Tropical Storm Arthur Knocks Down Oil Prices By $1

By Dee Chisamera
13:31, June 2nd 2008
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Tropical Storm Arthur Knocks Down Oil Prices By $1

Oil prices fell $1 on Monday, as the dollar got stronger against the background of the Tropical Storm Arthur, which caused three of Mexico’s crude oil ports, that also supply U.S. refineries, to shut. The storm kicked off one day before the official hurricane season’s debut near the coast of Belize.

Warnings have been issued for both Belize and the Mexican coastline, where rain caused the Mexican ports to shut as a precaution. In the meantime, the storm turned into a tropical depression that made the governments of Belize and Mexico to discontinue the warnings.

Despite predictions that the storm will weaken as it crosses the Yucatan Peninsula, meteorologists warned that there are still chances for Arthur to strengthen back into a tropical storm before hitting southern Mexico.

Arthur is normally expected to move west across the coastline of the Bay of Campeche, according to the Miami-based National Hurricane Center. Overall, predictions point to an above normal hurricane season in the Atlantic Basin this year.

Initial concerns that Tropical Storm Arthur could strengthen back into the Bay of Campeche caused the Mexican oil ports to shut, Petromatrix analyst Olivier Jakob told Forbes. However, he added, there are no other formations on the radar for the time being.

The U.S. oil price went down $1.25 to 126.10 a barrel, while London Brent fell 98 cents at $126.80, Reuters reports. Oil prices went to an all-time high on May 22, when it reached $135.09 a barrel following concerns over long-term supplies.



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