Crude Declines in Spite of Gustav
Aug 30th, 2008 | By Doug Casey | Category: Financial News, Oil Investment & Alternative EnergyIn the energy market Friday, crude for October delivery slipped a tad, closing at $115.46/barrel, down 13 cents. October reformulated gasoline lost 1.2 cents, to $3.0099/gallon. Anticipation rather than fact ruled the day.
“Everyone’s closing out positions — [traders] never want to leave them open over a holiday weekend with a storm coming,” said Beth Sewell, of Quantum Gas & Power Services.
The lack of any last-minute dramatic action suggests it’s “possible that people are worried that next week, the storm will be past and the price will resume dropping,” said Michael Lynch, president of Strategic Energy & Economic Research.
However, “August is going out with a bang for the energy markets as Gustav rolls in and Hanna and her sisters are following right behind,” said Kevin Kerr, editor of Global Commodities Alert. “Cyclone activity is really ramping up, and all along the Gulf Coast the storm watch is in full gear.”
Kerr added that, “If Gustav does damage to refining or drilling facilities, then all bets are off as to how high gasoline and heating oil could go, but the most incredible spike could be left for natural gas, which is already at bargain-basement levels.”
Source: Crude Declines in Spite of Gustav
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