Crude falls $3/bbl as Gustav weakens, dollar gains

01 September 2008 15:15  [Source: ICIS news]

LONDON (ICIS news)--Crude prices fell by more than $3/bbl on Monday to take Brent crude on London’s ICE Futures to below $111/bbl on the back of a stronger dollar and diminishing threats from Hurricane Gustav in the US Gulf region.

 

By 14:30 GMT, October Brent crude had hit a low of $110.83/bbl, a loss of $3.22/bbl from the Friday close of $114.05/bbl, before recovering to around $111.30.

 

At the same time, October NYMEX light sweet crude futures was trading around $112.50/bbl, having hit a low of $112.45/bbl, a loss of $3.01/bbl from the previous close.

 

While US crude trading was limited due to the Labor Day holiday, Gustav, which had been putting pressure on prices over its potential disruption to oil facilities in the Gulf of Mexico, lost strength as it hit land and was downgraded to a category two storm.

 

More downward pressure was due to the dollar gaining after a number of positive US economic data came out last week.

 

Last Thursday, prices saw an intra-day drop of more than $4/bbl as the International Energy Agency (IEA) had said it was prepared to act in case of heavy disruptions caused by the hurricane.

 

 

By: Staff Reporter
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