Energy traders batten down for Gustav’s arrival

Concerns that a powerful tropical storm could affect oil and gas production in the Gulf of Mexico ensured upward pressure on energy prices throughout this week.

Tropical storm Gustav was expected to regain hurricane strength this weekend and threatened to cause the most disruption to oil production in the Gulf of Mexico since hurricane Katrina struck with such devastating force in 2005.

Nymex October West Texas Intermediate traded in a range between $115 and $118.76 yesterday before settling 13 cents lower at $115.46 a barrel, up 0.7 per cent this week. ICE October Brent was down 12 cents at $114.05 a barrel, up 0.2 per cent this week.

Financial Times