LONDON, 12 July 2005 — World oil prices fell by more than $1 yesterday on easing supply concerns after US facilities in the Gulf of Mexico escaped Hurricane Dennis — a storm that killed more than 20 people in the Caribbean.
Workers for oil giants BP and Royal Dutch Shell began returning to their platforms in the Gulf of Mexico after the onset of Dennis had led to mass evacuation.
New York’s main contract, light sweet crude for delivery in August, slumped by $1.35 to $58.28 per barrel in early deals. In London, the price of Brent North Sea crude oil for delivery in August plunged $1.32 to $56.88 per barrel. “The storm had an effect more on the (US) east coast, fortunately leaving the refining facilities undamaged,” said Victor Shum, a Singapore-based analyst with US energy consultancy Purvin and Gertz.
New York futures had hit a record high point of $62.10 on Thursday, then plunged $4.08 following the fatal bomb attacks in London that day before climbing back towards $60 again.
Meanwhile, the euro rose against the dollar yesterday on news that Luxembourg had voted in favor of the European constitution, with nervousness ahead of US trade figures tomorrow causing weakness in the dollar.
In late-day trade, the euro was at 1.2066 dollars against 1.2006 three hours earlier and 1.1970 dollars on Friday. The dollar was quoted at 111.72 yen against 112.00 yen earlier in the day and 112.33 yen on Friday evening.
The euro was changing hands at 1.2066 dollars against 1.1970 late on Friday in New York, 134.85 yen compared with 134.32 yen, 0.6866 pounds versus 0.6882 and 1.5554 Swiss francs from 1.5551. The dollar stood at 111.72 yen from 112.23 on Friday and 1.2885 Swiss francs against 1.2991.
European stock exchanges advanced yesterday, drawing strength from lower oil prices and a solid showing in the technology sector. The London FTSE 100 index gained 0.19 percent to close at 5,242.4 while in Paris the CAC 40 soared to a three-year high of 4,321.56, up 0.49 percent over Friday’s close. In Frankfurt the DAX jumped 1.42 percent 4,663.38. The Euro Stoxx 50 index of leading euro zone shares added 0.68 percent to reach 3,246.40.
In New York, US stocks swung higher early yesterday. The Dow Jones Industrial Average climbed 75.26 points (0.72 percent) to 10,524.40 while the tech-heavy NASDAQ lifted 18.66 points (0.88 percent) to 2,131.54 at 1515 GMT. The broad-market Standard and Poor’s 500 index advanced 7.18 points (0.59 percent) to 1,219.04.
Asian stocks closed sharply higher yesterday.
