Brent falls over $4 to $110/bbl four-month low

01 September 2008 15:46  [Source: ICIS news]

LONDON (ICIS news)--Crude prices fell by more than $4/bbl on Monday to take Brent crude on ICE Futures to below $110/bbl for the first time since early May on the back of a stronger US dollar and diminishing threat from Hurricane Gustav.

 

By 14:25 GMT, October Brent crude had hit a low of $109.20/bbl, a loss of $4.85/bbl from the Friday close of $114.05/bbl, before recovering to around $109.70.

 

At the same time, October NYMEX light sweet crude futures was trading around $111.20/bbl, having hit a low of $110.63/bbl, a loss of $4.83/bbl from the previous close.

 

While US crude trading was limited due to Labor Holiday Monday, Gustav, which had been supporting prices over its potential disruption to oil facilities in the Gulf of Mexico, lost strength as it hit land and was downgraded to Category 2 Hurricane.

 

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

 

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

 

To discuss issues facing the chemical industry go to ICIS connect


By: Tony Dillon
+44 20 8652 3214



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly