Oil Prices Plunge
Oil prices plunged by more than $2 a barrel Tuesday on hopes that the inauguration of a new president in OPEC member Nigeria would contribute to a stable supply from the Niger Delta region.
A formal meeting over the weekend between U.S. and Iranian officials also soothed traders' concerns about a potential conflict between the two countries.
Light, sweet crude for July delivery dropped $2.05 to settle at $63.15 a barrel on the New York Mercantile Exchange. Before the long weekend, U.S. crude oil climbed more than $1 to $65.20 Friday. Monday there was no floor trade and no closing price in the U.S. because of the Memorial Day holiday.
Brent futures for July lost $1.58 to close at $68.15 a barrel on London's ICE Futures exchange. In other trading, gasoline futures fell 10.58 cents to settle at $2.2979 a gallon after several refineries restarted on Tuesday. Dow Jones Newswires reported that Alliance Oil's refinery in Belle Chasse, La., and Valero Energy Corp.'s refinery Delaware City, Del., are both restarting. Together, the refineries process 428,500 barrels of crude oil a day.
Traders had bid up futures prices before the Memorial Day holiday, the unofficial kickoff to the summer driving season. However, retail gasoline prices fell last week, the Energy Information Administration reported.
The average retail price for gasoline dipped less than a penny to $3.209 a gallon from $3.218 a gallon in the previous week. Prices, though, are still 34.2 cents higher than a year ago.
Heating oil futures slipped 7.01 cents to finish at $1.8690 a gallon on the Nymex, while natural gas prices fell 4.9 cents to $7.591 per 1,000 cubic feet.
A formal meeting over the weekend between U.S. and Iranian officials also soothed traders' concerns about a potential conflict between the two countries.
Light, sweet crude for July delivery dropped $2.05 to settle at $63.15 a barrel on the New York Mercantile Exchange. Before the long weekend, U.S. crude oil climbed more than $1 to $65.20 Friday. Monday there was no floor trade and no closing price in the U.S. because of the Memorial Day holiday.
Brent futures for July lost $1.58 to close at $68.15 a barrel on London's ICE Futures exchange. In other trading, gasoline futures fell 10.58 cents to settle at $2.2979 a gallon after several refineries restarted on Tuesday. Dow Jones Newswires reported that Alliance Oil's refinery in Belle Chasse, La., and Valero Energy Corp.'s refinery Delaware City, Del., are both restarting. Together, the refineries process 428,500 barrels of crude oil a day.
Traders had bid up futures prices before the Memorial Day holiday, the unofficial kickoff to the summer driving season. However, retail gasoline prices fell last week, the Energy Information Administration reported.
The average retail price for gasoline dipped less than a penny to $3.209 a gallon from $3.218 a gallon in the previous week. Prices, though, are still 34.2 cents higher than a year ago.
Heating oil futures slipped 7.01 cents to finish at $1.8690 a gallon on the Nymex, while natural gas prices fell 4.9 cents to $7.591 per 1,000 cubic feet.
posted by Stock Administrator @ 6:03 PM
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