Market watch: Energy prices dive
Energy futures prices nosedived in trading on the New York Mercantile Exchange Thursday. Profit-taking after the market's spectacular rise during the last couple of sessions led to the losses.
By the OGJ Online Staff
HOUSTON, May 25 -- Energy futures prices nosedived in trading on the New York Mercantile Exchange Thursday.
Profit-taking after the market's spectacular rise during the last couple of sessions led to the losses. Profit-taking activity snowballed, creating the same momentum that led prices up.
The June contract for light, sweet crude fell $1.17 to settle at $28.41/bbl, while the July contract fell $1.10 to $28.60/bbl. In after-hours electronic access trading in New York, the July contract was fetching $28.45/bbl, and the August contract $28.60.
Refined petroleum products also closed lower, with June home heating oil losing 2.12¢ to rest at 79.41¢/gal, while unleaded gasoline for the same month reversed by 4.20¢ to end at $1.1169/gal.
NYMEX natural gas for June delivery declined by 5.9¢ to end at $4.05/Mcf of gas.
Meanwhile, in London Thursday, North Sea Brent crude oil futures also fell sharply on the International Petroleum Exchange to close below $29/bbl.
Brokers said prices fell initially on a lack of buying interest, but technical selling was triggered as support was tested and then broken at $29.
They noted that there was growing anxiety that gasoline's strength would be eroded in the coming months as inventories were rebuilt.
On Thursday, IPE July Brent futures settled at $28.53/bbl, down by 71¢ from the previous close. The day's high was $29.48 and the low $28.20.
The IPE natural gas price rose 0.7¢ to the equivalent of $2.92/Mcf.
The Organization of Petroleum Exporting Countries' basket of seven crudes stood at $26.39/bbl, compared with $26.94 the previous day.