Commodity Corner: Ben, Irene Contribute to Volatility

- Commodity Corner: Ben, Irene Contribute to Volatility

Friday, August 26, 2011
Rigzone Staff
by Matthew V. Veazey

The price of a barrel of light sweet crude oil experienced some volatility Friday before settling at $85.37, or just seven cents day-on-day.

The WTI fell as low as $82.95 after Federal Reserve Chairman Ben Bernanke, speaking at a symposium in Jackson Hole, Wyo., did not announce any Fed plans to launch a third round of quantitative easing. A "QE3" would be bullish for oil and other commodities because it would weaken the U.S. dollar.

Hurricane Irene's pending arrival along the East Coast did create upward momentum for the benchmark, however. The WTI peaked at $85.64 as investors weighed the possible effects the storm may have on refining infrastructure and gasoline supplies in the Mid-Atlantic and Northeast.

The Brent contract price also settled higher Friday, gaining 74 cents to end the day at $111.36 a barrel. It traded within a range from $109.38 to $111.65.

Despite Irene's potential impact on East Coast fuel supplies, reformulated gasoline lost four cents to settle at $2.93 a gallon. The U.S. Coast Guard's lack of a decision during floor trading to close New York Harbor prevented a bullish outcome Friday.

September gasoline peaked at $2.98 and bottomed out at $2.91 during the pre-storm session.

Natural gas for September delivery settled flat at $3.93 per thousand cubic feet. It fluctuated from $3.90 to $3.96.

Oil & Gas Post

Promote Your Page Too
LINK

Commodity Corner: Irene Supply Fears Propel Oil, Gasoline

- Commodity Corner: Irene Supply Fears Propel Oil, Gasoline

Thursday, August 25, 2011
Rigzone Staff
by Matthew V. Veazey

Light sweet crude oil gained 14 cents Thursday amid fears that Hurricane Irene could diminish gasoline supplies along the East Coast.

The WTI ended the day at $85.30 a barrel after fluctuating from $83.01 to $86.56. The major hurricane, which is expected to hit North Carolina's Outer Banks Saturday evening, could cause widespread power outages, flooding, and wind damage from the Carolinas to New England. Six refineries with approximately 1.3 million barrels of processing capacity lie within the storm's projected path. Pipelines and terminals serving those facilities could also be impaired should Irene remain on her current track.

As of 5 p.m. EDT Thursday, Hurricane Irene was packing maximum sustained winds of 115 miles per hour. The storm, centered over the Bahamas at press time, was moving north-northwestward at 14 mph.

The Brent contract price also settled higher Thursday, gaining 47 cents to end the day at $110.62 a barrel. It peaked at $111.38 and bottomed out at $109.05.

Buoyed by the threat of Irene, gasoline for September delivery rose nine cents to end the day at $2.97 a gallon. It traded within a range from $2.88 to 2.97.

September natural gas edged upward by one cent to settle at $3.93 per thousand cubic feet. The front-month contract fluctuated from $3.87 to $3.98.

Oil & Gas Post

Promote Your Page Too
LINK