Market watch: Energy futures continue downward

Oil futures closed under $28/bbl Wednesday upon reports confirming a weekly rise in crude inventories, while analysts said a cut in US interest rates might spur demand for petroleum products. The American Petroleum Institute said crude inventories rose 7.3 million bbl, while the US Department of Energy said crude rose 6.2 million bbl.

April 19, 2001

2 min read

By the OGJ Online Staff

HOUSTON, Apr. 19 -- Oil futures closed under $28/bbl Wednesday upon reports confirming a weekly rise in crude inventories, while analysts said a cut in US interest rates might spur both the economy and the demand for petroleum products.

The American Petroleum Institute said crude inventories rose 7.3 million bbl, while the US Department of Energy said crude rose 6.2 million bbl. The rise in inventories was more than analysts had expected.

On the New York Mercantile Exchange, the May contract for benchmark US sweet, light crude lost 29¢ to settle at $27.95/bbl, while the June contract dropped 27¢ to end at $28.55/bbl. The May and June oil contracts continued to drop in after-hours electronic trading on the NYMEX to $27.90/bbl and $28.51/bbl, respectively.

Home heating oil for May lost 1.93¢ to settle at 78.19¢/gal, while natural gas dropped 10¢ to end at $5.15/Mcf. The May contract for unleaded gasoline rose 1.03¢ to end at $1.0605/gal.

In London on the International Petroleum Exchange, the June contract for North Sea Brent crude dropped 34¢ to close at $27.29/bbl. On the IPE, the May natural gas contract closed at the equivalent of $3.40/Mcf, down 5¢.

The average price for the Organization of Petroleum Exporting Countries' basket of seven crudes dropped by 51¢ to $25.04/bbl Wednesday.