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Oil falls as traders look to Fed talk today
Source: Agencies |
August 31, 2012, Friday
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THE price of oil fell yesterday as producers assessed the impact of Hurricane Isaac and traders waited to see if the Federal Reserve would act to boost the economy.
US benchmark oil fell 87 cents to finish trading at US$94.62 a barrel in New York. Brent crude rose 11 cents to end at US$112.65 a barrel in London.
Oil companies evacuated many Gulf of Mexico platforms and refineries in advance of Isaac, which blew through as a hurricane before being downgraded to a tropical storm. They were assessing damage yesterday.
Some 95 percent of the daily oil production in the Gulf of Mexico has been shut down, according to the Bureau of Safety and Environmental Enforcement.
The federal agency said workers have been evacuated from 509 production platforms, or 85 percent of manned platforms in the Gulf of Mexico. Workers have also been pulled from 50 drilling rigs, or 66 percent of the total, the agency said.
Energy consultant Jim Ritterbusch said traders are good at accounting for the risk of tropical storms and hurricanes, which are a regular fact of life in the Gulf of Mexico.
The bigger issue for the price of oil, he said, was the potential for news from the Federal Reserve on Friday. Investors will be listening to Fed Chairman Ben Bernanke's speech for hints of additional steps to spur borrowing and spending. Some economists doubt he will say anything dramatic.
Ritterbusch noted that stocks were down yesterday, too.
"Financial markets are nervous," he said, adding that oil was being affected.
Meanwhile, the average price of gasoline rose more than 2 cents on Thursday to about US$1 liter. Isaac has forced several refineries along the Gulf Coast to close, and others are operating at reduced rates.
US benchmark oil fell 87 cents to finish trading at US$94.62 a barrel in New York. Brent crude rose 11 cents to end at US$112.65 a barrel in London.
Oil companies evacuated many Gulf of Mexico platforms and refineries in advance of Isaac, which blew through as a hurricane before being downgraded to a tropical storm. They were assessing damage yesterday.
Some 95 percent of the daily oil production in the Gulf of Mexico has been shut down, according to the Bureau of Safety and Environmental Enforcement.
The federal agency said workers have been evacuated from 509 production platforms, or 85 percent of manned platforms in the Gulf of Mexico. Workers have also been pulled from 50 drilling rigs, or 66 percent of the total, the agency said.
Energy consultant Jim Ritterbusch said traders are good at accounting for the risk of tropical storms and hurricanes, which are a regular fact of life in the Gulf of Mexico.
The bigger issue for the price of oil, he said, was the potential for news from the Federal Reserve on Friday. Investors will be listening to Fed Chairman Ben Bernanke's speech for hints of additional steps to spur borrowing and spending. Some economists doubt he will say anything dramatic.
Ritterbusch noted that stocks were down yesterday, too.
"Financial markets are nervous," he said, adding that oil was being affected.
Meanwhile, the average price of gasoline rose more than 2 cents on Thursday to about US$1 liter. Isaac has forced several refineries along the Gulf Coast to close, and others are operating at reduced rates.
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