Market watch: NYMEX crude oil futures rise, natural gas slips slightly

ogj.pennnet.com By OGJ editors

HOUSTON, Jan. 31 -- Futures prices for crude oil and refined products rose on the New York Mercantile Exchange Thursday while natural gas slipped slightly but still remained strong at $5.58/Mcf.

Traders said the market benefited from the momentum of the previous session and also from indications that the US appeared to be edging closer to a military strike in Iraq.

European opposition to the US-led effort seemingly abated somewhat Thursday because the leaders of eight European countries signed a letter declaring their support for the US position.

US President George W. Bush and British Prime Minister Tony Blair met Friday to discuss Iraq.

Traders, worried about the war possibility, confirmed that the market awaits US Secretary of State Colin Powell's speech to the United Nations Security Council on Wednesday. Traders also await news regarding a possible resolution of the general strike in Venezuela.

Futures prices The March NYMEX contract for benchmark US light, sweet crude rose by 22¢ to $33.85/bbl Thursday, while the April position gained 25¢ to $32.96/bbl for the same day.

Heating oil for March delivery jumped by 0.92¢ to 98.05¢/gal. Unleaded gasoline for the same month rose by 1.56¢ to 98.69¢/gal.

The March natural gas contract slipped by 4.6¢ to $5.58/Mcf Thursday.

Meanwhile, in London Thursday, North Sea Brent crude oil futures prices also settled higher on the International Petroleum Exchange. IPE March Brent futures settled at $31.21/bbl, up 19¢. The natural gas contract dropped 4.4¢ to the equivalent of $3.22/Mcf on IPE.

The average price for OPEC's basket of seven benchmark crudes gained 28¢ Thursday to $30.58/bbl.