Oil prices dive as Ernesto weakens
Tuesday, August 29th 2006
Crude futures fell by nearly 2 dollars Monday as Tropical Storm Ernesto weakened and appeared to be tracking a course that would avoid Gulf of Mexico oil installations.
New York’s main contract, light sweet crude for delivery in October, fell 1.90 dollars at 70.61 dollars per barrel.
In London, Brent North Sea crude for delivery in Oct. sank 1.88 dollars to settle at 70.82 dollars per barrel.
Hurricane Ernesto, the first hurricane of the Atlantic season this year, was downgraded to a tropical storm late Sunday. It swept Haiti and the Dominican Republic Sunday with heavy rains, and was expected to move over Cuba and could hit southern Florida by early Tuesday, according to the Miami, Florida-based National Hurricane Center.
Hurricanes Rita and Katrina in 2005 destroyed the oil and gas production platforms and rigs in the Gulf of Mexico and led to record highs in crude futures.
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