Market watch: US oil stock decline drives energy futures market higher

Energy futures prices continued to advance Thursday, building on gains made during previous sessions, which were fueled in turn by reports from the American Petroleum Institute of a decline in US oil stocks. Traders also were concerned about the fall in oil stocks during a time when refineries would be ramping up production for the arrival of the US driving season.

April 19, 2002

2 min read

By OGJ editors
HOUSTON, Apr. 19 -- Energy futures prices continued to advance Thursday, building on gains made during previous sessions, which were fueled in turn by reports from the American Petroleum Institute of a decline in US oil stocks. Traders also were concerned about the fall in oil stocks during a time when refineries would be ramping up production for the arrival of the US driving season.

The May contract for crude on the New York Mercantile Exchange rose 24¢ to $26.18/bbl, while the June contract climbed by 23¢ to $26.28/bbl. Both positions deflated in after-hours electronic trading, however, to $25.92/bbl and $26.05/bbl, respectively.

During the regular NYMEX session Thursday, heating oil for May delivery rose 18¢ to 65.58¢/gal, while unleaded gasoline for the same month closed at 81.13¢, up 36¢. May's NYMEX natural gas contract, meanwhile, rose 8¢ reaching $3.49/Mcf.

North Sea Brent crude oil futures prices also continued to rise on the International Petroleum Exchange in London. IPE Brent for June delivery settled at $25.77/bbl Thursday, up 39¢ from the previous close. The contract traded at $25.45-26.05 for the day.

The May natural gas contract, meanwhile, inched up by 2¢ to the equivalent of $1.77/Mcf on the IPE.

The average price for the Organization of Petroleum Exporting Countries' marker basket of seven crudes reached $24.74/bbl Thursday, up from $24.36 the previous day.