Energy prices climb higher in New York, London
By the OGJ Online Staff
HOUSTON, Apr. 5�Benchmark US light, sweet crude for May delivery jumped 93� Wednesday on the New York Mercantile Exchange in response to higher gasoline future prices, which were triggered by concerns about gasoline inventories.
The May US light, sweet crude contract settled at $27.12/bbl, while the June contract rose by 88� to $27.27/bbl.
The May contract for unleaded gasoline settled at 97.15�/gal., up 3.98�/gal. Gasoline inventories are lower than typical for this time of year, prompting traders to fear a repeat of last year�s summer price spike.
Home heating oil rose 3.10�, settling at 72.66�/gal. NYMEX natural gas for May delivery gained 6.7� to end at $5.18/Mcf.
Robert Morris, analyst with Salomon Smith Barney Inc. in New York, said natural gas storage levels ended the traditional withdrawal season at 620 bcf compared with 1,031 bcf on Mar. 31, 2000. Morris expects the pace of storage injections this season to be greater than last year, especially during April and May.
Supply/demand dynamics should keep natural gas prices in at least a $4-$5/MMbtu range through the summer, Morris said in a research note Wednesday.
Meanwhile in London on the International Petroleum Exchange, Brent crude futures climbed 55�, settling at $25.32/bbl. Traders said it was too early to say whether the move above $25/bbl could be sustained. The day�s high was $25.48 and the low was $25.06.
On the IPE, the May natural gas contract settled at the equivalent of $3.18/Mcf, up 5�.
The Organization of Petroleum Exporting Countries� basket of seven crudes stood at $23.77/bbl Wednesday, compared with $22.96/bbl Tuesday.