Commodities : Energy Futures Prices Gain
Energy futures prices advanced Wednesday on indications that the nation’s refineries are slowing down their operations and that stocks of oil products are on the decline.
On other markets, livestock and meat futures were mostly lower while most grain and soybean prices were a little higher.
Weekly data released late Tuesday by the American Petroleum Institute was “very positive,” said Peter Beutel, an analyst in New York with Elders Futures Inc. The data showed the stocks of heating oil down 6.7 million barrels, while the market had been expecting a decline of 3 million to 5 million.
Refinery runs were off by 3.75% from a week earlier and there was a sizable drop in crude oil imports.
“You couldn’t get a more bullish report even if you invented one,” said Nauman Barakat, an analyst in New York with Smith Barney, Harris Upham & Co.
Also, he said, there was an announcement that for the first time the Organization of Petroleum Exporting Countries will meet with the European Economic Community.
“This is important because the United Kingdom (an EEC member) has until now rejected all overtures to to meet with OPEC,” said Barakat.
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