Market watch: Energy futures fall

Energy futures prices dropped Tuesday as US traders came back from their holiday break. The benchmark US light, sweet crude declined by 27¢ to $26.93/bbl on the New York Mercantile Exchange.

Sept. 5, 2001

2 min read

By the OGJ Online Staff

HOUSTON, Sept. 5 -- Energy futures prices dropped Tuesday as US traders came back from their holiday break.

The benchmark US light, sweet crude declined by 27¢ to $26.93/bbl on the New York Mercantile Exchange, while the November contract dropped 28¢ to $27.07/bbl. However, both contracts inched up in after-hours electronic trading to $26.94/bbl and $27.10/bbl, respectively.

Unleaded gasoline for October delivery fell 1.81¢ to 76.84¢/gal on the NYMEX. Home heating oil for the same month was down 1.18¢ to 76.11¢/gal.

The October natural gas contract also slipped 2.1¢ to $2.36/Mcf. Meanwhile, injections of natural gas into underground storage are expected to continue at a strong pace, widening the storage surplus to nearly 390 bcf, or almost 18% above year-ago levels, said Robert Morris at Salomon Smith Barney. US temperatures last week were 23% below last year's levels for the same period and 11% below the 10-year average.

In London, North Sea Brent oil futures appeared fairly stable, with the October contract down 28¢ to $26.26/bbl on the International Petroleum Exchange.

However, analysts said it quickly could fall below the key $26/bbl level if the American Petroleum Institute's weekly report on US inventories proves bearish. That report is scheduled for release after close of the NYMEX today.

Meanwhile, the October natural gas contract inched up 0.59¢ to $2.96/Mcf on the IPE.

The average price for the Organization of Petroleum Exporting Countries' basket of seven crudes gained 7¢ to $24.73/bbl Tuesday.