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Crude falls on hopes Isaac spared Gulf of Mexico rigs, refineries

Published 08/30/2012, 01:58 PM
Updated 08/30/2012, 02:00 PM
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Investing.com - Crude oil futures fell in U.S. trading Thursday after Tropical Storm Isaac ploughed inland, leaving heavy winds in its wake although oil rigs and refineries the area came through apparently unscathed.

Rising stockpiles in the U.S. pushed crude prices down lower as well.

Isaac, which reached hurricane strength before landfall, halted the bulk of U.S. Gulf of Mexico oil production before coming ashore.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in October traded at USD94.39 a barrel on Thursday, down 1.15%, off from a session high of USD95.59 and up from an earlier session low of USD93.96.

Isaac continued to churn inland bringing heavy rains and high winds over the south central U.S. though the oil sector appeared to have made it through okay.

Rising stockpiles pushed down prices as well.

U.S. Energy Information Administration said in its weekly report on Wednesday that U.S. crude oil inventories rose by 3.78 million barrels in the week end August 24, beating out expectations for a decline of 1.48 million barrels.

U.S. crude supplies fell by 5.41 million barrels in the preceding week.

Total U.S. crude oil inventories stood at 364.5 million barrels as of last week.

Total motor gasoline inventories decreased by 1.51 million barrels compared to expectations for a decline of 1.42 million barrels, after falling by 962,000 barrels in the preceding week.

Meanwhile, soft jobs figures in the U.S. kept the growth-sensitive commodity at bay as well.

The Labor Department earlier reported that the number of people who filed for unemployment assistance in the U.S. last week held steady at 374,000, compared to expectations for a decline of 4,000.

A separate report showed that personal income in the U.S. rose by 0.3% in July, which matched forecasts, after rising by a revised 0.3% in June.

Personal spending rose 0.4%, in line with expectations after a flat reading in June.

On the ICE Futures Exchange, Brent oil futures for October delivery were up 0.16% and trading at USD112.72 a barrel, namely on fears of an oilworkers' strike in Norway as well as ongoing tensions in the Middle East, up USD18.33 from its U.S. counterpart.








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