Market watch, Aug. 1

Energy futures trading was mixed Monday, with benchmark oil prices falling on the New York Mercantile Exchange amid warnings of a possible oversupply by Ali Rodriguez Araque, conference president of the Organization of Petroleum Exporting Countries.


Energy futures trading was mixed Monday, with benchmark oil prices falling on the New York Mercantile Exchange amid warnings of a possible oversupply by Ali Rodriguez Araque, conference president of the Organization of Petroleum Exporting Countries.

The September contract for NYMEX crude fell 75� to $27.43/bbl, while the October contract dropped 60� to $27.31/bbl.

Some analysts said they see clear signs that international demand for crude is easing.

However, petroleum products futures were typically volatile on the final day of trading for the July contracts. Unleaded gasoline jumped 2.69� to close at 97.72�/gal, while home heating oil gained 1.16� to 77.93�/gal.

The September contract for natural gas dropped 7.1� to $3.77/Mcf.

On the International Petroleum Exchange in London, oil futures prices drifted below $27/bbl with a lack of buying interest and a dearth of fresh news.

The September contract for North Sea Brent oil dropped 40� to close at $26.96/bbl on Monday, with little change in trading by mid-day Tuesday.

The September gas contract on the IPE plunged 16� Monday to the equivalent of $2.46/Mcf.

In overnight trading on the Singapore Exchange, the September contract for North Sea Brent dropped 43� to $26.93/bbl, while the October contract lost 59� to $26.68/bbl.

London brokers said there are not enough strong factors to give the market a clear direction. They are hoping that the next American Petroleum Institute report of weekly US stocks of oil and petroleum products will move the market. That report is due to be released at the close of trading Tuesday.

More in Economics & Markets