Hurricane Dennis misses platforms
Hurricane Dennis missed oil platforms, refineries, and oil tanker traffic in the Gulf of Mexico, calming worries about an extended disruption of US oil supplies due to the storm.
Crude oil prices had climbed to record levels last week in anticipation of the storm. Several platforms were evacuated and production was cut by over 500,000 barrels per day as a precaution ahead of the storm.
Relaxation of concerns over supply send oil prices down on Monday, as August contrasts for Brent crude on the International Petroleum Exchange fell $1.29 in late afternoon trade to $56.90 per barrel.
Meanwhile, West Texas Intermediate for August delivery fell $1.23 on the New York Mercantile Exchange by early afternoon to $58.45 per barrel on the heels of a $1.10 decline on Friday.
August delivery Nymex unleaded gasoline lost 4 cents to $1.7230 per gallon, and Nymex heating oil for August delivery fell $4.6 cents to $1.6720.
Meanwhile, Deutsche Bank raised its oil price forecasts for Brent crude for the third time in a year. The Bank’s 2006 forecast rose from $35 to $45.50 per barrel, it’s 2007 prediction went up from $30 to $38, and its new 2008-2010 estimate was $33, up from $30.
Trade data showed that China’s crude oil imports in June were 2.71 million barrels per day, down from 2.74 barrels per day in June of last year.