 min read

Sam Fletcher
Senior Writer
HOUSTON, June 1 -- Futures prices for crude and petroleum products generally strengthened in abbreviated trading Friday in New York ahead of the long Memorial Day holiday in the US, ending last week's decline in that market.

Analysts anticipated energy futures prices would continue to climb Tuesday following a terrorist attack Sunday in Saudi Arabia that left 22 people dead. Some foreign workers and their families were reported to be leaving Saudi Arabia after that attack.

Meanwhile, Dow Jones Newswires on Tuesday quoted an unnamed senior source in the Organization of Petroleum Exporting Countries as saying that group won't suspend its production quota at a meeting scheduled Thursday in Beirut. Instead, the source said, OPEC will increase its production quota by 2.2 million b/d from the current level of 23.5 million b/d and will table a proposal to raise its long-term target price band of $22-28/bbl by as much as $6/bbl.

OPEC exceeded its current production quota by 2.3 million bbl in May, said Robert S. Morris, Banc of America Securities LLC, New York, in a Tuesday report.

Energy prices
The July contract for benchmark US light, sweet crudes gained 44¢ to $39.88/bbl in Friday's shortened trading session on NYMEX. On the US spot market, West Texas Intermediate at Cushing, Okla., increased by 50¢ to $39.90/bbl.

Gasoline for July delivery climbed by 5.15¢ to $1.4367/gal Friday on NYMEX. Heating oil for the same month was up by 1.14¢ to 99.92¢/gal. However, the July natural gas plunged by 13.1¢ to $6.44/Mcf Friday on NYMEX. Analysts at Enerfax Daily noted Tuesday that the natural gas market was unaffected Friday by a late buying spree that ran up crude prices—"a sign that natural gas traders may be more focused on weather now."

In London, the July contract for North Sea Brent crude rose by 33¢ to $36.58/bbl Friday on the International Petroleum Exchange. The June gas oil contract was unchanged at $314.50/tonne. The July natural gas contract dipped by 0.93¢ to the equivalent of $3.98/Mcf on IPE, which was closed Monday for the UK Spring Bank Holiday.

The average price for OPEC's basket of seven benchmark crudes increased by 16¢ to $36.17/bbl Friday. So far this year, that basket price has averaged $32.29/bbl.

Contact Sam Fletcher at [email protected]