Trade Journal Report Pushed Current Oil Prices Lower

A trade journal report saying that Western nations might release oil reserves has pushed current oil prices lower.

In the NYMEX, the crude price per barrel posted a 12-cent decline to $96.15. In London, Brent crude also traded lower by 28 cents to $113.31 per barrel.

The current U.S. administration has been thinking of releasing oil from its Strategic Petroleum Reserve to stop the increase in current oil prices, which are higher by at least $8 a barrel throughout August. The release of oil reserves will increase supply, which will push prices lower.

Petroleum Economist, a trade publication, recently reported with anonymous sources as its basis that the IEA had consented to support a plan to release crude from strategic reserves. The crude price per barrel in the early parts of trading slightly moved up on concerns regarding Tropical Storm Isaac, which can possibly reach hurricane strength in the Gulf of Mexico.

That could interrupt the production and refining of oil. Apache Corp, a BP oil service firm, already announced that some of its offshore workers in the area have evacuated.

At the pump, the current gasoline price average reflects a rise of at least a cent, to $3.73 per gallon. That rise is about 25 cents more than last month and 16 cents greater than this time last year.

Elsewhere in the energy markets, the price of natural gas lost 10 cents or 3.5% to $2.70 for every 1,000 cubic feet. New York Harbor’s wholesale gasoline rose by a cent to $3.12. The cost of heating oil declined by 2 cents to $3.12.

By: Chris Termeer