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WTI oil price trading higher as Gulf cyclone Alex heads in
Published on June 25, 2010 by oilprices · No CommentsWTI Light oil prices edged higher in early trading on Friday after a US government forecast raised the chances that a weather system headed towards the Gulf of Mexico (named Alex) may develop into a tropical cyclone.
WTI Light crude oil futures for August delivery were at $76.31 midday Singaproe time on the NYMEX.
Weather models project the system will cross Mexico’s Yucatan Peninsula from the Caribbean over the next few days, re-emerging in the Gulf of Mexico, where both Mexican and US offshore oil production facilities are concentrated.
Meanwhile, Asian stock markets opened weaker and European leaders meet this weekend at a G20 summit to discuss the European soverign debt crisis, both issues are having a negative effect on both WTI and Brent oil prices.
Latest forecasts expect the weather system in the Caribbean to turn northwest and hit the coast near the Texas Mexico border, with Mexican oil fields producing more than 2 million barrels per day.
However, some models expect the wave to turn northeast towards Florida and the eastern Gulf of Mexico, closer to US offshore production and where BP Plc is trying to clean up the biggest oil spill in US history. The tropical depression would be named Alex.
Tags: alex, cyclone, gulf, light oil prices, Mexico, oil, oil price, trading, tropical, US, WTI