Energy Sector Roundup: Crude Ends Higher

Crude Prices Edge Higher

Oil prices rebounded sharply from a dip below $132 a barrel, ending higher Thursday in another volatile session fueled by a rising dollar and concerns about supplies. Gas prices reached new record at the pump, rising to a national average of $4.06 a gallon, and are likely to keep climbing.

Light, sweet crude for July delivery rose 36 cents to settle at $136.74 a barrel on the New York Mercantile Exchange.

Oil prices recovered from an earlier dip as low as $131.55 on reports that Nigeria's state owned oil company will take over oil operations in parts of the country from Royal Dutch Shell, PLC, a move traders believe could cut output.

In other Nymex trading, July heating oil futures fell 3.21 cents to settle at $3.9427. Gasoline futures rose 6.02 cents to settle at $3.5260 a gallon. Natural gas added 13.8 cents to settle at $12.798 per 1,000 cubic feet.

Natural Gas Supplies Rise

The Energy Department's Energy Information Administration said in its weekly report that natural gas inventories held in underground storage in the lower 48 states rose by 80 billion cubic feet to nearly 1.89 trillion cubic feet for the week ending June 6.

The inventory level was slightly below the five-year average of about 1.91 trillion cubic feet, and well below last year's storage level of 2.23 trillion cubic feet, according to the government data.

On Wednesday Citi Investment Research analyst Gil Yang raised his forecast for natural gas price this year to $9.50 per 1,000 cubic feet, up from $8.40 per 1,000 cubic feet.