A storm brewing in the Caribbean weakened and took concerns over US oil supply and prices down with it.
Hurricane Ernesto was downgraded to a tropical storm after it flooded Haiti's southern coast. However, meteorologists predict that the storm is likely to pick up force again as it moved towards the Gulf, possibly reaching hurricane levels.
Light sweet crude for October delivery fell 76 cents to $71.75 on the NY Mercantile Exchange.
Prices at London's ICE Futures exchange fell by 55 cents to $72.15 a barrel.
The unpredictable storm and unease over Iran's nuclear program will make trade in the energy markets hard over the next few weeks, with both factors having the capacity to generate new highs in the crude market.
While large oil producers in the Gulf of Mexico are prepared to evacuate non-essential personnel, world energy markets are also concerned over Iran's stand-off with the West over its nuclear program.
Natural gas futures on the Nymex went down by 51.8 cents to $6.64 per 1,000 cubic feet and gasoline futures fell 4.41 cents to $1.8510 per gallon. Heating oil futures dropped 1.58 cents to $2.0140 a gallon.
Picture Courtesy: www.flickr.com
Leave a comment