Market watch: Oil futures prices rise in hopeful markets
By the OGJ Online Staff
HOUSTON, Mar. 6 -- Futures prices for oil and refined products rose Tuesday with expectations of a bullish report on US inventories and hopes that Russian oil companies might yet agree to curb their oil exports through the second quarter.
The April contract for benchmark US sweet, light crudes gained 72¢ to $23.17/bbl on the New York Mercantile Exchange, while the May contract was up 76¢ to $23.45/bbl. Both contracts continued to gain in after-hours electronic trading to $23.30/bbl and $23.60/bbl, respectively.
Unleaded gasoline for April delivery jumped 2.39¢ to 73.1¢/gal during the regular trading session on NYMEX. Heating oil for the same month rose 1.69¢ to 60.14¢/gal. The April natural gas contract dropped 2.1¢ to $2.47/Mcf.
After close of NYMEX trading, the American Petroleum Institute reported that US gasoline stocks receded by more than 3 million bbl to a total of 212.99 million bbl last week. Distillate stocks also were down more than 1.7 million bbl to a total of 134.99 million bbl, while US crude inventories registered a smaller-than-expected increase of 1.24 million bbl to 319.95 million bbl during the same period.
In London, North Sea Brent oil futures prices neared $23/bbl on the International Petroleum Exchange, amid growing optimism that Russia would agree to restrain its oil exports through the second quarter.
Meetings between Russian officials and ministers of the Organization of Petroleum Exporting Countries ended Monday without any indication whether Russia will continue to hold back oil exports to world markets
However, OPEC Sec. Gen. Alí Rodríguez Araque was quoted Tuesday as saying he was confident Russia will join with OPEC and other non-OPEC producers in trimming oil supplies until the anticipated increase in world demand for oil at the end of the second quarter. His remarks triggered an afternoon buying session on IPE.
The April Brent contract jumped by 85¢ to $22.79/bbl on IPE. The April natural gas contract dipped 2.6¢ to the equivalent of $2.28/Mcf after being surpassed by the New York market on Monday.
The average price for OPEC's basket of seven benchmark crudes climbed 71¢ to $21.22/bbl Tuesday.