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crude oil price up again

NEW YORK (MarketWatch) - Tropical Storm Ernesto continued to gather force and is expected to continue strengthening over the weekend, the National Hurricane Center said early Saturday. Read the latest advisory.

A tropic storm warning remains in effect for the south coast of Hispaniola and a warning will likely be required for Jamaica later Saturday, the NHC said.

Forecasts indicated that Ernesto, formed in the Caribbean Sea on Friday, will be a Gulf of Mexico hurricane by Tuesday, according to meteorologists at weather.com.

Ernesto was located about 245 miles south-southwest of Santo Domingo, the capital of the Dominican Republic and about 455 miles east-southeast of Kingston, the capital of Jamaica, the NHC said this morning.

Ernesto is moving toward the west-northwest at near 15 miles per hour. Maximum sustained winds have increased to near 50 miles per hour. Additional strengthening is forecast during the next 24 hours, NHC said.

This year's North Atlantic hurricane season has been uneventful so far, but the possibility of a tropical storm reaching the Gulf reminded investors about the damage of supply inflicted by Katrina and Rita last year. Ernesto could develop into the first hurricane of the 2006 Atlantic hurricane season.

 

SAN FRANCISCO (MarketWatch) -- Crude-oil futures closed modestly higher Friday, but natural-gas prices scored a gain of over 6% for the week as forecasters predicted that a tropical storm in the Caribbean has the potential to threaten the Gulf of Mexico and disrupt energy production.

"Storm watch 2006 has begun," said Phil Flynn, a senior analyst at Alaron Trading in Chicago.

Late Friday the U.S. National Hurricane Center said tropical storm Ernesto, with winds around 40 miles per hour, could threaten Jamaica and the Cayman islands over the weekend. Read the latest advisory.

"If the storm intensifies over the weekend, Sunday night's electronic trade could open sharply higher."

"Ernesto could potentially form into a ... hurricane by early next week, but could be wiped out by dry air in the region just as well," said Ronald Barone, an analyst at UBS.

A tropical storm watch for Haiti and Jamaica has been issued, the NHC said in a 5 p.m. Eastern time report Friday. "Additional strengthening is possible during the next 24 hours," it said.

The 2006 hurricane season, which ends officially on Nov. 30, has gotten off to a "much slower start" than last year, he said.

 

Hurricane Ernesto coming next week? .... :(

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"Bad weather brewing in the eastern Caribbean Sea could be dubbed Tropical Storm Ernesto later on Friday and could grow into a full-fledged hurricane by next week, forecasters said. "

 

The higher crude oil price go up, the higher the chance of the US going into recession. As it is, the possibility of the US economy going into recession is already half full

 

SAN FRANCISCO (MarketWatch) -- Crude-oil futures climbed to a more than one-week high and natural-gas prices climbed as much as 6% on Friday as forecasters said a tropical depression over the Atlantic has the potential to reach the Gulf of Mexico and disrupt energy production.

"Storm watch 2006 has begun," said Phil Flynn, a senior analyst at Alaron Trading in Chicago.

October-dated crude-oil contracts were up $1.29, or 1.7%, at $73.65 a barrel on the New York Mercantile Exchange, following a peak of $73.75 -- the highest level its seen since Aug. 16. The contract closed out last week at $72.10.

Other petroleum contracts also rose, with September gasoline futures up 4.75 cents at $1.909 a gallon and September heating oil up 5.21 cents at $2.0815 a gallon.

Natural gas for September delivery tacked on 37.1 cents to stand at $7.45 per million British thermal units, after a two-week high of $7.52. The contract ended last Friday at $6.731, so it's trading more than 10% higher so far for the week.

According to a 5:30 a.m. Eastern update from the National Hurricane Center, a tropical depression that's south of San Juan, Puerto Rico may turn into a tropical storm.

The depression, which will be named Ernesto if upgraded to tropical storm status, is headed toward the Gulf of Mexico, according to a wind speed probability map from the forecaster.

For natural gas, it "is not a storage issue, but it is indeed a production issue," said Flynn.

"Environmental conditions are forecast to become more supportive for continued development [of the tropical depression], and a track threatening the Gulf of Mexico by early next week is possible," according to The Weather Channel. "For now, interests along the Gulf coast states should simply monitor and be aware of the system."

 

Oil leapt US$1 on Friday as a storm brewing in the Caribbean threatened to sweep through the U.S. Gulf next week and menace oil supplies yet to recover from last year's hurricanes.
 


Support also came from Iran's nuclear row with the West that could prompt United Nations sanctions against the world's fourth-largest oil exporter, although Russia ruled out such punitive action for now.



U.S. crude was up US$1.13 at US$73.49 a barrel by 0948 GMT, after gaining 60 cents on Thursday.



A spinning band of squalls in the Caribbean was on the verge of becoming Tropical Storm Ernesto and was expected to head northwest toward the Gulf of Mexico by the middle of next week.



A surge in demand in China, the world's second biggest fuel burner, also underpinned oil's rise.



Demand in China rose 12.2% in July yoy, Reuters calculations showed on Friday, a fourth month of double-digit expansion fueled by a hot summer and booming car industry.



On the year, U.S. crude is up about 20% after a prolonged supply outage from Nigeria and fears that Iran will withhold exports in retaliation to U.N. sanctions.



The five permanent members of the Security Council - the United States, France, Britain, China and Russia - along with Germany, have threatened sanctions against Iran if it does not suspend uranium enrichment by August 31.



They offered Tehran a package of incentives for giving up its atomic work. Iran this week offered to hold talks on its nuclear programme, but its response has not fully satisfied the United States, Germany and France.



Moscow on Friday ruled any discussion now of sanctions against Iran, saying these had proved ineffective in the past and there was still room for diplomacy.

 

Oil is stablizing around US$71/barrel on concern of Iran nuclear issue.

 

   Good news. Let it go down to US$60.

 

U.S. crude oil futures sunk as low as $70.00 during the day, the lowest since June 21. U.S. crude had tumbled more than 7%, declining in six out of eight sessions until Thursday's market close.

 

U.S. light, sweet crude for September delivery dropped $1.02 to $70.87 a barrel by 6 a.m. ET, its lowest since June 26.(more)

 

 

Crude-oil prices dropped more than a dollar a barrel as traders responded to a report of above-average U.S. oil stockpiles and a lack of bad news to drive prices higher.



At late morning in Europe, light sweet crude for September delivery fell US$1.15 to US$70.74 a barrel in electronic trading on the New York Mercantile Exchange.



Oil prices have steadily fallen this week when supply fears abated after a cease-fire held in Lebanon and BP PLC resumed partial production at its Prudhoe Bay oil field in the U.S. state of Alaska.



Concerns about supply disruptions in Nigeria due to civil unrest are lingering in the market, as are worries over the standoff between the United Nations and Iran over its nuclear program. Iran has said it will respond by Aug. 22 to an offer of incentives in exchange for a pledge to suspend uranium enrichment.



Oil traders are also watching weather patterns for potential hurricanes that could strike Gulf of Mexico coast refineries, as well as signals for where fuel demand is headed.



Oil prices may find support around US$70.

 

This is good news. Hope it will go down further.

 

Oil prices fell for a fourth day on Thursday to their lowest in nearly eight weeks after U.S. data reminded traders that crude stocks are relatively robust and the summer driving season is nearing its end.



U.S. light, sweet crude for September delivery fell 49 cents to US$71.40 a barrel, its lowest since June 26. London Brent was down 48 cents at US$72.35 a barrel.



U.S. crude prices have shed more than 7% after falling for six of the last eight sessions as a ceasefire took hold in the Middle East and BP decided to shut in only half of its 400,000-barrels-per-day (bpd) Prudhoe Bay oilfield.

 

Singapore estimate time 23:00 ( At 11 a.m. ET)

Oil was down 60 cts to $72.45/barrel on the New York Mercantile Exchange. Crude was 35 cents lower just prior to the report's release.

 

Prices have slumped from above $77 a barrel a week ago , oil continue to fall and Dow continue it climb.

 

Oil sinks below $73 (Link)

Oil fell below $73 a barrel Wednesday, continuing a slide started as supply fears eased and which outweighed expectations for another drop in U.S. crude and gasoline stocks.

U.S. light, sweet crude for September delivery fell 23 cents at $72.82 a barrel in early morning trade. Prices fell for the third-straight session Wednesday and are near Monday's $72.60 intra-day low, the weakest since July 20.

 

U.S. light crude eased 48 cents to $73.05 a barrel in electronic, sort of a good new to all.

 

Oil fall to US$73.16 and Nikkei is into +ve. Look  likely to hit another 50 points after it run up yesterday by 260 points.

 

Oil price continue to fall , is down to US$73.60/barrel nad Nikkei is up