Market watch: Energy futures prices flatten in international markets

By the OGJ Online Staff

HOUSTON, Jan. 21 -- Energy futures prices remained fairly flat Friday as the monthly oil market report by the International Energy Agency challenged the prevalent bearish market.

December oil production by all members of the Organization of Petroleum Exporting Counties, including Iraq, dipped to 25.65 million b/d, down from 26.04 million b/d in November, said IEA officials.

They also reported world oil consumption rose only 100,000 b/d last year, the lowest level of increase since 1985. However, demand for oil is projected to increase by 600,000 b/d this year, IEA said.

The February contract for benchmark US light, sweet crudes edged up 3¢ to $18/bbl Friday on the New York Mercantile Exchange after falling below that level Thursday for the first time in 2 years. The March contract also increased by the same amount to $18.66/bbl.

Unleaded gasoline for February delivery gained 0.31¢ to 53.92¢/gal, but home heating oil for the same month dipped 0.04¢ to 51.41¢/gal. The February natural gas contract lost 1.3¢ to $2.24/Mcf.

The NYMEX closed early Friday ahead of the long Martin Luther King holiday weekend, with no after-hours electronic trading.

In London, the March contract for North Sea Brent oil gained 4¢ to $18.45/bbl on the International Petroleum Exchange. The February natural gas contract fell 4.3¢ to the equivalent of $3.61/Mcf on the IPE.

The average price for OPEC's basket of seven benchmark crudes dropped 26¢ to $17.21/bbl Friday.

For the week as a whole, however, that basket price averaged $17.81/bbl, down from $19.30/bbl the previous week.

So far this year, OPEC's basket price has averaged $18.54/bbl, up from averages of $17.53/bbl for December and $18.38/bbl for the entire fourth quarter of 2001.

OPEC's basket price averaged $23.12/bbl for all of 2001 and $27.60/bbl in 2000.