By OGJ editors
HOUSTON, Mar. 26 -- Most petroleum futures prices continued to decline in international markets Monday in what some analysts described as an "overdue" adjustment.
They said traders had bid up energy prices to unrealistic levels in recent weeks because of concern over Middle East tensions and signals of an economic recovery in the US. When profit-takers moved Friday to cash in those earlier gains, the resulting fall-off of prices continued into this week.
The May contract for benchmark US light, sweet crudes dropped 36¢ to $24.99/bbl Monday on the New York Mercantile Exchange, while the June contract lost 32¢ to $25.17/bbl. However, both regained some of those losses to $25.02/bbl and $25.18/bbl, respectively, in after-hours electronic trading.
Unleaded gasoline for April delivery fell 1.27¢ to 78.81¢/gal on NYMEX, and heating oil for the same month was down 1.11¢ to 64.16¢/gal. However, the April natural gas contract rebounded by 13.1¢ to $3.46/Mcf, wiping out Friday's loss.
In London, North Sea Brent futures slipped, but less dramatically, with erosion of the so-called "war premium" on oil prices on the International Petroleum Exchange. The May Brent contract declined 23¢ to $25.13/bbl Monday. The April natural gas contract dipped 1.3¢ to the equivalent of $2.12/Mcf on IPE.
The average price for the Organization of Petroleum Exporting Countries' basket of seven crudes lost 15¢ to $23.53/bbl Monday.
