Oil prices slipped below US$75 a barrel on Friday as supply concerns eased, after a storm in the Caribbean weakened and appeared to no longer threaten Gulf coast oil facilities.
Prices remained high, though, and are subject to big swings as traders monitor various factors that could affect supply, such as the potential for storms in the Gulf, record temperatures throughout the US, violence in the oil-rich Middle East and political strife in Nigeria, Africa's biggest oil producer.
Also keeping crude above the US$70-a-barrel level is strong energy demand in the US and other countries, especially China, despite soaring prices. The Energy Department said in its weekly petroleum report on Wednesday that US gasoline demand is still above year-ago levels.
Light sweet crude for delivery next month dropped US$0.70 to settle at US$74.76 a barrel Friday on the New York Mercantile Exchange. The contract is still up about 2 percent on the week.
September Brent crude drop-ped US$0.39 to settle at US$76.17 a barrel on London's ICE Futures exchange.
Nymex gasoline futures fell US$0.0612 to settle at US$2.2315 a gallon and heating oil dropped US$0.0239 to settle at US$2.0896 a gallon.
Still, US drivers were paying on average more than US$3 for a gallon of regular unleaded gasoline on Friday, AAA said.
Recent rises in energy futures prices had largely been driven by fears that Tropical Storm Chris could become the first major hurricane of the season and damage or disable Gulf Oil facilities. But the storm weakened on Friday as it swept through the eastern Caribbean.
Analysts noted, however, that the markets would monitor the storm into the weekend in case of any change in status.
In other Nymex trading on Friday, natural gas fell US$0.046 to settle at US$7.246 per 1,000 cubic feet after the release of natural gas inventory figures for last week.
The Energy Department reported on Thursday that natural gas in underground storage for the week ending July 28 rose 19 billion cubic feet from the previous week to 2,775 billion cubic feet. Stocks were well above the 5-year average of 2,328 billion cubic feet.
Natural gas futures soared well above US$8 earlier in the week as searing heat in some parts of the US put pressure on electricity grids, forcing utility companies to use more natural gas to meet demand.
Natural gas is especially susceptible to weather, said Oppenheimer & Co analyst Fadel Gheit, because it cannot be imported as easily as crude oil, and thus the country depends almost exclusively on its own production and underground storage.
Natural gas prices have climbed by about 50 percent over the past five months, but they are still well below their all-time high above US$14 per 1,000 cubic feet reached last October, in the wake of hurricanes Katrina and Rita.
Gheit said it's improbable that natural gas will reach those heights anytime soon unless the Gulf Coast -- which accounts for about a quarter of US natural gas production and about 10 percent of US oil production -- is struck by huge storms like last year. He expects natural gas futures will be trading above US$10 per 1,000 cubic feet by December.
Meanwhile, Iran's deputy oil minister, on a visit to India, said international crude oil prices could hit US$100 a barrel, driven by political upheaval and an expected winter spike in demand, Dow Jones Newswires reported.
In southern Nigeria on Friday, three Filipinos working for the US construction firm Baker Hughes Inc were kidnapped, a day after a German was abducted in a region where the handling of oil revenue has caused strife between multinationals and local communities.
Also keeping a high floor under prices is fighting between Israel and Hezbollah in southern Lebanon, as well as Iran's commitment to continue its nuclear enrichment program.
Among the rows of vibrators, rubber torsos and leather harnesses at a Chinese sex toys exhibition in Shanghai this weekend, the beginnings of an artificial intelligence (AI)-driven shift in the industry quietly pulsed. China manufactures about 70 percent of the world’s sex toys, most of it the “hardware” on display at the fair — whether that be technicolor tentacled dildos or hyper-realistic personalized silicone dolls. Yet smart toys have been rising in popularity for some time. Many major European and US brands already offer tech-enhanced products that can enable long-distance love, monitor well-being and even bring people one step closer to
Malaysia’s leader yesterday announced plans to build a massive semiconductor design park, aiming to boost the Southeast Asian nation’s role in the global chip industry. A prominent player in the semiconductor industry for decades, Malaysia accounts for an estimated 13 percent of global back-end manufacturing, according to German tech giant Bosch. Now it wants to go beyond production and emerge as a chip design powerhouse too, Malaysian Prime Minister Anwar Ibrahim said. “I am pleased to announce the largest IC (integrated circuit) Design Park in Southeast Asia, that will house world-class anchor tenants and collaborate with global companies such as Arm [Holdings PLC],”
TRANSFORMATION: Taiwan is now home to the largest Google hardware research and development center outside of the US, thanks to the nation’s economic policies President Tsai Ing-wen (蔡英文) yesterday attended an event marking the opening of Google’s second hardware research and development (R&D) office in Taiwan, which was held at New Taipei City’s Banciao District (板橋). This signals Taiwan’s transformation into the world’s largest Google hardware research and development center outside of the US, validating the nation’s economic policy in the past eight years, she said. The “five plus two” innovative industries policy, “six core strategic industries” initiative and infrastructure projects have grown the national industry and established resilient supply chains that withstood the COVID-19 pandemic, Tsai said. Taiwan has improved investment conditions of the domestic economy
Sales in the retail, and food and beverage sectors last month continued to rise, increasing 0.7 percent and 13.6 percent respectively from a year earlier, setting record highs for the month of March, the Ministry of Economic Affairs said yesterday. Sales in the wholesale sector also grew last month by 4.6 annually, mainly due to the business opportunities for emerging applications related to artificial intelligence (AI) and high-performance computing technologies, the ministry said in a report. The ministry forecast that retail, and food and beverage sales this month would retain their growth momentum as the former would benefit from Tomb Sweeping Day