Oil prices slightly lower as storm weakens

The price of crude oil fell on Thursday on the news that Tropical Storm Chris was weakening rapidly and would not endanger oil facilities in and around the Gulf of Mexico. The oil industry is still in the process of recovering from last year’s disastrous hurricane season, which made today’s news especially welcome. Also helping bring the price of oil lower was a statement from the foreign minister of Saudi Arabia that expressed the opinion that oil should not be used as a weapon in the event that unrest in the Middle East escalates further.

Brent crude for September delivery declined 33 cents to $76.56 per barrel in London. Meanwhile, September West Texas Intermediate crude dropped 35 cents to $75.46 per barrel on the New York Mercantile Exchange. The decline in crude oil prices sent prices on petroleum products lower as well. Nymex unleaded gasoline was 6.37 cents lower to $2.2740 per gallon and September contracts for Nymex heading oil fell 3.24 cents to $2.0970 per gallon.

In the metals markets, copper was higher on Thursday, but gold fell by around $10 to $640.60/$641.35 per troy ouince as oil prices fell and the dollar strengthened. Copper was $87.50 higher to $7,885 per tonne as the possibility of a strike in Chile still was a possibility. Management tendered an offer of a 3 percent hike in salaries and bonuses of around $15,000 per worker, well below what the union is demanding.

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