Crude Falls As Gustav Threat Wanes
Crude moved lower by late-morning Monday on a forecasts that Hurricane Gustav is unlikely to intensify in the Gulf of Mexico before striking land.
Category 3 Hurricane Gustav, the most powerful system to hit the region since Rita and Katrina in 2005, is unlikely to strengthen before hitting the coast later today, the National Hurricane Center in Miami said in its latest advisory. Preparations for the storm have closed virtually all offshore oil production and about 10 percent of U.S. refining capacity.
Crude dipped as low as $113.12/barrel from a close of $115.46/barrel Friday after earlier posting gains as high as $118/barrel.
At 1.30pm London time front month October crude was $1.61 lower at $113.85/barrel.
Category 3 Hurricane Gustav, the most powerful system to hit the region since Rita and Katrina in 2005, is unlikely to strengthen before hitting the coast later today, the National Hurricane Center in Miami said in its latest advisory. Preparations for the storm have closed virtually all offshore oil production and about 10 percent of U.S. refining capacity.
Crude dipped as low as $113.12/barrel from a close of $115.46/barrel Friday after earlier posting gains as high as $118/barrel.
At 1.30pm London time front month October crude was $1.61 lower at $113.85/barrel.
