US crude plummets $10/bbl as Gustav passes

02 September 2008 10:23  [Source: ICIS news]

LONDON (ICIS news)--NYMEX light sweet crude futures plummeted by almost $10.00/bbl on Tuesday to take the front month October contract close to $105.50/bbl after reports Hurricane Gustav had caused minimal damage to oil facilities in the US Gulf. 

 

By 09:16 GMT, October NYMEX crude had hit a low of $105.53/bbl, a loss of $9.93/bbl from Monday’s close of $116.65/bbl, before recovering to around $107.16/bbl.

 

At the same time, October Brent crude on London’s ICE Futures was trading around $104.22/bbl, a loss of $5.21/bbl from Monday’s close, before recovering to around $105.92.

 

The US National Hurricane Center downgraded Gustav to a category one storm as it made landfall near Port Fourchon, Louisiana, on Monday.

 

Maximum sustained wind speeds have decreased to 45 miles/hour (75 km/hour), from earlier reported speeds of 115 miles/hour with continued weakening forecast, the centre said, adding Gustav was expected to become a tropical depression later on Tuesday.

 

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By: Alex Davis
+44 20 8652 3214

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