Oil prices lower in Asian trade
Oil prices were lower in Asian trade on Tuesday as US energy facilities looked set to escape the fury of Hurricane Dean, dealers said.
By Agencies |
SINGAPORE: Oil prices were lower in Asian trade on Tuesday as US energy facilities looked set to escape the fury of Hurricane Dean, dealers said.
At 10:30 am, New York's main contract, light sweet crude for September delivery fell 32 cents to $70.80 a barrel from $71.12 in late US trades Monday.
Brent North Sea crude for October delivery dropped 35 cents to $69.50 a barrel.
"The market is definitely focused on Hurricane Dean... Hurricane Dean is expected to reach category five today, but is unlikely to reach US oil platforms," said Societe Generale's commodities research team.
The Miami-based US National Weather Center said Hurricane Dean is "a potentially catastrophic category five hurricane on the Saffir-Simpson hurricane scale.
Dean is expected to slam Mexico's Carribbean coast early Tuesday and a US Navy reserve hurricane hunter plane that flew into the monstrous weather system late Monday recorded maximum sustained winds of 256 kilometers (160 miles) per hour, with higher gusts.
Late Monday, the outer bands of the storm started hitting Mexico's Yucatan Peninsula, which braced for the full fury the hurricane was expected to unleash when it barrels ashore.
The storm already killed at least nine people across the Caribbean. "Hurricane Dean has been making tracks but the latest track shows his fury might miss key US oil producing and refining areas," said Phil Flynn, an analyst with Alaron financial house.
"Obviously these storms can make unexpected twists and turns but as of now the market is sensing that most oil production facilities will be spared," he said.
Apart from tracking Hurricane Dean's movement, the market is also waiting for the release of the US Department of Energy's (DoE) weekly petroleum stocks report, dealers said.
Societe Generale is expecting a drawdown of 5.9 million barrels in crude reserves when the DoE report is released Wednesday.
At 10:30 am, New York's main contract, light sweet crude for September delivery fell 32 cents to $70.80 a barrel from $71.12 in late US trades Monday.
Brent North Sea crude for October delivery dropped 35 cents to $69.50 a barrel.
"The market is definitely focused on Hurricane Dean... Hurricane Dean is expected to reach category five today, but is unlikely to reach US oil platforms," said Societe Generale's commodities research team.
The Miami-based US National Weather Center said Hurricane Dean is "a potentially catastrophic category five hurricane on the Saffir-Simpson hurricane scale.
Dean is expected to slam Mexico's Carribbean coast early Tuesday and a US Navy reserve hurricane hunter plane that flew into the monstrous weather system late Monday recorded maximum sustained winds of 256 kilometers (160 miles) per hour, with higher gusts.
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Late Monday, the outer bands of the storm started hitting Mexico's Yucatan Peninsula, which braced for the full fury the hurricane was expected to unleash when it barrels ashore.
The storm already killed at least nine people across the Caribbean. "Hurricane Dean has been making tracks but the latest track shows his fury might miss key US oil producing and refining areas," said Phil Flynn, an analyst with Alaron financial house.
"Obviously these storms can make unexpected twists and turns but as of now the market is sensing that most oil production facilities will be spared," he said.
Apart from tracking Hurricane Dean's movement, the market is also waiting for the release of the US Department of Energy's (DoE) weekly petroleum stocks report, dealers said.
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Societe Generale is expecting a drawdown of 5.9 million barrels in crude reserves when the DoE report is released Wednesday.
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