By OGJ editors
HOUSTON, Sept. 5 -- Crude oil prices settled above $75/bbl on the New York Mercantile Exchange on Sept. 4 following reports that a US hurricane forecaster expects a busy end to the storm season.
Hurricane forecaster William Gray of Colorado State University said six more hurricanes are likely this season, and he expects three of those to be major. His comments raised concerns about potential interruptions for Gulf of Mexico oil and gas production.
Gray's comments came the same day that Hurricane Felix made landfall as a category 5 storm in Nicaragua's remote northeast corner. Two weeks ago, category 5 Hurricane Dean entered the Bay of Campeche and weakened as it crossed land.
Only recently, Petroleos Mexicanos returned to full production following Hurricane Dean, which forced Pemex to shut down 140 offshore units and move 1,300 workers to land.
On world energy markets, traders generally expect the Organization of Petroleum Exporting Countries will hold production quotas steady in a meeting next week.
Energy prices
The October contract for benchmark US light, sweet crudes gained $1.04 to $75.08/bbl Sept. 4 on NYMEX. The November contract rose 94¢ to $74.26/bbl. On the US spot market, West Texas Intermediate was up $1.03 to $75.085/bbl.
The October contract for reformulated blendstock for oxygenate blending (RBOB) climbed 2.65¢ to $1.99/gal on NYMEX. Heating oil for the same month rose 2.21¢ to $2.0795/gal.
The October natural gas contract increased by 16.1¢ to $5.629/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., gained 9¢ to $5.58/MMbtu.
In London, the October IPE contract for North Sea Brent crude increased 51¢ to $73.92/bbl.
The average price for the OPEC basket of 11 benchmark crudes advanced by 46¢ to $70.78 on Sept. 4.
