MARKET WATCHGasoline futures price hits record highs on NYMEX

Following four sessions of consecutive losses, gasoline futures prices hit record levels Thursday on the New York Mercantile Exchange after the US Environmental Protection Agency refused to allow three states to delay cleaner gasoline restrictions this summer.

April 23, 2004

2 min read

Sam Fletcher
Senior Writer

HOUSTON, Apr. 28 -- Following four sessions of consecutive losses, gasoline futures prices hit record levels Thursday on the New York Mercantile Exchange after the US Environmental Protection Agency refused to allow three states to delay cleaner gasoline restrictions this summer.

That decision surprised some traders who were expecting EPA to allow California, Connecticut, and New York to postpone their ban on the use of methyl tertiary butyl ether in reformulated gasoline in those states that became effective this year (OGJ Online, Apr. 12, 2004).

The report of another attack on an oil pipeline in Iraq also added to the surge in crude prices Thursday.

Prices escalate
Gasoline for May delivery soared by 4.77¢ to a record settlement of $1.182/gal after briefly touching a record trading high of $1.193/gal Thursday on NYMEX. That more than recouped losses from the previous four sessions totaling 4.45¢, including a drop of 2.41¢/gal on Wednesday. The May heating oil contract jumped by 3.19¢ to 94.11¢/gal Thursday.

The June contract for benchmark US light, sweet crudes gained 98¢ to close at $36.71/bbl on NYMEX, after going as high as $37.15/bbl Thursday. The July position advanced by 94¢ to $36.28/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., was up by 90¢ to $37.43/bbl Thursday.

The May natural gas contract increased by 4.1¢ to $5.62/Mcf Thursday on NYMEX as traders were forced to cover outstanding sales contracts. However, forecasts of continued mild weather limited the upside potential in that market, said analysts Friday at Enerfax Daily.

In London, the June contract for North Sea Brent crude escalated by 93¢ to $33.39/bbl on the International Petroleum Exchange. Gas oil for May delivery gained $2 to $291.75/tonne. The May natural gas contract inched up 1.1¢ to the equivalent of $3.56/Mcf on IPE.

The average price for the Organization of Petroleum Exporting Countries' basket of seven benchmark crudes gained 35¢ to $32.50/bbl Thursday.

Contact Sam Fletcher at [email protected]