Market watch: Mideast tensions buoy energy futures prices

Concern over Middle East tensions produced some small price hikes in international futures markets Monday. But another report this week of across-the-board increases in US inventories of oil and petroleum products could trigger a rollback, analysts said.

June 26, 2001

2 min read

By the OGJ Online Staff

HOUSTON, June 26 -- Concern over Middle East tensions produced some small price hikes in international futures markets Monday. But another report this week of across-the-board increases in US inventories of oil and petroleum products could trigger a rollback, analysts said.

The American Petroleum Institute is expected to make another bearish report of last week's US inventories after close of business today.

The August contract for benchmark US sweet, light crudes gained 42¢ to $27.25/bbl Monday on the New York Mercantile Exchange, while the September contract advanced by 38¢ to $27.18/bbl.

Unleaded gasoline for July delivery was up 1.52¢ to 79.02¢/gal and home heating oil for the same month increased 0.5¢ to 73.89¢/gal. However, the July natural gas contract dropped 29.6¢ to $3.45/Mcf on the NYMEX.

In London, the August contract for North Sea Brent crude rose 48¢ to $27.07/bbl on the International Petroleum Exchange.

Brokers said that market had consolidated and looked "reasonably firm" above the $27/bbl mark for the moment. However, they said another increase in US oil stocks probably would trigger a 50¢/bbl loss.

The July natural gas contract lost 10.7¢ to the equivalent of $2.37/Mcf Monday on the IPE.

The average price for the Organization of Petroleum Exporting Countries' basket of seven crudes gained 26¢ to $25.57/bbl Monday.