Oil prices weaker as Felix seen bypassing US refineries
Crude prices were flat in Asian trade on Monday as reports showed Hurricane Felix would likely bypass key US oil refineries, dealers said.
By Agencies |
SINGAPORE: Crude prices were flat in Asian trade on Monday as reports showed Hurricane Felix would likely bypass key US oil refineries, dealers said.
At 10:48 am New York's main contract, light sweet crude for October delivery, was off three cents at $74.01 per barrel from $74.04 in late US trades Friday, the first time the contract topped the $74 mark since August 6.
The New York Mercantile Exchange was closed Monday for the Labour Day holiday.
Brent North Sea crude for October delivery was seven cents higher at $72.76.
"The indications are it's going to miss the US platforms so prices are trending downwards," Steve Rowles, an analyst with CFC Seymour in Hong Kong, said of New York crude prices.
The Miami-based US National Hurricane Centre upgraded Felix, the second full-fledged hurricane of the Atlantic storm season, to a Category Five storm -- the topmost category on the Saffir-Sampson scale -- with sustained winds hitting 270 kilometers (165 miles) per hour.
There were no immediate reports of damage as Felix skimmed just north of the Paraguana peninsula, site of Venezuela's main oil refineries, and the storm was headed towards Honduras and Belize.
Rowles said prices were also weighed down by profit-taking after its sharp surge on Friday.
"I think the whole point is that Friday was such a big gain that the market is re-evaluating things," said Rowles.
However, oil prices were not expected to fall sharply after latest US energy inventory reports showed gasoline stocks were below average while crude fell by more than the market had expected.
The Department of Energy said last week that US motor fuel inventories dived by 3.6 million barrels in the week to August 24, sharper than the forecasted 2.5 million barrels.
Motor fuel inventories remain far below normal levels as refiners in the United States have struggled to keep up during the peak demand of the holiday driving season, which ended Monday.
At 10:48 am New York's main contract, light sweet crude for October delivery, was off three cents at $74.01 per barrel from $74.04 in late US trades Friday, the first time the contract topped the $74 mark since August 6.
The New York Mercantile Exchange was closed Monday for the Labour Day holiday.
Brent North Sea crude for October delivery was seven cents higher at $72.76.
"The indications are it's going to miss the US platforms so prices are trending downwards," Steve Rowles, an analyst with CFC Seymour in Hong Kong, said of New York crude prices.
The Miami-based US National Hurricane Centre upgraded Felix, the second full-fledged hurricane of the Atlantic storm season, to a Category Five storm -- the topmost category on the Saffir-Sampson scale -- with sustained winds hitting 270 kilometers (165 miles) per hour.
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There were no immediate reports of damage as Felix skimmed just north of the Paraguana peninsula, site of Venezuela's main oil refineries, and the storm was headed towards Honduras and Belize.
Rowles said prices were also weighed down by profit-taking after its sharp surge on Friday.
"I think the whole point is that Friday was such a big gain that the market is re-evaluating things," said Rowles.
However, oil prices were not expected to fall sharply after latest US energy inventory reports showed gasoline stocks were below average while crude fell by more than the market had expected.
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The Department of Energy said last week that US motor fuel inventories dived by 3.6 million barrels in the week to August 24, sharper than the forecasted 2.5 million barrels.
Motor fuel inventories remain far below normal levels as refiners in the United States have struggled to keep up during the peak demand of the holiday driving season, which ended Monday.
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