Market watch: Energy prices inch up in uncertain markets

Energy futures prices generally rose a little higher after a day of seesaw swings on international markets Wednesday. The November contract for benchmark US sweet, light crudes inched up 5¢ to $22.53/bbl by the end of trading Wednesday on the New York Mercantile Exchange.

Oct. 11, 2001

2 min read

By the OGJ Online Staff

HOUSTON, Oct. 11 -- Energy futures prices generally rose a little higher after a day of seesaw swings on international markets Wednesday.

At first, oil futures prices moved higher on a statement by Alí Rodríguez Araque, secretary-general of the Organization of Petroleum Exporting Countries, that cartel members were still consulting over recent price declines.

OPEC is well into the third consecutive week that the average price for its basket of seven crudes has remained below its $22-$28/bbl target range. OPEC members previously agreed to take action if market prices remained outside that target range for 10 consecutive trading days. OPEC's basket price regained 25¢ to $19.86/bbl Wednesday.

However, early price gains during international trading sessions Wednesday later eroded as traders reasoned that OPEC will shy away from a politically incorrect production cut while US and UK military forces are pounding terrorist targets in Afghanistan. Traders also figure that OPEC members fear the loss of market share to non-OPEC producers who could replace some of that production.

The November contract for benchmark US sweet, light crudes inched up 5¢ to $22.53/bbl by the end of trading Wednesday on the New York Mercantile Exchange. The December contract also gained 7¢ to $22.96/bbl. In after-hours electronic trading, the November position advanced to $22.65/bbl, while the December contract dipped to $22.95/bbl.

Home heating oil for November delivery slipped by 0.05¢ to 64.63¢/gal as unleaded gasoline for the same month remained unchanged at 61.37¢/gal.The November natural gas contract gained 9.2¢ to $2.48/Mcf on the NYMEX.

The US Department of Energy did not release its usual weekly report of US petroleum inventories Wednesday morning. That report was delayed because of the Columbus Day holiday Monday.

In London, the November contract for North Sea Brent crude closed at $22.01/bbl on the International Petroleum Exchange, still up 13¢ for the day after falling in a wave of profit taking from a high of $22.45/bbl during that session, brokers said.

The November natural gas contract lost 8¢ to the equivalent of $3.21/Mcf on the IPE.