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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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