Oil prices continue downward movement as storm relief efforts accelerate

13-Sep-05

Led by falling gasoline futures, crude oil prices dipped in response to accelerated relief efforts post-Katrina. Light sweet crude for October delivery fell to US$62.60 a barrel in midday trading on the New York Mercantile Exchange. Brent crude for October delivery fell to US$61.35 a barrel on the IPE. Gasoline futures dipped to US$1.8775 a gallon, while heating oil fell to US$1.8200 a gallon. Both U.S. and Asian markets are straining under high retail oil prices. Record high prices could drop sharply in the coming weeks as gasoline imports begin to flow in and demand eases at the end of summer driving season. This week's inventory report from the U.S. is expected to contain bullish numbers. OPEC member still have sizeable remaining spare crude-oil production capacity, and is considering an increase at its next meeting on Sept. 19 to ease the tight global supply situation in the wake of hurricane Katrina.