Market watch: NYMEX crude prices up in after hours trading

With the exception of gasoline, energy futures weakened in trading on the New York Mercantile Exchange Tuesday. However, crude rose in after-hours electronic trading in reaction to an unexpected drop in US inventories.
March 7, 2001
2 min read


By the OGJ Online Staff


HOUSTON, Mar. 7
�With the exception of gasoline, energy futures weakened in trading on the New York Mercantile Exchange Tuesday, but crude rose in after-hours electronic trading in reaction to an unexpected drop in US inventories.

The American Petroleum Institute's weekly report said crude supplies for the week ending Mar. 2 fell by 3.9 million bbl, contradicting analysts' predictions of a small increase in US oil stocks. The API said distillate inventories, including home heating oil, were down by 781,000 bbl.

Meanwhile, the April contract for benchmark US light, sweet crudes declined 28� to $28.32/bbl Tuesday on the NYMEX as the May contract ended at $28.37, down by 22�.

Tuesday's NYMEX crude losses came after Monday markets saw a 76� gain. Traders attributed Tuesday's losses to expectations that the API statistics would show an inventory build.

After the API report was made public, after the NYMEX close, both the April and May crude contracts reversed course in after-hours trading to $28.52/bbl and $28.60/bbl, respectively.

Home heating oil for April delivery lost 1.02� to settle at 73.06�/gal while unleaded gasoline for the same month jumped by 1.03� to end at 89.20�/gal.

Natural gas for the same month fell by 2.1� to finish at $5.32/Mcf on the NYMEX.

In London, North Sea Brent crude futures closed slightly lower on the International Petroleum Exchange based on profit-taking related selling. The April Brent contract settled at $26.48/bbl Tuesday, down by 23� from the previous close. Tuesday's high was $26.81/bbl, and the low was $26.32/bbl.

On the IPE, the April natural gas contract settled at the equivalent of $3.34/Mcf, down 7�.

The average price for the Organization of Petroleum Exporting Countries' basket of seven crudes dropped 16� to $24.36 Tuesday. So far this year, the basket price has averaged $24.66/bbl, down from $27.60/bbl for 2000 overall.

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