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WTI oil price lower, Hurricane Alex to miss Gulf oil platforms
Published on June 28, 2010 by oilprices · No CommentsWTI oil prices are trading lower, just under the $78 mark on Monday as the latest US weather data suggests that Hurricane Alex should miss inmportant Gulf oil platforms later this week as it crosses close to Mexico.
US WTI Light crude oil futures were trading down at $77.93 at 18.40 GMT Monday on the NYMEX.
Crude oil prices had reached a seven week high of $79.38 on the NYMEX as earlier reports that Alex may have become a threat to oil production in the Gulf of Mexico.
“Alex’s direction seems headed towards Mexico and not the north, where all the rigs and refineries are located,” Hakan Kocayusufpasaoglu, chief investment officer at Archbridge Capital in Zug, Switzerland, told Bloomberg. “Though Mexico also has some production in the region, the real danger is off the coasts of the US, where production and refining are more concentrated.”
The Gulf of Mexico is home to about 30 percent of US oil production and 12 percent of its natural gas production.
Forecasters said Alex was moving slowly away from Mexico’s Yucatan Peninsula. The storm, however, is not expected to hurt current oil capture systems at the BP oil spill a BP executive told reporters in Houston.
Tags: alex, data, gulf, Mexico, oil, oil price, platforms, trading, US, WTI