Crude prices fall today on weakening consumer confidence
Crude oil future prices fell today on related news in USA’s Gulf region and weak economic data.
For the day ending Tuesday, 28 August, 2007, crude-oil futures for light sweet crude for October delivery closed at $71.73/barrel (lower by $0.24/barrel or 0.33%) on the New York Mercantile Exchange. Prices are up 1.6% from a year ago.
The New York-based Conference Board's index of confidence declined to 105 from 111.9 in July. Confidence averaged 105.9 in 2006. Earlier, another report showed home prices in the U.S. dropped by a record amount in the second quarter.
Brent crude oil for October settlement fell 40 cents (0.6%) to close at $70.55 a barrel on the London-based ICE Futures exchange.
Oil was also pulled lower by gasoline after Chevron said it had started up several process units at its refinery in Pascagoula, Mississippi. On 16 August, a fire forced a partial shutdown of the unit.
Reformulated gasoline slips after a long haul
Natural gas in New York rose as speculators who had sold contracts in a bet that prices would fall, bought them back, pushing prices higher. Gas for September delivery rose 21.3 cents, or 4 percent, to $5.593 per million British thermal units.
Nymex September reformulated gasoline contract fell 1.93 cent (1%) to $2.0209 a gallon, giving up some of its recent gains as the summer driving season draws to a close. Traders also began to focus on refinery maintenance schedules and heating oil stocks. The September heating oil contract shed 1.22 cent (0.6%) to $1.9975 a gallon.
Yesterday, OPEC Secretary General, Abdalla Salem el-Badri said that volatility in U.S. financial markets, caused by trouble in the subprime and credit markets, is clouding the outlook for global oil demand and economic growth next year.
Attacks on oil facilities in Nigeria have curtailed shipments and tight supplies from OPEC have bolstered crude prices this year. Crude oil prices are also higher because of concern that shipments from Iran, Nigeria and Iraq may be disrupted. OPEC is scheduled to meet at Vienna on 11 September, 2007 for their next meeting.