Commodities for Tuesday, July 9, 1985 : Petroleum Futures Advance
Petroleum futures prices were sharply higher Tuesday on the New York Mercantile Exchange as refiners began rebuilding inventories after OPEC’s weekend meeting.
Refiners had let their inventories fall prior to the meeting of the Organization of Petroleum Exporting Countries, anticipating that the cartel would either lower prices or collapse, said Andrew Lebow, a petroleum analyst in New York with Shearson Lehman Bros.
“Once the meeting was over and it became apparent that OPEC was still together, some traders went to the market” to rebuild inventories, Lebow said.
Lebow said prices were supported further by tight supplies on the cash market. He said OPEC reduced its production in June to its lowest level in 20 years.
Unleaded gasoline was supported by tight supplies available in New York harbor, Lebow said. But he added that the tightness is likely to be temporary.
Gold was slightly lower and silver slightly higher in quiet trading on the Commodity Exchange in New York.
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