Related News
Oil rises as Isaac plows through Gulf
Source: Agencies |
August 29, 2012, Wednesday
|
Online Edition
Online Edition
OIL rose as Isaac gathered strength on its way into the heart of the Gulf of Mexico's oil and refinery operations.
The price got a boost after midday when forecasters said Isaac had strengthened into a Category 1 hurricane with 75 mph (120 kph) winds.
Benchmark oil rose 86 US cents to end at US$96.33 per barrel in New York as traders waited to see how much - and for how long - the storm's powerful winds and driving rains will affect oil production and refinery operations in the region.
Brent crude rose 32 US cents to US$112.58 in London.
Nearly 94 percent of oil production in the Gulf, or 1.3 million barrels per day, has been halted, the US government said yesterday. At least 1 million barrels per day of refining capacity is expected to be shut down, which is about half the refining capacity in the storm's predicted path. The US consumes about 19 million barrels of oil products per day.
Isaac is expected to make landfall over southeastern Louisiana, possibly the New Orleans area, either late yesterday or early today.
"We have to wait and see. A lot of refinery capacity was taken down and the key is going to be how the restart goes," said Andrew Lebow, senior vice president of energy derivatives at Jefferies Bache LLC.
Refineries should escape significant damage if Isaac remains a Category 1 storm. The bigger issue is whether they'll have access to electricity. Some analysts say they could be up and running within hours without damage or a loss of electricity. Others say they likely will remain out of operation for about three days.
Price Futures Group analyst Phil Flynn said that oil producers will take more oil out of inventory in the coming weeks to make up any lost production. The storm also will slow imports of oil into the Gulf.
US pump prices continued to increase ahead of Isaac's landfall. The national average for a gallon of gasoline rose less than a penny to US$3.756 per gallon (US$1 a liter), according to AAA, Wright Express and the Oil Price Information Service. That's nearly 4 US cents more than a week ago.
Gas prices in Mississippi, Alabama, Florida and Louisiana - states in Isaac's path - have tallied even bigger increases.
In a related development, a fire was extinguished at Venezuela's biggest oil refinery after burning for three days, officials said. Oil Minister Rafael Ramirez said officials expect to restart operations in two days. The US imports about 360,000 barrels per day of gasoline from Venezuela, which is delivered to the East Coast.
That helped sink gasoline futures. They fell 2.87 US cents to settle at US$3.126 per gallon a day after rising nearly 8 US cents on Monday.
The price got a boost after midday when forecasters said Isaac had strengthened into a Category 1 hurricane with 75 mph (120 kph) winds.
Benchmark oil rose 86 US cents to end at US$96.33 per barrel in New York as traders waited to see how much - and for how long - the storm's powerful winds and driving rains will affect oil production and refinery operations in the region.
Brent crude rose 32 US cents to US$112.58 in London.
Nearly 94 percent of oil production in the Gulf, or 1.3 million barrels per day, has been halted, the US government said yesterday. At least 1 million barrels per day of refining capacity is expected to be shut down, which is about half the refining capacity in the storm's predicted path. The US consumes about 19 million barrels of oil products per day.
Isaac is expected to make landfall over southeastern Louisiana, possibly the New Orleans area, either late yesterday or early today.
"We have to wait and see. A lot of refinery capacity was taken down and the key is going to be how the restart goes," said Andrew Lebow, senior vice president of energy derivatives at Jefferies Bache LLC.
Refineries should escape significant damage if Isaac remains a Category 1 storm. The bigger issue is whether they'll have access to electricity. Some analysts say they could be up and running within hours without damage or a loss of electricity. Others say they likely will remain out of operation for about three days.
Price Futures Group analyst Phil Flynn said that oil producers will take more oil out of inventory in the coming weeks to make up any lost production. The storm also will slow imports of oil into the Gulf.
US pump prices continued to increase ahead of Isaac's landfall. The national average for a gallon of gasoline rose less than a penny to US$3.756 per gallon (US$1 a liter), according to AAA, Wright Express and the Oil Price Information Service. That's nearly 4 US cents more than a week ago.
Gas prices in Mississippi, Alabama, Florida and Louisiana - states in Isaac's path - have tallied even bigger increases.
In a related development, a fire was extinguished at Venezuela's biggest oil refinery after burning for three days, officials said. Oil Minister Rafael Ramirez said officials expect to restart operations in two days. The US imports about 360,000 barrels per day of gasoline from Venezuela, which is delivered to the East Coast.
That helped sink gasoline futures. They fell 2.87 US cents to settle at US$3.126 per gallon a day after rising nearly 8 US cents on Monday.
- 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.
