Oil’s Fall Limited by Resumption of Gulf of Mexico Operations

Reuters reported that a decline in construction spending in July and weak August US manufacturing data led to a drop in oil prices. However, the decrease in price was checked somewhat by the restart of some Gulf of Mexico operations following Hurricane Isaac.

As quoted in the market news:

Brent October crude futures fell $1.10 to $114.68 a barrel by 1:04 p.m. EDT (1704 GMT), having fallen as low as $114.40 after reaching $116.65.

U.S. October crude was $95.47 a barrel, down $1 from its Friday settlement, having swung from $95.02 to $97.37, both sides of the 200-day moving average of $96.65.

Brent crude posted a higher settlement on Monday, gaining $1.21, while U.S. markets were shut for the Labor Day holiday. Brent and U.S. crude gained more than 9 percent in August.

Brent’s premium to U.S. crude moved above $19 a barrel.

Click here to read the full Reuters report.