October Nymex WTI prices are trading moderately lower Wednesday paring back some of the gains posted during the previous session. October WTI futures ended Tuesday’s session 86 cents higher at $96.33 a barrel. After hurricane Isaac made landfall in southern Louisiana on Tuesday, US Gulf of Mexico oil production dropped by more than 90% and coastal refineries shut down as Isaac approached the Louisiana coastline. The majority of the shut downs were, however, on a pre-cautionary basis and it’s widely thought that the hurricane has spared Gulf Coast oil production facilities from any significant damage. In terms of supply, US crude stocks rose 5.5mln barrels last week, compared with market expectations for a drawdown of 1.5mln barrels, according to the American Petroleum Institute (API) who issued the data after the market close. October WTI prices have pared back from highs of $96.30 during Asian traded hours to hold at session lows of $95.73 a barrel, with the market currently trading $95.92, down 41 cents on the session.
EasyForexNews Research Team