Falling Price of Oil Raises Relief Hopes

Monday, August 21, 2006
Petroleum prices have drifted down toward $70 a barrel in recent days from a record high last month, as the summer driving season comes to a close. Does this mean crude oil could fall to as low as $60 a barrel? Or is it more likely to reverse course and climb toward $80? The price of gasoline at the pump is largely determined by the price of petroleum in the global market place, and a variety of difficult-to-predict factors, only starting with global demand, influences oil's trading value. U.S. demand for oil often weakens in early autumn as the vacation season ends and the winter heating oil season has yet to begin. But it also is hurricane season, which is a significant wild card. Then there is the state of global geopolitical tensions and the trajectory of the world's economy, both of which go a long way toward determining the future price of oil. Of all the possible variables, weather may be the key, believes James Cordier, head trader of Liberty Trading Group. In August 2005, Hurricanes Katrina and Rita wrecked wells and refineries along the Gulf Coast, cutting output sharply from one of the most productive petroleum regions in North America. The price of oil jumped as a result. By this time a year ago, the Atlantic Ocean had seen five hurricanes. So far this year, no hurricanes have formed. Hurricane damage from last year still is being repaired. On Thursday, for example, Total SA, a major French oil company, announced that it finally was restarting its Matterhorn offshore oil platform, which had been badly damaged. The Matterhorn, located 99 miles southeast of New Orleans, is able to produce 33,000 barrels of oil a day. The benchmark price of crude oil closed at $70.06 a barrel, down $1.83 on Thursday, well below the record $77.03 close of July 14. Oil last closed below $61 on March 21. In Illinois, the average price of regular gasoline Thursday was $3.13, below the record of $3.20 set Aug. 8, according to the AAA auto club. A year ago it was $2.684. Pump prices in the city of Chicago are significantly higher because of taxes and other factors. Source: Tribune

Maritime Today

The Maritime Industry's original and most viewed E-News Service

Maritime Reporter November 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds


When Conducting Investigations Consider 'Privileges'

Whether voluntarily or as required by the International Safety Management Code, the American Waterways Operators’ (AWO) Responsible Carrier Program, or some other rule or regulation,

Deepwater Downturn: Bump in the Road or Long-Term Slowing of Growth?

IMA/World Energy Reports has just completed a comprehensiveassessment of the five year outlook for the deepwater sector.  The new report – the 19th annual floater

North Group Increases Projected Free Reserve

Directors of the North P&I Club and Sunderland Marine Insurance Company (North Group) have revised their projection for the group’s year-end free reserve up to $380 million,

Maritime Careers / Shipboard Positions Maritime Contracts Naval Architecture Navigation Pod Propulsion Salvage Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0946 sec (11 req/sec)