Market watch: Energy futures rise
By the OGJ Online Staff
HOUSTON, May 18 -- Energy futures prices generally rose in trading on the New York Mercantile Exchange Thursday.
The market was led by gasoline, which rose in reaction to US President George W. Bush's newly unveiled energy policy plan, which does not indicate any "quick fixes" for consumer energy costs.
Reports about two surveys indicating that this summer domestic demand for gasoline will increase, despite higher prices, also helped boost gasoline prices.
Unleaded gasoline for June surged by 3.36¢ to finish at $1.0212/gal. Other refined petroleum products also closed higher, with June home heating oil rising by 0.87¢ to rest at 78.39¢/gal.
The June contract for light, sweet crude, the American benchmark, rose 5¢ to close at $28.91/bbl. The July contract stood at $29.21/bbl, also up by 5¢. In after-hours electronic access trading in New York, light, sweet crude was fetching $29.07/bbl for the June position and $29.40 for the July contract.
However, NYMEX natural gas for June delivery declined by 5¢ to end at $4.248/Mcf.
Meanwhile, in London Thursday, North Sea Brent crude oil futures closed slightly firmer on the International Petroleum Exchange, after a day of subdued trading following the expiry of the June futures contract.
Brokers said the market was suffering from a lack of significant fresh news to move prices out of the current range.
Futures appeared steady above $28/bbl, but there was some doubt over gasoline's continued strength, and buying interest had fallen over the past few days, they observed.
On Thursday, IPE July Brent futures closed at $28.46/bbl, up by 3¢ from the previous close. The day's high was $28.55 and the low $28.16.
On the IPE, the June natural gas contract settled at the equivalent of $3.16/Mcf, up 1¢.
The Organization of Petroleum Exporting Countries' basket of seven crudes stood at $26.36/bbl Thursday.