December NYMEX WTI prices are trading lower Monday after posting some slim gains during the previous session. December WTI futures ended Friday’s session 23 cents higher at $86.28 a barrel, after trading in a $85.00 to $86.37 range. December WTI prices have slipped below $86 a barrel this morning, as refineries along the East Coast lowered run rates ahead of approaching Hurricane Sandy. Refineries along the US Atlantic Seaboard, having put their storm preparations in place, began to cut rates on Sunday ahead of Hurricane Sandy’s expected landfall along New Jersey’s barrier islands, spurred by fears of power outages. A total of six East Coast oil refineries representing 1.19mln barrels per day, around 7% of total US capacity, could potentially be hit by the deadly storm. The CME said it will suspend floor trading on Monday at NYMEX because of mandatory evacuation by the city of New York ahead of Hurricane Sandy, but the move is unlikely to affect trading as higher volume electronic dealing will operate normally. December WTI has pared back from highs of $86.43 to a low of $85.78, now $85.90, down 38 cents.
EasyForexNews Research Team