Oil prices higher on tropical storm concerns
Thursday, 16 August 2007
SINGAPORE, Aug 15 (AFP): Oil prices rose today on concerns over a tropical storm building in the Atlantic and the potential danger posed to US energy facilities, dealers said.
New York's main contract, light sweet crude for September delivery gained 37 cents to 72.75 US dollars a barrel from 72.38 late Tuesday.
Brent North Sea crude for September delivery rose 35 cents to 70.86 dollars.
"The oil market went from worrying about the swirling financial storm to worrying about the development of a potential tropical storm," said Phil Flynn, an analyst with Alaron financial firm.
"Any storm that slows refining and production will not be welcome."
OPEC's estimates of stronger global oil demand in 2007 was also keeping prices firmer, dealers said.
The Organisation of the Petroleum Exporting Countries said in a monthly report Tuesday that world oil demand growth in 2007 was forecast at 1.3 million barrels per day, or 1.5 per cent.
That was "slightly higher" than the estimate given last month and reflected "additional oil needs for Japanese power plants," the OPEC report said.
However, OPEC noted that "over the last four weeks, prices for (New York) crude oil have exhibited extreme volatility," as the world economy has experienced stock market and other economic fluctuations.
"There is no doubt that the above uncertainties have clouded the outlook for oil demand," OPEC said.
It added that US economic problems such as the "recession in the housing sector, in particular the sub-prime mortgage market" have precipitated "fears of a global economic slowdown."
The US government's Climate Prediction Center predicted last week that a total of 13 to 16 tropical storms were expected to form in the Atlantic basin this year, with seven to nine becoming hurricanes.
The US Atlantic hurricane season began on June 1, but experts point out that cyclonic activity typically peaks between August and October.
New York's main contract, light sweet crude for September delivery gained 37 cents to 72.75 US dollars a barrel from 72.38 late Tuesday.
Brent North Sea crude for September delivery rose 35 cents to 70.86 dollars.
"The oil market went from worrying about the swirling financial storm to worrying about the development of a potential tropical storm," said Phil Flynn, an analyst with Alaron financial firm.
"Any storm that slows refining and production will not be welcome."
OPEC's estimates of stronger global oil demand in 2007 was also keeping prices firmer, dealers said.
The Organisation of the Petroleum Exporting Countries said in a monthly report Tuesday that world oil demand growth in 2007 was forecast at 1.3 million barrels per day, or 1.5 per cent.
That was "slightly higher" than the estimate given last month and reflected "additional oil needs for Japanese power plants," the OPEC report said.
However, OPEC noted that "over the last four weeks, prices for (New York) crude oil have exhibited extreme volatility," as the world economy has experienced stock market and other economic fluctuations.
"There is no doubt that the above uncertainties have clouded the outlook for oil demand," OPEC said.
It added that US economic problems such as the "recession in the housing sector, in particular the sub-prime mortgage market" have precipitated "fears of a global economic slowdown."
The US government's Climate Prediction Center predicted last week that a total of 13 to 16 tropical storms were expected to form in the Atlantic basin this year, with seven to nine becoming hurricanes.
The US Atlantic hurricane season began on June 1, but experts point out that cyclonic activity typically peaks between August and October.