27 August 2012 21:12 [Source: ICIS news]
HOUSTON (ICIS)--NYMEX light sweet crude (WTI) for October delivery settled at $95.47/bbl on Monday, down by 68 cents versus the previous close, reversing early gains and posting losses on expectations of a decline in refinery crude demand.
Precautionary measures ahead of Tropical Storm Isaac moving across the Gulf of Mexico towards the Louisiana coast resulted in the shutdown of several refineries along the Gulf coast and could result in a build up in crude inventories.
Gasoline and other fuel prices, however, spiked high on expectations of a shortage of refined products as a result of refineries being down.
The market was also responding to news of a weekend explosion and fire at fuel storage tanks in Venezuela’s Amuay refinery, which could also result in a squeeze in supplies of refined products.
Crude futures peaked overnight at $97.72/bbl, up by $1.57, before aggressive selling drove the October contract to $94.41/bbl, down by $1.74, at which point the dip was viewed as a buying opportunity and a good portion of the losses were recouped.
A bank holiday in the UK saw limited participation, but ICE Brent for October delivery bottomed out at $111.56/bbl before settling at $112.26/bbl, down by $1.33 from its previous close.
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