Light Sweet Crude Oil for October 2012 expiry on NYMEX settled almost unchanged at $ 96.47 per barrel, up 0.33%. Increase in supplies of Crude oil and fizzling out of hurricane Isaac determined the fate for prices during the week.
Energy Information Administration (EIA) stated that Crude supplies for the week ending 24 August 2012 was 364.5 million barrels, up from 360.74 million barrels last week. The supply side worries from Gulf of Mexico were relieved after the hurricane Issac was downgraded to tropical storm. The threat of hurricane had closed down 95% of the total oil capacity.
EIA expects U.S. total crude oil production to average 6.3 million barrels per day in 2012, an increase of 0.6 million barrels per day from last year, and the highest level of production since 1997. The Syrian crisis that was conducive for Crude Oil rise in last few weeks seemed to fade away but Iranian tensions persisted. Iran continued with its nuclear programme and doubled its capacity to produce uranium.
Economic sanctions on Iran keep world oil supplies uncertain at the moment. For coming week, demand expectations remain eyed on Federal Reserve that they will be providing some measures that will increase their economy.
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