Oil Prices Succumb To Iea’s Release Of Oil Reserves
Dated- 27 Aug , 2012 - Global
Oil prices fell this week end after a report that the International Energy Agency is likely to tap strategic oil reserves as soon as September, dropping its resistance to a US-led plan. However, the losses were limited because of the threat to Gulf of Mexico production from Tropical Storm Isaac and that potential supply disruption prompted selling of Brent positions and buying of US crude. Tropical Storm Isaac took aim at flood-prone Haiti on Friday and was expected to become a hurricane when it churns into the Gulf of Mexico early next week, on a path that could see it make landfall anywhere from New Orleans to the Florida Panhandle.
Another potential threat to supply looms after Norwegian oil services workers broke off wage talks with oil companies, taking the sector a step closer to its second strike within two months and leaving government mediation as the next formal step in the dispute. Brent October crude fell US cents 12 on the week, closing at US$113.95 a barrel, having dropped US$1.42 for the day. It also snapped a string of three straight weekly gains. US October crude managed a US cent 14 weekly gain, its fourth straight rise settling at US$96.15 a barrel. Brent's premium to U.S. crude fell to US$17.44 a barrel.