Oil price down on Friday morning, October 6, as investors are wary regarding tropical storm “Nate”heading to the Gulf of Mexico, reports RIA “Novosti” with reference to the auction.
As at 08:05 Moscow time the cost of December futures for North sea petroleum mix of mark Brent has decreased on 0,11%, to 56,94 dollars per barrel. The cost of the November futures for WTI crude oil fell by 0.14% to 50,72 per barrel.
09:50 Moscow time futures on Brent fell to 56.88 per barrel. Futures contracts on the American WTI by this time was trading at 50,63 dollars per barrel, reports Reuters.
The concerns of traders caused approaching Gulf coast storm “Nate”. It was formed on 5 October off the coast of Nicaragua. The wind speed in the storm center reached 64 miles per hour. The storm is moving in a North-westerly direction at a speed of about 12 miles per hour.
It is expected to strengthen to a hurricane. It is now known that the disaster killed at least 22 people, a few missing.
Oil companies operating in the Gulf of Mexico, have already started to prepare for the coming “Nate”. A number of them, including BP, Chevron, ExxonMobil and Statoil, has halted oil production on platforms and evacuated workers.
Bureau of safety and environmental control of the United States (Bureau of Safety and Environmental Enforcement, BSEE) reportsthat the company has stopped the production of 14.55% of production capacity of oil and 6.4% – gas in the Gulf of Mexico in the United States.
Thus, oil production in the region reduced by 254,6 thousand barrels per day. While investors do not exclude that its work in the region will suspend and refineries, which will reduce the demand for raw materials. According to Reuters, Phillips 66 Thursday night has already closed its Alliance refinery in Louisiana, the processing capacity of which is 247 thousand barrels per day.
In August on the U.S. Gulf coast was hit by hurricane “Harvey”. Element destroyed about a quarter of the refining capacity in the United States.