US hurricane and Iran fallout drive global oil price

US hurricane and Iran fallout drive global oil price

The global prices of crude oil have risen the most in a week, as Hurricane Florence threatened US east coast petrol supplies and as sanctions began crimping Iranian oil exports.

Futures in New York climbed 1.5%, as east coast motorists may see “dramatic” spikes in gasoline prices, according to a motoring organisation, and as mass evacuations stretch supplies and Florence’s heavy rains imperil major fuel pipelines.

Meanwhile, France and South Korea are shunning Iranian crude, forcing the Islamic Republic to effectively remove some oil from global markets.

West Texas Intermediate (WTI0 for October delivery climbed $1.12, to $68.66 a barrel, while Brent for November settlement advanced $1.12, to $78.49 a barrel, on the ICE Futures Europe exchange in London).

“There is some in the market who believe we are going to see a significant jump in gasoline prices,” said John Kilduff, a partner at New York-based hedge fund, Again Capital.

“The supportive factors in this market still remain,” Mr Kilduff said.

London-traded Brent, which is more sensitive to global supply disruptions, traded at a more-than-$10-a-barrel premium to the US benchmark crude.

As Florence moves closer to the southeastern coast of the US, the storm appears likely to strengthen, forecasters said.

The hurricane is poised to be the strongest to slam the Carolinas in almost 30 years, according to the US Hurricane Centre.

Petrol futures jumped as much as 2.2%, to $2.0021 a gallon, on the New York Mercantile Exchange.

The global benchmark crude’s premium to WTI for the same month was at $10.03.

Some other key oil-market figures, news, and events:

Washington has told its allies to reduce imports of Iranian oil, and several Asian buyers, including South Korea, Japan, and India appear to be falling in line.

But the US government does not want to push up oil prices, which could depress economic activity or even trigger a slowdown in global growth.

US energy secretary, Rick Perry, met Saudi energy minister, Khalid al-Falih, earlier in the week, in Washington, as the US president, Donald Trump’s administration encourages big oil-producing countries to keep output high.

Mr Perry will meet with Russian energy minister, Alexander Novak, tomorrow, in Moscow.

Russia, the US, and Saudi Arabia are the world’s three biggest oil producers by far, meeting around a third of the world’s almost 100m barrels per day of crude consumption.

Bloomberg and Reuters

More in this Section

Profits up at Dublin Port Tunnel company after surge in traffic volumesProfits up at Dublin Port Tunnel company after surge in traffic volumes

Oliver Managan: No sign of recovery for euro against the dollarOliver Managan: No sign of recovery for euro against the dollar

Tayto Park pre-tax profits fall by 7% despite revenues increaseTayto Park pre-tax profits fall by 7% despite revenues increase

More than 150 jobs lost as Rondo Food closes Arklow plantMore than 150 jobs lost as Rondo Food closes Arklow plant


Lifestyle

As David Attenborough announces new series on plants, we run down some of the weird and wonderful vegetation he might include.11 bizarre plant species from around the world

The weather’s always going to be a key factor on any wedding day — but especially so when the bride works for Met Éireann, writes Eve Kelliher.Wedding of the week: Bride and groom are literally on cloud nine

My wife and I are in our fifties and she has just started using porn. She thinks it will enhance our sex life if we watch it together, but I find the idea a total turn-off.Suzi Godson's Sex Advice: My wife wants us to watch porn together?

As you probably have heard by now, changes to the rules concerning gift vouchers in Ireland came into effect earlier this month, giving consumers more rights when it comes to these popular items.Making Cents: Play your cards right when giving gift vouchers this Christmas

More From The Irish Examiner