UPDATE 9-Oil down as U.S. storm worries fade, snuffing early rally

Published 2015-10-01, 03:54 p/m
© Reuters.  UPDATE 9-Oil down as U.S. storm worries fade, snuffing early rally
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* Brent down 1.4 pct, U.S. crude off 0.8 pct
* Market reverses early gains as Hurricane Joaquin's path
shifts
* Early risk premium from Syria also fades

(New throughout with market settlements, additional comments)
By Barani Krishnan
NEW YORK, Oct 1 (Reuters) - Oil prices fell more than 1
percent on Thursday as the government's storm monitor altered
forecasts for the path of the latest U.S. hurricane, snuffing
out an early rally that was prompted by fears of storm damage to
U.S. East Coast oil installations.
Heightened geopolitical risk from the worsening conflict in
Syria had also boosted crude prices in Thursday's early trade.
ID:nL5N1211LF
"We don't see either item as deserving of much premium given
the sizable supply surplus of both crude and products that will
provide cushion against any temporary supply disruptions," said
Jim Ritterbusch of Ritterbusch & Associates, an oil markets
consultancy in North Wabash, Chicago.
Hurricane Joaquin, which strengthened into a powerful
Category 3 storm and was moving over the Bahamas, is expected to
hit land about 100 miles east of New York City in eastern Long
Island as a tropical storm, a revised forecast by the National
Hurricane Center (NHC) showed.
Traders watch Atlantic hurricanes because the storms can
lead to precautionary shutdowns of oil facilities, and in
exceptional cases, like Hurricane Sandy in 2012, damage energy
infrastructure.
Energy firms said they are on alert for Hurricane Joaquin
but not shutting facilities yet as its forecast track was
uncertain. ID:nL1N12113U
Earlier, the NHC had predicted the storm would hit the New
Jersey coast and New York Harbor, home to several oil
refineries, pipelines and other energy infrastructure.
"The latest update on Joaquin is bearish," said Scott
Shelton, a crude broker and commodities specialist at ICAP (LONDON:IAP) in
Durham, North Carolina.
Brent LCOc1 , the global benchmark for crude, settled down
68 cents, or 1.4 percent, at $47.69 a barrel, after hitting a
one-week high at $49.84.
The West Texas Intermediate (WTI) benchmark for U.S. crude
CLc1 finished down 35 cents, or 0.8 percent, at $44.74. At its
session peak, it was up more than $2 or 4 percent.
Oil bulls bought crude in early trade as gasoline RBc1
rallied more than 3 percent on the storm fears, a broker in
Houston said. But gasoline gave back those gains to settle flat.
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Brent and WTI have largely traded in a $5 range the past
month despite price swings of up to 5 percent a day at times.
Ritterbusch, the Chicago-based market consultant, said he
expected more volatility and price pressure ahead. "We continue
to advise adding to existing short WTI positions on occasional
price advances to above the $47 mark as seen today."

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