Oil prices climbed Tuesday as energy traders kept an eye on supply threats
Tuesday, August 1st, 2006Oil prices climbed Tuesday as energy traders kept an eye on supply threats ranging from a tropical storm in the Caribbean to fighting in the Middle East.
Natural gas futures eased slightly after a heat-induced surge in electricity demand pushed them sharply higher a day earlier.
“We’re moving into a very strong seasonal trend” for energy prices to move higher, said Societe Generale commodities analyst Mike Guido.
Light sweet crude for September delivery rose 35 cents to $74.75 a barrel on the New York Mercantile Exchange, where gasoline futures jumped by more than a nickel to $2.2625 a gallon.
Natural gas futures slid 17 cents to $8.04 per 1,000 cubic feet. On Monday, natural gas futures surged 14 percent to settle at $8.211, the highest close since early February.
Nymex trading was halted for a half hour, beginning at 11 a.m., for a fire drill.
In London, September Brent crude rose 32 cents on the ICE Futures exchange, to $75.47 a barrel.
The U.S. National Hurricane Center said Tropical Storm Chris has formed near the Leeward Islands in the Caribbean, raising traders’ fears that it could strengthen and damage oil platforms and refineries along the Gulf Coast.
“In the back of everybody’s minds is the possibility of getting one or two hurricanes like Katrina, or like Rita,” said Cameron Hanover Inc.’s Peter Beutel. Those storms disrupted oil and natural gas output, as well as oil refining, for months, forcing the U.S. to import large amounts of fuel from Europe.