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    1. General Interest

    MARKET WATCHEnergy futures prices continue to soar as Iraq combat escalates

    April 12, 2004
    Energy futures prices continued to soar Thursday, following a report Wednesday by the US Energy Information Administration that commercial US inventories of crude plunged by 2.1 million bbl to 292.2 million bbl during the week ended Apr. 2 (OGJ Online, Apr. 7, 2004).

    By OGJ editors

    HOUSTON, Apr. 12 -- Energy futures prices continued to soar Thursday, following a report Wednesday by the US Energy Information Administration that commercial US inventories of crude plunged by 2.1 million bbl to 292.2 million bbl during the week ended Apr. 2 (OGJ Online, Apr. 7, 2004).

    Traders were reluctant to hold open sales contracts for crude and petroleum products ahead of the long Easter weekend for fear that escalating combat in Iraq might threaten that country's oil production and exports. Trading volume was low Thursday as many traders left early ahead of the 3-day weekend. Energy futures markets in the US and UK were closed Friday.

    The May and June contracts for benchmark US light, sweet crudes jumped by 99¢ each to close at $37.14/bbl and $36.59/bbl, respectively, Thursday on the New York Mercantile Exchange. On the US spot market, West Texas Intermediate at Cushing, Okla., gained 98¢ to $37.13/bbl.

    Gasoline for May delivery escalated by 3.83¢ to $1.1508/gal Thursday on NYMEX. Heating oil for the same month was up by 1.95¢ to 92.54/gal. The May natural gas contract advanced by 6.9¢ to $5.94/Mcf, pushed up by rising crude prices despite an EIA report Thursday of the injection of 20 bcf of natural gas into US underground storage during the week ended Apr. 2. That was the first injection of gas into storage for the coming 2004-05 winter demand season and compared with withdrawals of 18 bcf the previous week and 8 bcf a year ago.

    In London, the May contract for North Sea Brent crude increased by 89¢ to $33.34/bbl Thursday on the International Petroleum Exchange. Gas oil for April delivery was unchanged at $289.50/tonne, but the May natural gas contract dipped by 1.7¢ to the equivalent of $3.81/Mcf on IPE.

    The average price for the Organization of Petroleum Exporting Countries' basket of seven benchmark crudes shot up by $1.05 to $32.37/bbl Thursday. The OPEC news agency was closed Monday, so no price update was reported.

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