26 August 2005, 10:09  Crude prices ease in Asian trade as hurricane skirts oil rigs

Oil prices pulled back from recent record highs in Asian trading on indications Hurricane Katrina would spare offshore oil rigs in the US Gulf Coast, dealers said. Oil prices however remained above 67 usd a barrel on persistent concerns over production and refinery bottlenecks amid robust energy demand to meet the needs of the world's major economies. At 12.00 pm (0400 GMT), New York's main contract, light sweet crude for delivery in October, was trading at 67.18 usd a barrel, down 31 cents from its record closing price of 67.49 in the US overnight. Prices had touched an all-time high of 68 usd a barrel in after-hours electronic trading on Thursday but failed to gain support. "There are indications that the hurricane is veering away from the main production areas in the Gulf of Mexico that's why traders are taking profit," said Tetsu Emori, chief commodities strategist at Mitsui Bussan Futures in Tokyo. "Also, today is a weekend so traders don't like to keep their positions." Hurricane Katrina slammed ashore in Florida on Thursday, killing at least two people, leaving over a million homes without power and collapsing a Miami highway overpass. There had been initial concerns that Katrina could swirl over offshore rigs in the Gulf of Mexico, but forecasts late Thursday showed the hurricane should remain to the east of the main oil fields. Emori said he expects prices to dip further next week as the summer driving season in the US -- the world's biggest energy consumer -- draws to a close, easing pressure on gasoline prices. Emori said prices could still roar back to strike 70 usd a barrel or beyond later this year during the northern hemisphere winter when demand for heating fuel would increase. The market should watch out for the balance between the demand for heating fuel and available supply by October, when the winter season sets in, because this would determine the direction of oil prices, he said.

© 1999-2024 Forex EuroClub
All rights reserved