Monday, October 18, 2010
Commodity Corner: French Labor Strife, Equities Boost Crude Oil
Strikers have prevented oil tankers from entering the major southern port of Fos Lavera, and all 12 of France's refineries have been shut down. Moreover, the protesters have attempted to block access to fuel terminals. An official with a fuel importers' group said Monday morning that roughly 1,500 of France's 12,000 retail fuel outlets have exhausted their supplies of some or all types of fuel. Also having a bullish effect on oil Monday were rising equities markets, with the Dow Jones Industrial Average and S&P 500 each closing up more than 0.7%. Crude oil traded within a range from $80.35 to $83.08 Monday.
The price of a gallon of gasoline also surged, thanks to many of the issues affecting crude oil. Front month gasoline settled a nickel higher at $2.15 after fluctuating between $2.09 to $2.155. Thanks to a mix of abundant inventories and underwhelming demand as traders continue to await cold winter weather, November natural gas fell 10.4 cents to settle at $3.43 per thousand cubic feet. Gas traded from $3.44 to $3.53.
Courtesy of Rigzone.Com