Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Crude oil trades near 2-week low as Isaac impact limited

Published 08/30/2012, 03:42 AM
LCO
-
CL
-
SMT
-
Investing.com - Crude oil futures were lower during European morning hours on Thursday, trading close to a two-week low as oil facilities in the Gulf of Mexico managed to escape significant damage from Hurricane Isaac.

Market players also looked ahead to a speech by Federal Reserve chairman Ben Bernanke at an annual symposium in Jackson Hole, Wyoming on Friday.

On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD95.33 a barrel during European morning trade, shedding 0.2%.

Prices were stuck in a tight range of USD94.92 a barrel, the daily low and a session high of USD95.33 a barrel.

The U.S. National Hurricane Center downgraded Isaac to a tropical storm from a Category 1 hurricane, after it made landfall in southern Louisiana on Wednesday.

The agency said that the storm was likely to weaken further in the next 48 hours.

The news eased concerns over a disruption to supplies from the Gulf, as the storm spared most oil production facilities from significant damage.

Energy traders track tropical storm activity in the event it disrupts production in the Gulf of Mexico, which is home to 23% of U.S. oil production.

Meanwhile, a surprise increase in U.S. oil stockpiles also weighed on prices. Weekly data from the U.S. Energy Department showed that crude oil supplies rose by 3.8 million barrels last week, confounding expectations for a decline of 1.48 million barrels.

The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
 
Oil traders continued to eye a speech by Federal Reserve chairman Bernanke at the central bank’s annual symposium in Jackson Hole on Friday, amid ongoing speculation over how close the Fed is to implementing more stimulus measures.

Bernanke's speech at Jackson Hole precedes the central bank’s two-day policy meeting beginning September 12, and he has used the event in the previous two years to flag the Fed's intention for more easing.

Data on Wednesday showed that U.S. pending home sales rose to the highest level since April 2010 in July while a separate report showed that the U.S. economy grew at a faster rate than initially expected in the second quarter.

Meanwhile, there are also expectations in the market that the European Central Bank is working on measures to help stabilize the euro zone's sovereign debt markets, ahead of its next policy meeting on September 6.

In an article published in German’s Die Zeit newspaper, ECB President Mario Draghi said that the central bank needs to employ "exceptional measures" with monetary policy, while acting within its mandate.

The ECB president had been due to speak at the Jackson Hole summit on Saturday, one day after Bernanke’s speech, but he pulled out, citing his "heavy workload”.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery added 0.45% to trade at USD113.04 a barrel, with the spread between the Brent and crude contracts standing at USD17.71 a barrel.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.