Oil prices dropped below US$59 a barrel in Asian trade yesterday after Hurricane Dennis, which wreaked havoc in the US, missed Gulf of Mexico refining facilities, dealers said.
At 4pm, the benchmark New York contract for light sweet crude in August, was at US$58.79 a barrel, down US$0.84 from its closing price of US$59.63 in the US on Friday.
The factor having the most impact on the market yesterday was the Gulf of Mexico refineries escaping Hurricane Dennis, according to Victor Shum, a Singapore-based analyst with US energy consultancy Purvin and Gertz.
"The storm had an effect more on the east coast, fortunately leaving the refining facilities undamaged," Shum said.
Hurricane Dennis hit the US on Sunday, killing at least one person after claiming 16 lives in the Caribbean.
US President George W. Bush declared Florida, Alabama and Mississippi to be in a state of "major disaster" because of the hurricane.
A similar hurricane, Ivan, hit Gulf of Mexico facilities last year, sending global oil prices spiralling upwards at the time.
Shum said he expected prices to continue falling into US trade later yesterday but with the continued concerns over tight global supply, prices would stay near record highs in the short term.
Shum also said the market would remain volatile, after prices hit a record high of US$62.10 on Thursday, then plunged US$4.08 following the terrorist bombings in London before climbing back towards US$60 again.
"The market will continue to be volatile and react to short-term news ... I would expect the market to trade within the same range as last week," he said.
"Overall, the market remains bullish [positive on prices] because of supply tightness concerns, particularly for the last quarter of the year [when the northern hemisphere winter begins]," Shum said.
The Central Weather Administration (CWA) yesterday said it expected to issue a sea warning for Typhoon Fung-Wong tomorrow, which it said would possibly make landfall near central Taiwan. As of 2am yesterday, Fung-Wong was about 1,760km southeast of Oluanpi (鵝鑾鼻), Taiwan’s southernmost point, moving west-northwest at 26kph. It is forecast to reach Luzon in the northern Philippines by tomorrow, the CWA said. After entering the South China Sea, Typhoon Fung-Wong is likely to turn northward toward Taiwan, CWA forecaster Chang Chun-yao (張峻堯) said, adding that it would likely make landfall near central Taiwan. The CWA expects to issue a land
The Central Weather Administration (CWA) yesterday said it is expected to issue a sea warning for Typhoon Fung-wong this afternoon and a land warning tomorrow. As of 1pm, the storm was about 1,070km southeast of Oluanpi (鵝鑾鼻), Taiwan’s southernmost point, and was moving west-northwest at 28 to 32kph, according to CWA data. The storm had a radius of 250km, with maximum sustained winds of 173kph and gusts reaching 209kph, the CWA added. The storm is forecast to pass near Luzon in the Philippines before entering the South China Sea and potentially turning northward toward Taiwan, the CWA said. CWA forecaster Chang Chun-yao (張峻堯) said
PREPARATION: Ferry lines and flights were canceled ahead of only the second storm to hit the nation in November, while many areas canceled classes and work Authorities yesterday evacuated more than 3,000 people ahead of approaching Tropical Storm Fung-wong, which is expected to make landfall between Kaohsiung and Pingtung County this evening. Fung-wong was yesterday morning downgraded from a typhoon to a tropical storm as it approached the nation’s southwest coast, the Central Weather Administration (CWA) said, as it issued a land alert for the storm. The alert applies to residents in Tainan, Kaohsiung, Pingtung and Taitung counties, and the Hengchun Peninsula (恆春). As of press time last night, Taichung, Tainan, Kaohsiung, and Yilan, Miaoli, Changhua, Yunlin, Pingtung and Penghu counties, as well as Chiayi city and county had
The Central Weather Administration (CWA) yesterday issued a sea alert for Typhoon Fung-wong (鳳凰) as it threatened vessels operating in waters off the Pratas Islands (Dongsha Islands, 東沙群島), the Bashi Channel and south of the Taiwan Strait. A land alert is expected to be announced some time between late last night and early this morning, the CWA said. As of press time last night, Taoyuan, as well as Yilan, Hualien and Penghu counties had declared today a typhoon day, canceling work and classes. Except for a few select districts in Taipei and New Taipei City, all other areas and city
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