WTI oil hanging onto $79 mark, trading at 12 week highs

23 July 2010 23 July 2010

BonTrade

WTI oil prices look set to end the week trading close to the $79 mark which is the highest price since the first week in May this year.

US Light crude oil futures for September 2010 delivery was at $78.95 a barrel, 18.45 GMT on the NYMEX after hitting highs of around $79.50 at 09.30 GMT today.

Tropical Storm Bonnie and WTI Oil Prices

Tropical storm Bonnie accompanied by rain and strong winds is heading towards the US Florida coast today with a wind speed in the eye of the storm at around 40mph.

The tropical storm is expected to reach Gulf of Mexico oil fields this weekend and is propping up oil prices in trading today as Bonnie is now expected to slice straight through the BP gulf oil spill waters and surrounding oil rigs.

One in Eight Chance of Hurricane Force Bonnie

The US National Oceanic and Atmospheric Administration predictions suggest that there is about a one in eight chance that tropical storm Bonnie will be able to intensify to hurricane strength before it makes landfall along the Gulf of Mexico.

If the storm turns into a hurricane then expect that oil prices will hold or jump higher in trading early next week.