Market watch: Energy prices continue fall on US plan to stifle Israeli-Palestinian tensions
By OGJ editors
HOUSTON, Apr. 8 -- Energy futures prices fell again Friday as President George W. Bush moved ahead with a decision to send US Sec. of State Colin Powell to help stifle Israeli and Palestinian tensions. The fall in prices may have worsened on news of an oil supply disruption from Venezuela due to labor disputes.
News in the late morning Friday indicated that only domestic refinery operations were impacted by the strike action in Venezuela, said Merrill Lynch analyst Steven A. Pfeifer in a research note. However, ". . .indications in the last hour of [New York Mercantile Exchange] trading were that export activities were halted at the El Palito terminal in western Venezuela and the Puerto La Cruz terminal in the east. . .."
Regarding Venezuela, Pfeifer added, "There's little data to indicate just how long the hiccup will last, though it seems the prospects are for a shorter. . .disruption."
The May contract for benchmark US light, sweet crudes lost 37¢ Friday to $26.21/bbl on the New York Mercantile Exchange, while the June contract fell 40¢ to $26.41/bbl. In after-hours trading, the May contract made gains to $26.75/bbl and the June contract increased to $26.85/bbl.
Unleaded gasoline for May delivery slipped by 0.63¢ to 81.70¢/gal and heating oil for the same month retreated 0.44¢ to 68.22¢/gal. The May natural gas contract fell 5.8¢ to $3.28/Mcf.
In London, the May contract for North Sea Brent oil tumbled in unison with NYMEX futures prices, settling down $1.32 to $25.99/bbl for the day, after trading in a range of $25.30-27.30/bbl on the International Petroleum Exchange. The May natural gas contract gained 5.3¢ to the equivalent of $1.80/Mcf on the IPE.
The average price for the Organization of Petroleum Exporting Countries' basket of seven crudes lost another 26¢ to $24.96/bbl Friday.