NewsOil lingers around $79 on hurricane woes PreviousForecastAnalysisCrude fell off Friday’s closing’s highs as Alex, the first named tropical storm of the season, weakened easing the fear over damage and supply disruption. Yet still the fears prevail over the possibility of the storm to still develop into a hurricane as it moved into the southwestern Gulf of Mexico.

Crude today is trading around $79 recording its highest around $79.38 and lowest around $78.58 per barrel. Meanwhile, crude surged to the highest in seven weeks recording its highest around $79.12 and lowest around $75.87 per barrel, ending higher by $2.35.

Meanwhile, the spill in the Gulf of Mexico is still worrying officials as BP attempts to stop the immense oil leak -that has been occurring for 68 days now- were hurdled by the anticipation for the hurricane strike; yet the fears eased now after the U.S National Hurricane Center in Miami said the storm will likely strike away from the leak area.  

The S&P GSCI Index close Friday around 511.86 recording a rise by 10.06 points; whereas the RJ/CRB Commodity Index closed around 265.61 gaining 3.99 points.

Moreover, the G20 leaders weekend summit resulted in a slight wave of optimism as they pledged to contain the fiscal imbalance as soon as their economies are stronger and have stated that they will set new targets to overcome the sovereign debt crisis gripping Europe; they also decided on raising capital requirements for banks to prevent the reoccurrence of the crisis seen; calming investors’ fears and weakening the dollar which ignited the appeal of commodities helping crude maintain its highs.

As for NYMEX as of 02:13 EST; motor gasoline is trading around $216.000 per gallon falling by $0.36; heating is trading around $210.000 per gallon also falling $-1.220; whereas natural gasoline is also trading around $4.818 per 1000 cubic feet dropping $0.88. In London, Brent futures gained by $0.10 to record $78.040.