Market watch: Oil prices rise on Venezuela strike concerns

By the OGJ Online Staff

HOUSTON, Mar. 28�Energy futures prices rose across the New York Mercantile Exchange and international markets Tuesday in reaction to concerns about a possible oil workers' strike in the Venezuelan state of Zulia.

Benchmark US light, sweet crude for May delivery gained 27� to settle at $27.75/bbl on the NYMEX, while the June contract rose 31� to close at $27.84/bbl.

The American Petroleum Institute late Tuesday reported US crude inventories at 302.6 million bbl for the week ending Mar. 23, which was 8.86 million bbl above a week ago and 13.1 million bbl above levels for the same period last year.

Meanwhile, the API reported a 1.59 million bbl drawdown in gasoline stock to 196.45 million bbl, down 2 million bbl from last year's levels.

With US gasoline stocks at unusually low levels going into the summer driving season, the NYMEX April contract for unleaded gasoline increased 61� to 93.95�/gal Tuesday.

The April home heating oil contract rose 1.84� to settle at 77.94�/gal while natural gas for the same month added 29.9� to end the session at $5.62/Mcf.

Traders said colder temperatures across much of the US prompted the rise of home heating oil and natural gas.

In London, the May contract for North Sea Brent crude futures on the International Petroleum Exchange settled at $25.89/bbl, up 49� from the previous close. The day's high was $25.97/bbl and the low was $25.54.

Traders said the strengthening in crude futures stemmed from news that oil workers in the Venezuelan state of Zulia planned to strike Wednesday. A strike could cut Venezuela's oil exports to the US.

On the IPE, the April natural gas contract settled at the equivalent of $3.43/Mcf, up 2�.

The average price for OPEC's basket of seven crudes gained 19� to $23.77/bbl.