Market watch: Energy futures were mixed in international trade

By the OGJ Online Staff

HOUSTON, Feb. 23�Energy futures prices were mixed in international trading Thursday, with oil prices trending up on reports by the American Petroleum Institute and the US Department of Energy of a near-record drop of more than 12 million bbl in crude inventories last week.

That decline apparently resulted from delays in unloading incoming tankers because of bad weather along the Gulf Coast. However, inventories are expected to build with the resumption of unloadings, analysts said.

Meanwhile, the April contract for benchmark US light, sweet crudes gained 29� to $28.82/bbl on the New York Mercantile Exchange, while the May contract was up 34� to $28.47/bbl. The April contract inched up to $28.83/bbl in after-hours electronic trading but the May position remained flat.

Refined products closed lower on the NYMEX, however, with the March contract for unleaded gasoline dropping 0.66� to 82.49�/gal and home heating oil for the same month down 0.49� to 73.62�/gal. Natural gas for March delivery also slipped 0.4� to $5.14/Mcf.

On the International Petroleum Exchange in London, the April contract for North Sea Brent crude closed at $26.46/bbl, up 9� for the day, after trading in the range of $26.05-$26.80/bbl. The March natural gas contract also gained 3� to the equivalent of $3.78/Mcf on the IPE.

The IPE oil futures market lacked sufficient fresh news or data to move prices out of its current trading range, brokers said. Trading volume in that market has been fairly light this week, with scant buying interest.

However, brokers claimed there is good technical support for Brent crude around $26.50/bbl, and prices could move swiftly above $27/bbl on the next bullish trend.

The average price for the Organization of Petroleum Exporting Countries� basket of seven crudes lost 13� to $24.48/bbl on Thursday.