Market watch, July 26

Energy futures prices ended trading with mixed results Tuesday on the New York Mercantile Exchange as the possibility of more crude oil coming into the US market eased supply concerns, causing prices to lose some of the momentum gained in previous sessions.


Energy futures prices ended trading with mixed results Tuesday on the New York Mercantile Exchange as the possibility of more crude oil coming into the US market eased supply concerns, causing prices to lose some of the momentum gained in previous sessions.

The benchmark blend of light, sweet crude oil lost 7� to settle at $27.95/bbl on the NYMEX for September delivery, while the October contract stood at $27.73, also down by 7�.

Refined petroleum products ended higher, with August home heating oil rising 0.21� to finish at 75.56�/gal, while unleaded gasoline for the same month gained 0.90� to rest at 87.10�.

NYMEX natural gas for August delivery slipped by 5.5� to end at $3.66/Mcf.

Refined products prices surged in reaction to two refinery problems. The problems, occurring in New Jersey and Texas, had more effect on the market due to the relative tightness of supply right now. Some analysts maintained that the products also benefited from the activity of technical traders.

Meanwhile in London Tuesday, Brent crude oil futures ended the day little changed on the International Petroleum Exchange�just below the $27 mark. Brokers said the market had been waiting for fresh stocks data to see if market fundamentals had changed. The August natural gas contract on the IPE closed at the equivalent of $2.79, up 2�.

September Brent futures settled Tuesday at $26.94/bbl on the IPE, up 2� from the previous close. The day's high was $27.27 and the low was $26.81.

Also in London, August gas oil settled at $245/tonne, down 25� from the previous close. The day's high was $245 and the low of $241.25.

Little change was expected to take place in either market today.

North Sea Brent oil futures prices rebounded on the Singapore exchange today. Traders said the market showed some recovery on indications that oil producers would not increase wellhead output if prices continued their steadier downward slide.

Speculative elements and rumors dictated the play, with a few other indicators taken into consideration, traders said.

As the day ended in Singapore, Brent for September was up 24� at $26.94/bbl. October also closed higher, up 24� to $26.86.

The price of the Organization of Petroleum Exporting Countries' basket of seven crudes stood at $25.40/bbl Tuesday, compared with $25.70 the previous day, according to OPEC Secretariat calculations.

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