Crude Oil Declines on Minor Gordon Impact
The October WTI futures price fell $1.15 for the day, settling at $68.72. The benchmark traded from an intraday high of $69.59 down to $68.59 Wednesday. The November Brent contract lost 90 cents to settle at $77.27.
Crude oil declined Wednesday as traders acknowledged Tropical Storm Gordon’s minor impact to oil and gas infrastructure in the Gulf of Mexico and along the Central Gulf Coast. Gordon made landfall shortly after 10 p.m. Central time Tuesday just west of the Mississippi-Alabama border, the National Weather Service’s National Hurricane Center reported. According to the center, the storm failed to achieve Category 1 hurricane intensity and quickly weakened as it moved inland on a northwesterly track.
As a Reuters article posted to Rigzone earlier Wednesday states, concerns about Gordon’s impact on the oil and gas sector quickly diminished as well. Although Gordon’s impact on the oil and gas industry was minor, multiple media outlets reported that the storm upended a tree in Pensacola, Fla., that caused the death of a child.
The front-month Henry Hub natural gas contract slipped three cents to settle at $2.795. Also falling three cents was October reformulated gasoline, which ended Wednesday’s session at $1.96 a gallon.
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