Market watch: Energy prices fall ahead of weekly API stock report

By the OGJ Online Staff

HOUSTON, Jan. 30 -- Energy futures prices fell in trading Tuesday on the New York Mercantile Exchange in anticipation that the American Petroleum Institute's weekly statistical bulletin would reveal a high stock build.

The March contract for light, sweet crude fell 47¢ to close at $19.58/bbl, while the April contract fell 43¢ to close at $19.91. In the event, the API report did show a 27,000 bbl crude stock increase.

In after-hours electronic access trading, oil continued to fall. The March contract was $19.33/bbl, while the April contract stood at $19.71/bbl.

Refined petroleum products also closed lower, with February home heating oil declining by 1.08¢ to finish at 52.05¢/gal, while unleaded gasoline for the same month lost 1.42¢ to settle at 56.69¢.

The February NYMEX natural gas contract fell 9.8¢ to close at $2.006/Mcf.

Meanwhile, in London Tuesday, North Sea Brent crude oil futures slipped on the International Petroleum Exchange on a mixture of profit-taking related selling and a lessening of buying interest.

Brokers said the market had digested reports suggesting high Organization of Petroleum Exporting Countries compliance with lower production quotas starting Jan. 1, and this had bolstered prices.

But they stressed that more bullish news would be needed to keep prices above $19/bbl in the medium term.

On Tuesday, IPE March Brent futures settled at $19.24/bbl, down 41¢ from the previous close. The day's high was $19.53 and the low $19.08.

The February IPE natural gas contract fell 8¢ to the equivalent of $3.10/Mcf.

OPEC's basket of seven crudes stood at $18.38/bbl Tuesday, compared with $18.72 the previous day.