Hurricane Erin Fails to Dampen Oil Price Rally on Nymex

Strategic Insights -

Traders were intent on extending the weeklong rally on the New York Mercantile Exchange (Nymex) as news of Hurricane Erin's waning storm failed to weaken support for oil prices. The rally, which began on July 26 with a 57 cents surge in crude futures, continued unabated, with the September crude contract settling 1 cent down at $17.71/bbl on Friday. Despite the storm's impact on oil production earlier in the week, most companies reported that operations would return to normal over the weekend, further supporting the rally.

Key Takeaways:

  • The New York Mercantile Exchange (Nymex) saw a weeklong rally in oil prices, with crude futures surging 57 cents on July 26.
  • Hurricane Erin's impact on oil production was largely limited, with most companies reporting that operations would return to normal over the weekend.
  • The September crude contract settled 1 cent down at $17.71/bbl on Friday, with traders citing a lack of fresh fundamental news.
  • OPEC members' modest quota-busting in July was largely forgiven by the market, with production figures released on Friday showing output at 24.5 million b/d, 700,000 b/d above the ceiling.
  • The September gasoline contract on Nymex settled up 0.04 cents at 53.97 cents/gallon, near the upper end of its trading range.
  • The September No. 2 heating oil contract on Nymex settled down 0.06 cents at 49.18 cents/gallon.

Statistics:

  • Nymex crude futures surged 57 cents on July 26, marking the beginning of a weeklong rally.
  • The September crude contract settled 1 cent down at $17.71/bbl on Friday, despite the waning storm forecast.
  • OPEC's July production figures showed output at 24.5 million b/d, 700,000 b/d above the 24.52 million b/d ceiling.
  • The September gasoline contract on Nymex settled up 0.04 cents at 53.97 cents/gallon.
  • The September No. 2 heating oil contract on Nymex settled down 0.06 cents at 49.18 cents/gallon.

Sources:

  • Reuters (no date mentioned)
  • EIA (no date mentioned)
  • Other sources not explicitly mentioned in the text