MARKET WATCHEnergy prices mixed ahead of bullish market factors

Energy prices in New York and London were mixed Tuesday, with traders apparently reluctant to move with no major news of fundamental importance and no clear insight as to whether the next inventory report would be bullish or bearish.

July 14, 2004

2 min read

Sam Fletcher
Senior Writer

HOUSTON, July 14 -- Energy prices in New York and London were mixed Tuesday, with traders apparently reluctant to move with no major news of fundamental importance and no clear insight as to whether the next inventory report would be bullish or bearish.

However, futures prices for crude and petroleum products registered gains overnight on the Tokyo Commodity Exchange with reports of another bomb attack in Baghdad.

The US Energy Information Administration added to the bullish tone when it reported early Wednesday that commercial US crude inventories fell by 2.1 million bbl to 302.9 million bbl during the week ended July 9, vs. an expected draw of 500,000 bbl. US gasoline stocks dropped by 200,000 bbl to 205.9 million bbl during the same period, while distillate fuels increased by 2.7 million bbl to 116.7 million bbl, still in the lower half of the average range for this time of year.

Energy prices
The August contract for benchmark US light, sweet crudes dipped by 6¢ to $39.44/bbl Tuesday on the New York Mercantile Exchange while the September contract lost 10¢ to $39.54/bbl. On the US spot market, West Texas Intermediate at Cushing slipped by 7¢ to $39.43/bbl.

Gasoline for August delivery dropped 1.49¢ to $1.2853/gal on NYMEX, but heating oil for the same month climbed by 0.11¢ to $1.0617/gal, having earlier hit new highs for this time of year above last winter's peak. The August natural gas contract gained 4.8¢ to $5.91/Mcf.

EIA said Wednesday that US gasoline production increased during the week ended July 9, averaging a little more than 8.8 million b/d with refineries operating at 95.2% of capacity. However, analysts expect heating oil inventories to build before the start of the winter season.

In London, the August contract for North Sea Brent crude increased by 6¢ to $36.69/bbl on the International Petroleum Exchange. However, gas oil for August delivery lost $14.25 to $333.50/tonne, while the August natural gas contract declined by 0.76¢ to the equivalent of $4.02/Mcf on IPE.

The average price for the Organization of Petroleum Exporting Countries' basket of seven benchmark crudes fell by 70¢ to $35.13/bbl Tuesday.

Contact Sam Fletcher at [email protected]