Crude futures jumped more than US$1 a barrel yesterday, driven up by concerns that a tropical depression brewing in the Caribbean may grow into a hurricane and could threaten the US Gulf of Mexico and oil facilities there.
Light, sweet crude for delivery next month rose US$1.18 to US$63.81 a barrel in Asian electronic trading on the New York Mercantile Exchange. On Friday, the contract slipped US$0.45 to US$62.63 a barrel.
December Brent futures on the International Petroleum Exchange in London rose US$1.10 to US$60.58 a barrel.
Heating oil gained US$0.0455 to US$1.9955 a gallon (3.8 liters) while gasoline climbed US$0.0569 to US$1.8055. Natural gas rose US$0.662 to US$13.881 per 1,000 cubic feet.
Storm warning
Tropical Depression 24, a slow-moving system that formed on Saturday, was expected to become Tropical Storm Wilma, which would make it the 21st named storm of the season, tying the 1933 record for the most storms in an Atlantic season, the US' National Hurricane Center in Miami said on Sunday.
The depression, now centered about 245km southeast of Grand Cayman, Cayman Islands, could grow into a hurricane by today and move into the southeastern Gulf, with winds over 161kph by Friday, the center said.
Most US oil production and refineries are in the central and western Gulf. Forecasting the storm's direction is extremely difficult at this early stage, but traders are nervous about yet more damage to oil facilities after Hurricanes Katrina and Rita.
"The tropical depression is certainly within the radar screens of traders, though it seems to be too early to tell whether it would develop into a storm, and its direction," Victor Shum, energy analyst at Texas-headquartered Purvin & Gertz in Singapore, said.
Winter demand
After surging above US$70 a barrel in late August, oil prices have fallen in recent weeks, although there are plenty of concerns about the pace of recovery following Rita, and whether supplies will be adequate as winter begins in the Northern Hemisphere, when demand for heating oil peaks.
"The market is on edge; it's looking for directions. There's a lot of volatility now, which is characteristic of a tight supply situation," Shum said.
The US federal Minerals Management Service reported on Friday a slight uptick in Gulf of Mexico oil production, putting the amount of shut-in output at about 1 million barrels a day, or 67.3 percent of total daily output, down slightly from the 68.8 percent seen on Thursday.
There was virtually no improvement in natural gas output, with some 5.65 billion cubic feet a day of output off line, or 56.5 percent of the total, the minerals service said in a daily update.
FREEDOM OF NAVIGATION: The UK would continue to reinforce ties with Taiwan ‘in a wide range of areas’ as a part of a ‘strong unofficial relationship,’ a paper said The UK plans to conduct more freedom of navigation operations in the Taiwan Strait and the South China Sea, British Secretary of State for Foreign, Commonwealth and Development Affairs David Lammy told the British House of Commons on Tuesday. British Member of Parliament Desmond Swayne said that the Royal Navy’s HMS Spey had passed through the Taiwan Strait “in pursuit of vital international freedom of navigation in the South China Sea.” Swayne asked Lammy whether he agreed that it was “proper and lawful” to do so, and if the UK would continue to carry out similar operations. Lammy replied “yes” to both questions. The
‘OF COURSE A COUNTRY’: The president outlined that Taiwan has all the necessary features of a nation, including citizens, land, government and sovereignty President William Lai (賴清德) discussed the meaning of “nation” during a speech in New Taipei City last night, emphasizing that Taiwan is a country as he condemned China’s misinterpretation of UN Resolution 2758. The speech was the first in a series of 10 that Lai is scheduled to give across Taiwan. It is the responsibility of Taiwanese citizens to stand united to defend their national sovereignty, democracy, liberty, way of life and the future of the next generation, Lai said. This is the most important legacy the people of this era could pass on to future generations, he said. Lai went on to discuss
AMENDMENT: Climate change is expected to increase the frequency of high-temperature days, affecting economic productivity and public health, experts said The Central Weather Administration (CWA) is considering amending the Meteorological Act (氣象法) to classify “high temperatures” as “hazardous weather,” providing a legal basis for work or school closures due to extreme heat. CWA Administrator Lu Kuo-chen (呂國臣) yesterday said the agency plans to submit the proposed amendments to the Executive Yuan for review in the fourth quarter this year. The CWA has been monitoring high-temperature trends for an extended period, and the agency contributes scientific data to the recently established High Temperature Response Alliance led by the Ministry of Environment, Lu said. The data include temperature, humidity, radiation intensity and ambient wind,
SECOND SPEECH: All political parties should work together to defend democracy, protect Taiwan and resist the CCP, despite their differences, the president said President William Lai (賴清德) yesterday discussed how pro-Taiwan and pro-Republic of China (ROC) groups can agree to maintain solidarity on the issue of protecting Taiwan and resisting the Chinese Communist Party (CCP). The talk, delivered last night at Taoyuan’s Hakka Youth Association, was the second in a series of 10 that Lai is scheduled to give across Taiwan. Citing Taiwanese democracy pioneer Chiang Wei-shui’s (蔣渭水) slogan that solidarity brings strength, Lai said it was a call for political parties to find consensus amid disagreements on behalf of bettering the nation. All political parties should work together to defend democracy, protect Taiwan and resist
RSS