Aug. 27 (Bloomberg) -- Tropical Storm Ernesto was upgraded to hurricane status, becoming the first named hurricane in the Atlantic this year, as it gathered strength passing through the Caribbean Sea toward the Gulf of Mexico, a U.S. forecaster said.
BP Plc and Royal Dutch Shell Plc, Europe's two largest oil companies, yesterday evacuated non-essential personnel from their production and drilling operations in the Gulf of Mexico as Ernesto approached. As of yesterday the companies' Gulf operations were not disrupted, they said.
So far, no oil production delays, but CL/QM futures could gap higher and put a chill on the equity markets tomorrow. Watch gold as well at the open of trade this evening. These are the types of events that skew charts, but keep in mind that everyone is seeing the same news and it might be wise to stand aside. If Ernesto turns out to be non-disruptive, or smart money sees it that way, any oil rally could be short-lived. Nevertheless, the fear could keep a floor in. 74.80 is resistance and the number to watch on a spike up.
BP Plc and Royal Dutch Shell Plc, Europe's two largest oil companies, yesterday evacuated non-essential personnel from their production and drilling operations in the Gulf of Mexico as Ernesto approached. As of yesterday the companies' Gulf operations were not disrupted, they said.
So far, no oil production delays, but CL/QM futures could gap higher and put a chill on the equity markets tomorrow. Watch gold as well at the open of trade this evening. These are the types of events that skew charts, but keep in mind that everyone is seeing the same news and it might be wise to stand aside. If Ernesto turns out to be non-disruptive, or smart money sees it that way, any oil rally could be short-lived. Nevertheless, the fear could keep a floor in. 74.80 is resistance and the number to watch on a spike up.
This entry was posted
on Sunday, August 27, 2006 at 9:00 AM.
