Birmingham, Alabama (WiredPRNews.com – Business News ) — Crude oil hit a three month low as Tropical Storm Edouard will evade the majority of offshore production services in the United States Gulf Coast as it comes close to Texas.
Crude oil fell three percent yesterday as Edouard’s winds relieved, eliminating distress of offshore crude oil rigs as well as platforms which will be destroyed by the tropical storm. The Jefferies/ Reuters CRB index of nineteen commodities had its largest single day yesterday since March.
David Moore, commodity strategist at the Commonwealth Bank of Australia in Sydney, said, “The impact from Edouard seems very limited though storms can be unpredictable, and the sentiment towards oil has become bearish because of weak demand.”
The September delivery of crude oil fell as low as $1.19 dollars or 1% to $120.22 per barrel in the electronic dealings in the New York Mercantile Exchange and traded at $120.27 at press time. Yesterday, crude oil fell to $3.69 to settle on $121.41 a barrel in New York, the smallest close ever since May 5.
The National Hurricane Center in Miami issued an advisory which said that Tropical Storm Edouard had sustained winds of almost 45 mph or 75 kilometers per hour at 7 p.m. CST, down from 50 mph earlier. The system was 205 miles southeast of Galveston, Texas moving towards the west at approximately 7 mph. It might reach near-hurricane strength as it closes in on land.
Hurricanes Rita and Katrina, both category 5 storms, destroyed New Orleans in addition to the United States Gulf’s refineries and oil output in August and September of 2005, with the wind speed of above than 155 miles per hour. The Gulf reports for approximately one-fifth of the U.S. oil manufacturing.
Wired Weather Reporter