Gas Week

EWN Publishing

Tues 18 Sept: October oil rises to $US81.24, a trading record; natural gas jumps to $US6.65 per 100 cubic feet

Posted by gasweek on 3 October, 2007

October oil rose as high as $US81.24 on Tuesday 18 September, a trading record, reported The Sydney Morning Herald (19/9/2007, p.24).

Gulf of Mexico concerns: Prices were also being sup­ported by concerns about tropical weather systems in the Caribbean and the Atlantic. Though the systems were far from developing into tropical storms or hurricanes, some investors bought on any hint that weather could disrupt critical oil and gas oper­ations in the Gulf of Mexico.

Prices: Light sweet crude for October delivery rose $US1.47 to settle at a record $US80.57 a barrel on the New York Mercantile Exchange on Monday, the contract’s second close above $US80. Though they were at record Nymex trading highs, oil prices were still well be­low inflation-adjusted highs of $US96 to $US101 a barrel achieved in the early 1980s. October petrol rose US0.78c to settle at $US2.0442 a gallon on the Nymex, while heating oil fu­tures rose US2.09c to settle at $US2.2287 a gallon. October natural gas jumped US37.4c to settle at $US6.653 per 1000 cubic feet.

Weather reminder: In addition to tropical weather jitters, natural gas prices were being supported by forecasts for hot weather in the Midwest. Petrol and oil prices jumped after Hurricane Humberto cut power to Texas, temporarily closing several refineries. Most of those facilities were now in the process of restart­ing. But the incident reminded investors of how quickly a hurri­cane can develop and disrupt en­ergy supplies.

The Sydney Morning Herald, 19/9/2007, p. 24

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