Oil price rises above 77 dollars in London

6th September 2010, Comments 0 comments

World oil prices diverged on Monday, the end of the traditional peak demand season for motor fuel in the United States.

Brent North Sea crude for October rose 38 cents to 77.05 dollars in late London trade.

New York's main contract, light sweet crude for delivery in October, fell 14 cents to 74.46 dollars a barrel.

Monday signalled the end of the US "driving season", or peak demand period for gasoline between May and September in the United States when Americans traditionally drive long distance for their summer holidays.

"Today it is Labor Day in the US, marking the end of the US driving season," said Bjarne Schieldrop, an analyst at SEB Commodities Research.

"The oomph from the gasoline demand factor is now behind us."

With the driving season over, market attention was focused on the ongoing hurricane season to see whether energy production in the Gulf of Mexico would suffer disruption.

"The US hurricane season still has a couple of months more of disruption risk to go," said Schieldrop.

"At the moment the Tropical depression Gaston has an estimated 60 to 70 percent chance of becoming a tropical cyclone with some risk that it might head for the Gulf of Mexico."


© 2010 AFP

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