Market watch: Rising US oil stocks dampen energy futures prices

Energy prices fell Wednesday in the wake of bearish reports of increased US oil inventories.

May 2, 2002

2 min read

By OGJ editors

HOUSTON, May 2 -- Energy prices fell Wednesday in the wake of bearish reports of increased US oil inventories.

The American Petroleum Institute late Tuesday said US oil stocks increased by 7.6 million bbl last week, while the US Department of Energy early Wednesday put the growth at 4.6 million bbl.

Reports that Israel had nearly completed its withdrawal of troops from Yasser Arafat's Ramallah base also contributed to Wednesday's price decline by easing fears of possible disruption of Middle East oil supplies, analysts said.

The June contract for crude on the New York Mercantile Exchange tumbled 54¢ down to $26.75/bbl Wednesday, while the July contract dropped 50¢ to $26.43/bbl. Both continued their downward slide to $26.55/bbl and $26.26/bbl, respectively, in after-hours electronic trading.

Heating oil for June delivery fell 1.77¢ to 67.42¢/gal on NYMEX. Unleaded gasoline was down 0.84¢ to 80.48¢/gal. The June natural gas contract also slipped 0.60¢ to $3.74/Mcf.

In London, the June contract for North Sea Brent oil lost 60¢ to $25.87/bbl Wednesday on the International Petroleum Exchange. The June natural gas contract declined by 5.1¢ to the equivalent of $1.88/Mcf on IPE.

The average price for the Organization of Petroleum Exporting Countries' basket of seven crudes fell 60¢ to $25.18/bbl Wednesday.