Brent below $109 as hurricane shuts refineries
Washington, October 29, 2012
Brent crude oil fell below $109 a barrel on Monday as refineries along the US East Coast wound down operations ahead of the approach of Hurricane Sandy, reducing crude use in the world's largest oil consumer.
The second-largest refinery on the US East Coast began shutting down on Sunday and three other plants cut output as the storm, which forecasters say could be the largest ever to hit the US mainland, threatened power outages and a massive storm surge across the region.
Brent futures for December dropped $1.04 to a low of $108.51, before recovering slightly to around $108.90 by 0900 GMT. Brent posted a 0.5 percent loss last week.
US crude was down 78 cents at $85.50. "With refineries cutting runs, we're likely to see a build-up in crude stocks which could be driving bearish prices at the moment," said Michael Creed, an economist at National Australia Bank in Melbourne.
Oil also came under pressure from falling stock markets as investors focused on weak corporate earnings.
The FTSE Eurofirst 300 index index of top European shares followed Asian markets lower, dropping 0.2 per cent in early trade.
London's FTSE 100, Paris's CAC-40 and Frankfurt's DAX opened down between 0.3 and 0.7 per cent.
The euro fell 0.3 per cent to $1.2890, at the lower end of its recent broad range between $1.28 and $1.31, waiting for bailout prospects for Spain and Greece to become clear.
"It is a risk off day," said Eugen Weinberg, head of commodities research at Germany's Commerzbbank in Frankfurt.
"Risk aversion is rising in all markets and investors are increasingly focusing on slow global economic growth," he added.-Reuters
More Energy, Oil & Gas Stories
- ME oil, gas transaction value up 15pc
- Victrex to showcase new product in Paris
- Aramco JV puts off giant refinery overhaul to 2015
- Libya threatens to bomb N Korean tanker
- Bahrain 'producing 850MW of surplus power'
- 2,000 experts for Bahrain geosciences summit
- Libyan rebels start oil exports, bypassing govt
- Dubai drilling company set for London IPO
- Opec output soars on higher Iraq exports
- S Korea to pay Iran $550m under nuke deal
- Qatar LPG exports will stay unchanged till 2018
- $14bn Bahrain energy sector focus for summit
- Iraq now world's fastest-growing oil exporter
- Old IT systems pose risk to oil firms
- Thomson Reuters adds commodity monitoring tool
- Oil below $90 to hit GCC economies
- GlassPoint appoints new Oman director
- Sheffield company opens Dubai hub
- Oman targets big rise in gas output
- Intertek buys UAE firm for $66m
- Qaiwan to tender Baizan refinery EPC contract
- Al Maha wins Oman Air fuel supply deal
- Iran to become top gas importer by 2025
- UAE hydrocarbon projects seen hitting $11bn
- Summit focus on occupational safety
- Aramco names new senior VP
- Siemens gets $253m Qatar power contract
- Taqa-led group's India deal worth $1.6bn
- Taqa-led group to buy India power plants
- Iraq oil exports hit record 2.8m bpd