Oil rises as hurricance fears recede

Oil rises as hurricance fears recede
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First Published: Mon, Sep 03 2007. 01 59 PM IST
Updated: Mon, Sep 03 2007. 01 59 PM IST
AP
Afternoon
Singapore: Oil futures were steady near the previous session’s closing price as worries eased over the threat of a hurricane to key oil infrastructure in the Gulf of Mexico.
Light, sweet crude for October delivery rose 13 cents to $74.17 a barrel in Asian electronic trading on the New York Mercantile Exchange, midafternoon in Singapore. Trade was expected to be sluggish due to the US Labor Day holiday. The October contract added 68 cents Friday to settle at $74.04 a barrel, a four-week high.
Worries over a Category 5 Atlantic storm, Hurricane Felix, eased as it churned its way into the open waters of the Caribbean Sea Sunday and looked less likely to hit the Gulf of Mexico, where key refineries are located.
October Brent crude gained 26 cents to $72.95 a barrel on the ICE futures exchange in London.
Morning
Singapore: Oil futures were steady Monday, 3 September, near the previous session’s closing price as worries eased over the threat of a hurricane to key oil infrastructure in the Gulf of Mexico.
Light, sweet crude for October delivery lost 3 cents to $74.01 a barrel in Asian electronic trading on the New York Mercantile Exchange, mid morning in Singapore. Trade was expected to be sluggish due to the US Labor Day holiday. The October contract added 68 cents Friday to settle at $74.04 a barrel, a four-week high.
Worries over a Category 5 Atlantic storm, Hurricane Felix, eased as it churned its way into the open waters of the Caribbean Sea Sunday and looked less likely to hit the Gulf of Mexico, where key refineries are located.
The National Hurricane Center in Miami said Felix was packing maximum sustained winds of 165 mph (265 kph) as it plowed westward toward Central America, where it was expected to skirt the Honduras coastline Tuesday before slamming into Belize Wednesday.
Still, the hurricane center advised workers on oil platforms in the Gulf of Mexico to monitor the progress of Felix and said the storm could reach the area in four to five days.
Analysts say that investors are not willing to bid oil futures prices sharply higher as they did when Hurricane Dean threatened the Gulf of Mexico two weeks ago. Dean largely missed oil and gas installations in the Gulf.
Oil prices have also been supported by US government reports that consumer spending and factory orders rose in July. Energy investors pay close attention to economic data because an economy’s strength is seen as a barometer of demand for oil and gasoline.
October Brent gained 7 cents to US$72.76 a barrel on the ICE futures exchange in London.
Nymex heating oil futures dropped 0.39 cent to US$2.0535 a gallon (3.8 liters), while gasoline prices fell a tad to US$1.9638 a gallon.
Natural gas futures rose 5.2 cents to US$5.52 per 1,000 cubic feet.
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First Published: Mon, Sep 03 2007. 01 59 PM IST