Monday 29 August 2011

Hellish Hurricane in New York City Affecting Crude Oil

Eastern Canada witnessed a tropical and then post-tropical storm with heavy rains and winds, that killed more than 20 people in the US. Five million homes were rendered powerless while businesses were choked with floods everywhere. Though New York expected a recovery of train services, it was definitely a slow one. Most of the rail services that started from the north were out. Even though Wall Street and ground zero, preparing for 10th anniversary of September attacks, were largely unaffected, business was low. Markets traded lower volumes.
London Brent Crude for October delivery was low by 23 cents and was at $111.13 on the Futures exchange, ICE. There are so far no reported damages to oil refineries. The hurricane is expected to impact the local regional activities depending on power, as it could take a little longer than expected to recover.
Crude traded close to $85 in the past week, after moving between, $84 to $115, with evidences for an economic slowdown severing further. The National Hurricane Center reported that the hurricane sustained a speed of 50 mph while they approached the Canadian border.
World stock markets however rose, amidst this natural phenomenon. The comments by Federal Reserve Chairman Ben Bermanke were the prime reason behind it. He expected a help from the government in his Wyoming speech on stimulating economy from recession.
Heating oil fell to #3.01 per gallon in Nymex trading for October while gasoline futures dropped off to $2.76 a gallon.

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