Market watch: Energy futures prices climb on inventory reduction

Energy futures prices climbed sharply Wednesday following reports of inventory reductions, both from the American Petroleum Institute and the US Department of Energy.

April 18, 2002

2 min read

By OGJ editors
HOUSTON, Apr. 18 -- Energy futures prices climbed sharply Wednesday following reports of inventory reductions, both from the American Petroleum Institute and the US Department of Energy.

Traders said the decline in oil imports from Venezuela, which initiated last week's stock decline, is expected to continue throughout this week and to trigger another decline in inventories next week.

DOE, which released its report Wednesday before the close of trading, confirmed API's figures, which were released after US trading closed Tuesday.

DOE's Energy Information Administration said that last week crude oil stocks declined by 5.6 million bbl, while inventories of gasoline dropped by 1.5 million bbl and heating oil stocks declined by 1.1 million bbl.

The May contract for benchmark US sweet, light crudes on Wednesday gained $1.19 to $25.94/bbl on the New York Mercantile Exchange, while the June contract rose $1.04 to $26.05/bbl. Both positions continued climbing in after-hours electronic trading, to $26.04/bbl and $26.16/bbl, respectively.

Heating oil for May delivery climbed by 1.62¢ to 65.40¢/gal during the regular NYMEX session Wednesday. Unleaded gasoline for the same month jumped by 1.48¢ to 80.77¢/gal. The May natural gas contract was up by 18.3¢ to $3.48/Mcf.

In London on Wednesday, North Sea Brent rallied strongly on the International Petroleum Exchange in reaction to the bullish US oil stocks reports. The June Brent contract gained 80¢ to $25.38/bbl.

The May natural gas contract rose by 2¢ to the equivalent of $1.74 on the IPE.

The average price for the Organization of Petroleum Exporting Countries marker basket of seven crudes gained 83¢ to $24.36/bbl Wednesday.