Originally published November 28 2005
Price of gas steadily falling
by Mike Adams, the Health Ranger, NaturalNews Editor
Hurricane Wilma failed to hurt the supply side of the Gulf Coast oil industry, and the price of barrels continues to decline, though experts predicts a harsh winter may bring prices back up.
Crude futures fell Monday but closed near the session's highest level -- supported by forecasts for colder U.S. weather, but pressured by the apparent lack of new hurricane damage to major energy output facilities in the Gulf of Mexico.
"The oil market seems confident that [Hurricane Wilma] will not damage any oil infrastructure," said Phil Flynn, a senior analyst at Alaron Trading.
"In fact, the market seems to think that the storm could have an adverse effect on demand."
Last week, the market was relieved to see a build in gasoline inventories, but refiners will stop producing as much gasoline in favor of producing heating oil, he said.
Given that, the market -- at least for now -- should enjoy this "temporary break in prices," he said.
November heating oil lost 6.92 cents to finish at $1.7973 a gallon and November unleaded gasoline closed at a three-month low of $1.5816 a gallon, down 5.83 cents.
With Wilma steering clear of the major oil and natural-gas facilities in the Gulf, the energy market wasn't expecting much, if any, new or lasting damage to output.
Close to 68% of daily Gulf of Mexico oil production was shut in as of Monday, compared with 65.8% on Friday, according to the Minerals Management Service.
Workers at Total SA's (TOT) Normandy refinery, which refines more than 300,000 barrels a day of oil, suspended their five-week strike.
Rounding out the energy action Monday, weather forecasts provided support for natural gas, lifting its November contract 13.2 cents higher to close at $13.004 per million British thermal units.
Tracking the broader equities sector Monday, energy stocks climbed, with the Amex Natural Gas Index ($XNG) leading the sector-tracking benchmark higher.
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