By OGJ editors
HOUSTON, Apr. 27 -- Energy futures prices escalated Monday, following a weekend attack by suicide bombers on Iraq's export terminal at Basra (OGJ Online, Apr. 26, 2004).
Although Iraq's exports through Basra resumed the day after the attack, the incident sparked market fears that international terrorists may strike at additional international crude targets.
Meanwhile, Purnomo Yusgiantoro, president of the Organization of Petroleum Exporting Countries, confirmed Tuesday earlier speculation that members of the cartel are discussing raising the current $22-28/bbl target price for their crude. Rafael Ramirez, Venezuela's oil minister, proposed Monday that target prices be raised by $2 to $24-30/bbl. Nigeria has suggested a higher price band of $25-32/bbl.
Purnomo, who is also the energy minister of Indonesia, was quoted by Reuters news service as saying Tuesday, "The $22-28 range was decided in 2000 and now it's 2004. Some OPEC members have proposed a change; therefore, we are now analyzing whether to change the range."
The average price for OPEC's basket of seven benchmark crudes has remained significantly above the group's target-price band since Dec. 5, up by 29¢ to $32.87/bbl on Monday. In March, the near-month contract for benchmark US crude hit a 13-year closing high above $38/bbl on the New York Mercantile Exchange (OGJ Online, Mar. 18, 2004).
Energy prices
The June contract for benchmark sweet, light crudes increased by 51¢ to $36.97/bbl Monday on NYMEX, while the July contract was up by 59¢ to $36.60/bbl. On the US spot market, however, West Texas Intermediate at Cushing, Okla., lost 15¢ to $36.98/bbl Monday.
Gasoline for May delivery jumped by 1.76¢ to $1.1822/gal Monday on NYMEX. Heating oil for the same month rose by 1.58¢ to93.27¢/gal.
The May natural gas contract shot up by 19.3¢ to $5.76/Mcf Monday on NYMEX, outpacing even the jittery crude market as traders looked toward possible tight gas supplies this summer, analysts reported. The natural gas futures price also was buoyed by firmer prices on the natural gas spot market, buying by traders forced to cover open sales contracts, and technical buying after the market broke above minor resistance at last week's high of $5.70/Mcf, analysts said Tuesday at Enerfax Daily.
In London, the June contract for North Sea Brent crude gained 49¢ to $33.58/bbl Monday on the International Petroleum Exchange. Gas oil for May delivery increased by $7 to $293.50/tonne. However, the May natural gas contract lost 3.6¢ to the equivalent of $3.55/Mcf on IPE.
