US petrol futures sink, Brent crude trades lower

LONDON: Benchmark US petrol prices fell by more than 4% yesterday as oil refineries and pipelines in the US Gulf Coast slowly resumed activity after Hurricane Harvey subsided, easing concerns over supply shortages in the world’s top oil consumer.

Brent crude oil futures were however trading lower, down 40 cents at US$52.35 (RM223) a barrel by 0915 GMT, after a powerful North Korean nuclear test triggered a shift away from crude markets to assets perceived to be safer, such as gold.

US West Texas Intermediate crude futures were more stable, up 6 cents at US$47.35 barrel. Nymex petrol futures were down 4.2% to US$1.6755 a gallon, levels last seen on Aug 25, the day Harvey struck.

Damage to the oil infrastructure in the Gulf Coast hub by Harvey appeared less extensive than some had feared, boosting the outlook for demand in the world’s top oil consumer.

A number of major refineries, which convert crude oil into refined products such as petrol and jet fuel, as well as distribution pipelines were gradually resuming operations.

Traders were nervously eyeing developments in North Korea, where the military conducted its sixth and most powerful nuclear test over the weekend.

That put downward pressure on crude as traders moved money out of oil – seen as high-risk markets – into gold futures , traditionally viewed as a safe haven for investors. – Reuters