The hurricanes in the Gulf of Mexico have not caused major supply disruptions. This became evident in the US Department of Energy's weekly report on petroleum stocks, which recorded a build in distillate fuels, including heating oil, diesel and jet fuel. Distillates grew by 2.3 million barrels to 122.7 million barrels, or 5% above year ago levels. Crude inventories also showed a less than expected decline slipping by 900,000 barrels to 320.1 million barrels, or 7% above year ago levels. A rise in stocks has clearly eased concerns of supply. In New York, the August delivery price settled almost 75 cents lower at US$56.72 a barrel. Will these price declines over the past two days translate into "a positive start" to price stabilization.
With Emily missing to the south and Tropical Depression no. 6 taking a northern track, concerns about hurricanes may ease for the moment. Oil workers have started returning to the rigs in the southern Gulf of Mexico, and Mexican state oil monopoly Petroleos Mexicanos had opened its 3 main loading ports on Wednesday.
Prices are over 35% higher than a year ago, but more than US$4 off record intraday price of US$62.10 a barrel as on July 7. In 1980, prices rose to a inflation-adjusted US$90.
21-Jul-05 
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