Market watch: Prices slightly firmer on NYMEX

Energy futures prices closed slightly firmer in trading on the New York Mercantile Exchange Monday. The December contract for light, sweet crude, the American benchmark, improved by 12¢ to rest at $22.15/bbl for December delivery.

Oct. 30, 2001

2 min read

By the OGJ Online Staff

HOUSTON, Oct. 30 -- Energy futures prices closed slightly firmer in trading on the New York Mercantile Exchange Monday.

The December contract for light, sweet crude, the American benchmark, improved by 12¢ to rest at $22.15/bbl for December delivery. In after hours electronic access trading, the contract remained unchanged.

Refined petroleum products also ended firmer, with November home heating oil edging up by 0.08¢ to finish at 62.44¢/gal, while unleaded gasoline for the same month put on 0.06¢ to finish at 58.38¢/gal.

Also on the NYMEX, the November natural gas contract rose 16.1¢ to settle at $3.202/Mcf.

Meanwhile, in London Monday, crude oil futures ended the day little changed on the International Petroleum Exchange despite comments over the weekend from Saudi Arabian petroleum and mineral resources minister Ali al-Naimi, suggesting the Organization of Petroleum Exporting Countries was poised to cut output for the fourth time this year in a bid to bolster falling oil prices.

Over the weekend, a meeting of OPEC and non-OPEC producers produced no tangible result, though OPEC Director of Research Adnan Shihab-Eldin called the discussions "open, frank, and encouraging."

OPEC forecasts fourth quarter oil demand at about 100,000 b/d above expected supply, but Shihab-Eldin said global uncertainties should be taken into consideration in determining the direction of the market.

The research director noted that the upcoming Nov. 14 OPEC meeting would review the market in light of recent developments.

Brokers said it was questionable if an OPEC cut would prevent prices drifting below $20/bbl before the end of the year, since the recession in the US was cutting into demand and was likely to worsen.

On Monday, IPE December Brent futures settled at $21.10/bbl, up by 8¢ from the previous close. The day's high was $21.52 and the low $20.95. The November natural gas price fell 9.9¢ to settle at the equivalent of $2.84/Mcf.

OPEC's basket of seven crudes stood at $19.30/bbl Monday, compared with $19.18 the previous Friday.