Market watch: Energy futures prices mixed Wednesday
By the OGJ Online Staff
HOUSTON, Feb. 28 -- Energy futures prices were mixed on international markets Wednesday, with refined products prices up and crude oil prices down.
Refined products rallied from the start of trading on the New York Mercantile Exchange. Unleaded gasoline for March delivery climbed 1.08¢ to 58.4¢/gal, while heating oil was up 0.21¢ to 55.39¢/gal.
Weekly reports on US petroleum inventories, issued after the close of NYMEX on Tuesday by the American Petroleum Institute and before the market's opening Wednesday by the US Department of Energy, were in agreement on the drawdown of refined products stocks last week.
However, API reported US oil inventories increased by 2.5 million bbl last week, while the DOE estimated a decline of 2.5 million bbl.
The April contract for benchmark US sweet, light crudes dipped 12¢ to $21.29/bbl on NYMEX. The May contract also was down 8¢ to $21.51/bbl. However, both positions advanced in after-hours electronic trading to $21.43/bbl and $21.63/bbl, respectively.
The March natural gas contract gained 3.8¢ to $2.43/Mcf Wednesday on NYMEX.
In another report late Wednesday, API said US gasoline pump prices generally were unchanged during the week ended last Friday. Nationally, regular gasoline averaged $1.116/gal, including taxes. Gasoline pump prices have remained relatively steady, around $1.10-1.11/gal, since the start of this year.
Although not near peak summertime levels, gasoline demand remains healthy—up almost 2% percent in January on a year-over-year basis, API reported.
However, officials said total inputs into the nation's 152 refineries last week were about 2% less than in the same period last year. Refineries nationwide were running at an average 89.2% of capacity, below their year-ago mark but up for the fourth straight week.
In London, futures prices for North Sea Brent crude drifted below $21/bbl in afternoon trading, closing little changed after erasing the day's gains on the International Petroleum Exchange. Analysts blamed the lack of "significant surprises" in the latest reports of US inventories or any other bullish news.
The April Brent contract settled at $20.85/bbl, down 1¢ for the day after trading at $20.63-21.32/bbl. The March natural gas contract gained 0.9¢ to the equivalent of $2.35/Mcf on IPE.That marked the second time this week, yet it was still one of only a few occasions over the past 6 months that IPE natural gas futures prices dipped below the level for the comparable near-month gas contract on NYMEX. However, IPE oil futures prices are expected to stabilize at $20.50-20.90/bbl in that market until some change pushes it either up or down.
The average price for the Organization of Petroleum Exporting Countries: basket of seven benchmark crudes advanced 1¢ to $19.46/bbl Wednesday.