Market watch: Energy futures prices rise with possible OPEC cut

Energy futures prices rose Thursday in international markets with more signals of a possible production cutback from the Organization of Petroleum Exporting Countries. The November contract for benchmark US light, sweet crudes jumped 81¢ to $23.34/bbl on the New York Mercantile Exchange.

Oct. 12, 2001

By the OGJ Online Staff

HOUSTON, Oct. 12 -- Energy futures prices rose Thursday in international markets with more signals of a possible production cutback by the Organization of Petroleum Exporting Countries.

Nearing the end of the third week that OPEC's basket price has sagged below its targeted floor of $22/bbl, markets strengthened on the perception that members of the cartel may soon take action. OPEC's basket price increased 57¢ to $20.43/bbl Thursday.

The November contract for benchmark US light, sweet crudes jumped 81¢ to $23.34/bbl on the New York Mercantile Exchange, where the December contract gained 73¢ to $23.69/bbl. Both continued to advance in after-hours electronic trading to $23.72/bbl and $24.03/bbl, respectively.

Home heating oil for November delivery increased 2.13¢ to 66.76¢/gal on the NYMEX. Unleaded gasoline for the same month was up 1.36¢ to 62.73¢/gal. The November natural gas contract inched up 5.1¢ to $2.53/Mcf.

Prices also rallied on the International Petroleum Exchange in London, with the November contract for North Sea Brent crude gaining 45¢ to $22.46/bbl. The November natural gas contract also was up 1.9¢ to the equivalent of $3.22/Mcf on the IPE.