(To see the day's top energy news click [TOP/O]) TOKYO, Aug 28 (Reuters) - U.S. crude oil futures rose for a
fourth straight session to stay above $118 a barrel on Thursday,
amid concerns Tropical Storm Gustav will intensify into a
major hurricane as it moves towards energy facilities in the Gulf
of Mexico. * Frontmonth U.S. crude for October delivery CLc1 was up 20
cents at $118.35 a barrel on the Globex electronic trading
platform, after settling up $1.88 at $118.15 on Wednesday. On Wednesday, the contract touched $119.63, the highest since
Friday. In the past three sessions, oil has risen $3.56. * Wednesday's gains came amid forecasts that Gustav was
projected to hit the U.S. Gulf Coast around Monday. Tropical Storm Gustav will strengthen into a major hurricane
and could force shut around 85 percent of U.S. oil and natural
gas production platforms in the Gulf of Mexico in the coming
days, private forecaster Planalytics said. [ID:nN27397216] Shell Oil Co, the U.S. Gulf of Mexico's largest producer,
said its oil production would be affected as early as Thursday as
it evacuates all workers from offshore operations.
[ID:nN27498737] * Earlier on Wednesday, government data also showed U.S.
crude inventories unexpectedly fell by 100,000 barrels, against
forecasts for a 1 million barrel build. Gasoline stocks fell by 1.2 million barrels, compared with a
forecast decline of 2.9 million barrels. Distillate stocks were
unchanged. [EIA/S] * September RBOB RBU8 led the gains on Wednesday, settling
up 3.3 percent at $3.0672 a gallon, amid fears of supply
disruption. September heating oil HOU8 on Wednesday ended up 1.6
percent at $3.2617 a gallon. * Traders were also eyeing the upcoming OPEC meeting and
escalating tensions between Russia and the West after U.S.
President George W. Bush condemned Russia for recognising
breakaway regions in Georgia. [ID:nN26346120]
To read the previous day's closing market report, click [O/R]
Diary of upcoming energy news and events -- [O/DIARY]
Oil prices as of 0009 GMT
Contract Mnth Price Change Day ago pct MA-20*
NYMEX Contracts
US Crude OCT8 $118.35 +0.20 +$1.88 +1.62% $117.61
Heat Oil SEP8 326.67 +0.50 +5.18 +1.61% 321.70
RBOB SEP8 0.00 +0.00 +9.75 +3.28% 294.16
Natgas OCT8 $8.520 -0.088 +$0.221 +2.64% $8.415
ICE Contracts
Brent OCT8 -- +0.00 +$1.59 +1.39% $116.33
Gasoil SEP8 -- +0.00 +$6.75 +0.65% $1045.90
Note: U.S. heating oil and RBOB gasoline contracts listed in
cents per gallon.
* = 20-day moving average for continuation month.
(Reporting by Osamu Tsukimori)
Wednesday, August 27, 2008
Oil rises as Gustav threatens U.S. Gulf
NEW YORK (Reuters) - Oil rose on Wednesday on forecasts that Tropical Storm Gustav will intensify into a hurricane as it ploughs toward the U.S. oil and natural gas platforms in the Gulf of Mexico.
Further support came from weekly U.S. government inventory
data that showed an unexpected drop in crude oil stockpiles in
the world's top consumer.
U.S. crude gained 77 cents to $117.04 a barrel by 1 p.m. EDT (1700 GMT), adding to two days of gains. London Brent crude traded up 57 cents to $115.20 a barrel.
Storm tracks showed Gustav churning toward the Gulf of Mexico, and forecaster Planalytics said 85 percent of U.S. oil and natural gas production in the region could be shut in.
Companies began pulling workers off rigs as weather models showed Gustav strengthening into a hurricane before it hits the Gulf, which pumps about a quarter of U.S. oil production and 15 percent of natural gas output.
If Gustav hits the Gulf as a Category 3 hurricane it would be the biggest storm to hit the region's oil infrastructure since hurricanes Katrina and Rita in 2005.
"After 2005, when a hurricane blows in, guys tend to prepare for the worst. It's a situation where simply you don't want to be the guy caught short, because someone will be," said Steve Mosby, vice president at ADMO Energy.
Analysts said U.S. companies could be forced to draw on oil inventories to make up for disruptions, after data from the U.S. Energy Information Administration showed U.S. crude stocks fell 100,000 barrels last week, against calls for a build.
Gasoline stocks fell 1.2 million barrels, less than forecasts for a 2.9 million barrel drawdown, while distillate inventories were unchanged.
Oil prices have tumbled from a record above $147 a barrel hit last month as high fuel prices and the wider economic problems hurt demand in the United States and Europe.
Traders were also eyeing the upcoming OPEC meeting and escalating tensions between Russia and the West after U.S. President George W. Bush condemned Russia for recognizing breakaway regions in Georgia.
OPEC will next meet on Sept. 9 to review output policy, and some analysts say top exporter Saudi Arabia may come under pressure from within OPEC's ranks to reduce supplies to prevent a further fall in crude prices.
Further support came from weekly U.S. government inventory
data that showed an unexpected drop in crude oil stockpiles in
the world's top consumer.
U.S. crude gained 77 cents to $117.04 a barrel by 1 p.m. EDT (1700 GMT), adding to two days of gains. London Brent crude traded up 57 cents to $115.20 a barrel.
Storm tracks showed Gustav churning toward the Gulf of Mexico, and forecaster Planalytics said 85 percent of U.S. oil and natural gas production in the region could be shut in.
Companies began pulling workers off rigs as weather models showed Gustav strengthening into a hurricane before it hits the Gulf, which pumps about a quarter of U.S. oil production and 15 percent of natural gas output.
If Gustav hits the Gulf as a Category 3 hurricane it would be the biggest storm to hit the region's oil infrastructure since hurricanes Katrina and Rita in 2005.
"After 2005, when a hurricane blows in, guys tend to prepare for the worst. It's a situation where simply you don't want to be the guy caught short, because someone will be," said Steve Mosby, vice president at ADMO Energy.
Analysts said U.S. companies could be forced to draw on oil inventories to make up for disruptions, after data from the U.S. Energy Information Administration showed U.S. crude stocks fell 100,000 barrels last week, against calls for a build.
Gasoline stocks fell 1.2 million barrels, less than forecasts for a 2.9 million barrel drawdown, while distillate inventories were unchanged.
Oil prices have tumbled from a record above $147 a barrel hit last month as high fuel prices and the wider economic problems hurt demand in the United States and Europe.
Traders were also eyeing the upcoming OPEC meeting and escalating tensions between Russia and the West after U.S. President George W. Bush condemned Russia for recognizing breakaway regions in Georgia.
OPEC will next meet on Sept. 9 to review output policy, and some analysts say top exporter Saudi Arabia may come under pressure from within OPEC's ranks to reduce supplies to prevent a further fall in crude prices.
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