US crude slides 84 cents/bbl on limited damage from Isaac

29 August 2012 21:08  [Source: ICIS news]

HOUSTON (ICIS)--NYMEX light sweet crude for October delivery settled at $95.49/bbl on Wednesday, down 84 cents versus the previous close, on sentiment that damage to the US Gulf’s energy infrastructure from Hurricane Isaac was minimal.

The market also responded to the weekly supply statistics from the Energy Information Administration (EIA) showing a contrary to forecast build in crude inventories.

A Category 1 hurricane at landfall, Isaac continues to affect the area with rain, high winds and power outages, but refinery operations and offshore oil and gas production, which were shut down for precautionary measures, were expected to return to normal once the weather improves and damage is assessed.

Oil traders also remain optimist that, if required, the US Department of Energy will tap into the Strategic Petroleum Reserve (SPR) to ensure adequate supplies.

The market’s attention will now focus on the central bankers’ conference later this week sponsored by the US Federal Reserve in Jackson Hole, Wyoming, and possible signals of economic stimulus to boost demand for commodities.

West Texas Intermediate (WTI) established an intra-day low of $94.76/bbl, down $1.57, before the dip was viewed as a buying opportunity.

ICE Brent for October delivery did not lose as much ground as its American counterpart, settling at $112.54/bbl, down 4 cents.

By: Ignacio Sotolongo
+1 713 525 2653

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