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Page added on June 28, 2010

WTI oil prices trading higher, eyes on Gulf hurricane Alex

WTI oil prices opened the week’s trading higher as tropical storm Alex is expected to regain strength in the coming days as it moves over warmer waters in the Gulf and possibly become a hurricane.

US WTI Light crude oil futures for August delivery was at $78.80 a barrel midday Singapore on the NYMEX.

“The lack of follow through from the bulls or the bears is understandable, hurricane activity in the Gulf Coast remains unknown,” energy consultant The Schork Group said in a report.

”Crude prices will remain variable,” said David Moore, a commodity strategist at Commonwealth Bank in Sydney. ”At the moment, the crude market is not particularly tight although inventories remain relatively high. Markets are watching developments with the tropical depression Alex.”

”The concern over the tropical storm heading toward the Gulf of Mexico was a positive for crude,” said John Caiazzo, president of Acuvest Commodity Brokers in Temecula, California, in an e-mailed note. ”We suggest the sidelines until after the effects of any storm activity can be assessed.”