Christian Schmollinger and Nesa Subrahmaniyan
Wednesday, July 23, 2008
Crude oil fell for a second day in New York after forecasters expect Hurricane Dolly to miss fields in the Gulf of Mexico and the dollar rebounded, curbing investments in commodities.
Dolly is headed for northern Mexico and southern Texas, and the dollar gained against the euro on signs U.S. interest rates may increase. Oil futures have declined more than 15 percent from a record $147.27 a barrel on July 11 as U.S. gasoline use fell for a 13th consecutive week.
“There’s a sense of relief from a hurricane track that keeps the Gulf oil production in pretty good shape,” said Gerard Burg, energy and minerals economist with National Australia Bank Ltd. in Melbourne. “We’ve seen that prices near $150 were near the top of what consumers are willing to accept.”
(Article continues below)
Crude oil for September delivery fell as much as $1.77 cents, or 1.4 percent, to $126.65 a barrel, and traded at $127.17 at 3:10 p.m. Singapore time on the New York Mercantile Exchange. Futures are up 70 percent from a year ago. The August contract expired yesterday after declining 2.4 percent to $127.95 a barrel, the lowest settlement price since June 5.
“That’s been a realization to the market that prices reached the top of what could be accepted in the short term,” said National Australia’s Burg.
This article was posted: Wednesday, July 23, 2008 at 4:11 am