Market watch: Energy futures prices drop sharply on international markets

Energy futures dropped on international markets Thursday as traders pulled back upon perceptions that a Venezuelan oil workers' strike and Iraq's suspension of oil exports will not prompt a major disruption of oil supplies.

April 12, 2002

2 min read

By OGJ editors
HOUSTON, Apr. 12 -- Energy futures dropped on international markets Thursday as traders pulled back upon perceptions that a Venezuelan oil workers' strike and Iraq's suspension of oil exports will not prompt a major disruption of oil supplies.

Thursday's speculation that Venezuelan President Hugo Chavez would resign was confirmed Friday. Chavez resigned under military pressure during one of the biggest civilian demonstrations against Chevez's 3-year administration.

In addition, indications that the US was making progress in cooling the tensions in the Middle East also had a bearish effect on the market, traders said.

The May contract for New York Mercantile Exchange benchmark crude declined by $1.14/bbl to $24.99/bbl Thursday, while the June contract fell by $1.11/bbl to $25.19/bbl. The May position continued its retreat in after-hours electronic trading, to $24.56/bbl.

Heating oil for May delivery fell by 3.13¢ to 64.71¢/gal during the regular NYMEX session Thursday. Unleaded gasoline for the same month declined by 4.57¢ to 78.87¢/gal. The May natural gas contract was down by 8.1¢ to $3.10/Mcf.

In London on the International Petroleum Exchance, North Sea Brent prices for May delivery dropped 97¢ to $25.04/bbl. The May natural gas contract dipped 7¢ to the equivalent of $1.71/Mcf on the IPE.

The average price for the Organization of Petroleum Exporting Countries' basket of seven crudes dropped 74¢ to $23.52/bbl Thursday.