Market watch: API report brings down energy futures

By the OGJ Online Staff

HOUSTON, July 19 -- Energy futures prices were weaker again in trading on the New York Mercantile Exchange Wednesday.

A bearish stocks report from the American Petroleum Institute affected the NYMEX and the International Petroleum Exchange in London.

The August contract for light, sweet crude, the American benchmark, declined 68¢ to rest at $24.89/bbl, while the September contract stood at $24.93, down by 66¢. In after-hours electronic access trading, the contracts were fetching $24.84 and $24.90 respectively.

Refined petroleum products also closed lower, with August home heating oil declining by 1.44¢ to settle at 67.25¢/gal, while unleaded gasoline for the same month fell by 2.41¢ to rest at 71.83¢.

Also on the NYMEX, the August natural gas contract fell 7.8¢ to close at $3.087/Mcf. The September contract fell 8.6¢ to close at $3.146/Mcf.

Meanwhile, in London Wednesday, North Sea Brent crude oil futures slipped to test support at around $24/bbl, following an unexpectedly bearish US oil stocks' report overnight Tuesday from the American Petroleum Institute.

Brokers said that many players, especially in the US, had predicted inventories would fall, but stocks rose strongly, reflecting lower demand for refined products.

The NYMEX market was noticeably more bearish and led the selling on the IPE in the afternoon.

IPE September Brent settled at $24.22/bbl, down by 67¢ from the previous close. The day's high was $24.90 and the low $24.20.

However, the IPE natural gas contract for August rose 5.6¢ to the equivalent of $2.68/Mcf.

The Organization of Petroleum Exporting Countries' basket of seven crudes was $22.64/bbl Wednesday, compared with $23.20 the day before.