Commodities : Energy Futures Prices Fall

Energy futures prices took a sharp turn downward Monday, reflecting what analysts say is a belief that key OPEC figures lack a realistic view of the economics affecting the oil market.

Heating oil and gasoline lost more than one cent a gallon, while crude oil retreated below $15 a barrel.

In some other markets, precious-metals futures were higher, wheat was higher, but the other grains and soybeans were mostly lower. Livestock and meats were mixed.

Energy futures declined on reports out of Saudi Arabia that portrayed King Fahd as unwilling to connect the idea of reduced oil production with increased prices, analysts said.

One report, in an industry publication, said Fahd fired his oil minister, Ahmed Zaki Yamani, late last month because the minister balked at pressing the Organization of Petroleum Exporting Countries for an increase in production quotas while trying to fix the price of crude around $18 a barrel.

“Yamani resisted because it was economically ridiculous,” said Richard Marose, an analyst in Chicago with Geldermann Inc.

“And Fahd said in a speech today that he would like to see $18 to $20 oil but did not seem willing to cut production,” Marose said.