Sam Fletcher
OGJ Senior Writer
HOUSTON, Apr. 7 -- Energy prices declined Apr. 6 as markets anticipated a drop in first-quarter earnings starting next week, but crude remained above $51/bbl in New York.
"The price weakness was primarily driven by a stronger US dollar," said analysts at Pritchard Capital Partners LLC, New Orleans. "Keep in mind the seasonally positive backdrop for crude driven by improving gasoline demand entering into the Spring driving season. Gasoline supplies are slightly above the 5-year average, while refineries are running at relatively low levels [and] could be susceptible to supply disruption if unexpected refinery outages occur."
In Houston, analysts at Raymond James & Associates Inc. reported, "Energy stocks followed the broader market, crude oil, and natural gas lower." Analysts are expecting a small build in crude inventories to be reported Apr. 8.
Energy prices
The May contract for benchmark US dropped $1.46 to $51.05/bbl Apr. 6 on the New York Mercantile Exchange. On the US spot market, West Texas Intermediate at Cushing, Okla., was down the same amount to the same finish. The June crude contract lost $1.30 to $53.38/bbl on NYMEX. Heating oil for May fell 2.69¢ to $1.42/gal. The May contract for reformulated blend stock for oxygenate blending (RBOB) declined 1.69¢ to $1.48/gal.
Natural gas for the same month dropped 6.9¢ to $3.73/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., climbed 6.5¢to $3.74/MMbtu.
In London, the May IPE contract for North Sea Brent crude dropped $1.23 to $52.24/bbl. Gas oil for April fell $3.25 to $440.25/tonne.
The average price for the Organization of Petroleum Exporting Countries' basket of 12 reference crudes gained 70¢ to $51.90/bbl on Apr. 6.
Contact Sam Fletcher at [email protected].