October Nymex WTI prices are trading marginally lower Tuesday, extending their losses from the previous session. October WTI ended Monday’s session 68 cents lower at $95.47 a barrel, with some of the gains limited from lower crude demand as Tropical Storm Isaac shuttered refineries on the US Gulf Coast, with WTI also coming under pressure amid speculation that the Western governments may release strategic oil reserves to moderate prices. Whilst prices initially spiked higher as oil producers such as BP and Royal Dutch Shell closed down Gulf production and evacuated workers, refinery closures could result in declines in oil demand. Isaac was moving across the Gulf of Mexico with sustained winds of 70mph and was expected to strengthen into a Category 1 or 2 hurricane before making landfall later today or early Wednesday along the Mississippi or Louisiana coasts, a region home to around 20% of US refining capacity. October WTI fell from opening highs in Asia of $95.73 a barrel this morning to hold at session lows of $95.14, with the market currently seen trading $95.32 a barrel, down 15 cents on the day.
EasyForexNews Research Team