Market watch: Prices improve with market correction

Energy futures prices rebounded Thursday as international markets corrected from sharp losses that fell too far in the previous session, analysts reported.

Jan. 11, 2002

By the OGJ Online Staff

HOUSTON, Jan. 11 -- Energy futures prices rebounded Thursday as international markets corrected from sharp losses that fell too far in the previous session, analysts reported.

The February contract for benchmark US light, sweet crudes moved up 20¢ to $20.38/bbl on the New York Mercantile Exchange, while the March position regained 25¢ to $20.90/bbl.

Home heating oil for February delivery added 1.54¢ to 55.33¢/gal, and unleaded gasoline for the same month was up 0.9¢ to 58.96¢/gal. However, the February natural gas contract dropped 5.3¢ to $2.23/Mcf.

In London, the February contract for North Sea Brent crude regained 40¢ to $21.29/bbl on the International Petroleum Exchange. The February natural gas contract fell 15.5¢ to the equivalent of $3.78/Mcf on the IPE.

Analysts expect petroleum futures prices to consolidate at current levels pending any new market movement. So long as there are no reports of overproduction by members of the Organization of Petroleum Exporting Countries or other major oil exporters, they said, oil futures prices should remain above $20/bbl for the near term.

The average price for OPEC's basket of seven crudes was up 10¢ to 418.87/bbl Thursday.