Though ConocoPhillips (NYSE:COP) and Placid Refining Company are both receiving hundreds of thousands of barrels of crude from America’s federal reserves to continue refinery operations, and two rigs in the Gulf have been knocked adrift, the overall impact of Ike appears fairly benevolent to energy companies.
Crude oil briefly declined below $100 a barrel on Friday, despite threats to Gulf energy supplies from Hurricane Ike, suggesting traders still believe a soft economy will keep demand down. For full story, click here
Crude oil priced were down by more than $4 in very active trading on NYMEX ClearPort electronic exchange on Monday. The National Hurricane Center lowered the strength category of Hurricane Gustav from 3 to 2 on Monday morning, sending crude oil into free fall. For more information click here
Oil prices are being pushed upwards by the impending arrival of tropical storm Gustav in the Gulf of Mexico. Gustav is projected to become “the largest hurricane in the Gulf of Mexico since Katrina”. Workers are already being evacuated from oil and gas rigs in the area, which has pushed up NYMEX oil futures past $117.
Barrel prices were pushed gently northward in early trading on Monday, as a confluence of factors threatened supply and made it an attractive alternative investment. The dollar’s decline relative to the euro increased anti-inflation hedging activities in commodities.
This past week saw a drawdown of barrel prices on the NYMEX. If your investments include significant exposure outside the commodities sector this is welcome news. The retreating price was largely caused by less demand, especially in the United States.
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