Oil prices fall sharply

Published August 29, 2008

LONDON, Aug 28: Oil prices dropped sharply on Thursday on profit-taking but were expected to rebound as Tropical Storm Gustav moved across the Gulf of Mexico towards oil and gas facilities, traders said.

Oil prices rose earlier on Thursday on concerns the storm could hit production and rising tensions between Russia and the West over Georgia.

New York’s main contract, light sweet crude for delivery in October, stood at $114.90 per barrel, down $3.25 from Wednesday’s close.

London’s Brent North Sea crude for October shed $2.68 to $113.54, having earlier Thursday spiked above $118.

“I’m sure it’s profit-taking” behind the fall in prices, said Excel Futures president Mark Waggoner, cited by Dow Jones Newswires.

“It’s probably momentary. I think it’s going to run right back up because of” Gustav, he added.

“Oil markets are waiting for Gustav,” said PetroMatrix analyst Olivier Jakob.

“It is still potentially going towards the oil assets of the US Gulf but current forecasts are not showing it to be the mother of all hurricanes.”

The Gulf of Mexico accounts for 26 per cent of US crude production and 11 per cent of natural gas output.

In 2005, hurricanes Katrina and Rita damaged or destroyed about 165 oil platforms of about 4,000 located in the Gulf.—AFP

Opinion

Editorial

Taking cover
Updated 09 Jan, 2025

Taking cover

IT is unfortunate that, instead of taking ownership of important decisions, our officials usually seem keener to ...
A living hell
09 Jan, 2025

A living hell

WHAT Donald Trump does domestically when he enters the White House in just under two weeks is frankly the American...
A right denied
09 Jan, 2025

A right denied

DESPITE citizens possessing the constitutional and legal right to access it, federal ministries are failing to...
Closed doors
Updated 08 Jan, 2025

Closed doors

The nation’s fate has been decided through secret deals for too long, with the result that the citizenry has become increasingly alienated from the state.
Debt burden
08 Jan, 2025

Debt burden

THE federal government’s total debt stock soared by above 11pc year-over-year to Rs70.4tr at the end of November,...
GB power crisis
08 Jan, 2025

GB power crisis

MASS protests are not a novelty in Pakistan, and when the state refuses to listen through the available channels —...