Related News
Oil prices rise on stormy forecast for Gulf
Source: Agencies |
July 23, 2010, Friday
|
Online Edition
Online Edition
OIL prices advanced yesterday and settled above US$79 as energy producers kept an eye on a developing tropical storm that could move into the Gulf of Mexico by the weekend.
Benchmark crude surged US$2.74, or 3.6 percent, to settle at US$79.30 a barrel on the New York Mercantile Exchange.
Oil and other energy contracts also benefited from surging stock prices that rose on stronger earnings from companies like Caterpillar Inc., 3M Co., UPS Inc. and AT&T Inc.
The Dow Jones industrial average gained more than 225 points and broader indexes rose more than 2 percent in afternoon trading.
The National Hurricane Center in Miami said a storm system, which has already caused flooding in Puerto Rico, the Dominican Republic and Haiti, could become Tropical Storm Bonnie later yesterday and reach the Gulf of Mexico by Saturday.
The federal government has ordered some ships involved in the BP oil spill cleanup to return to port and Shell Oil has begun evacuating nonessential employees from its Gulf operations. Other energy companies in the Gulf are considering evacuations as well.
In other Nymex trading, natural gas prices rose after the government said reserves increased last week but remained below year-ago levels.
Still the supply was 9.9 percent above the five-year average as overall demand remains weak.
"Given the hot weather we've had so far this year, which has been much hotter than last summer, we've put about the same amount of gas in the ground," said Addison Armstrong, director of market research at Tradition Energy. "This heat has helped keep demand high from electricity generators, but on the industrial side, we just don't see any follow-through.
Natural gas gained 13 cents at to settle at US$4.643 per 1,000 cubic feet; heating oil rose 7.32 cents to settle at US$2.0624 a gallon and gasoline added 7.88 cents to settle at US$2.1466 a gallon.
Brent crude rose US$2.45 to settle at US$77.82 a barrel on the ICE futures exchange.
Benchmark crude surged US$2.74, or 3.6 percent, to settle at US$79.30 a barrel on the New York Mercantile Exchange.
Oil and other energy contracts also benefited from surging stock prices that rose on stronger earnings from companies like Caterpillar Inc., 3M Co., UPS Inc. and AT&T Inc.
The Dow Jones industrial average gained more than 225 points and broader indexes rose more than 2 percent in afternoon trading.
The National Hurricane Center in Miami said a storm system, which has already caused flooding in Puerto Rico, the Dominican Republic and Haiti, could become Tropical Storm Bonnie later yesterday and reach the Gulf of Mexico by Saturday.
The federal government has ordered some ships involved in the BP oil spill cleanup to return to port and Shell Oil has begun evacuating nonessential employees from its Gulf operations. Other energy companies in the Gulf are considering evacuations as well.
In other Nymex trading, natural gas prices rose after the government said reserves increased last week but remained below year-ago levels.
Still the supply was 9.9 percent above the five-year average as overall demand remains weak.
"Given the hot weather we've had so far this year, which has been much hotter than last summer, we've put about the same amount of gas in the ground," said Addison Armstrong, director of market research at Tradition Energy. "This heat has helped keep demand high from electricity generators, but on the industrial side, we just don't see any follow-through.
Natural gas gained 13 cents at to settle at US$4.643 per 1,000 cubic feet; heating oil rose 7.32 cents to settle at US$2.0624 a gallon and gasoline added 7.88 cents to settle at US$2.1466 a gallon.
Brent crude rose US$2.45 to settle at US$77.82 a barrel on the ICE futures exchange.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
