Crude oil, natural gas prices rise

Oil prices were higher on Friday as a tropical storm in the Caribbean threatened to strengthen into a hurricane.  Forecasters predicted that the storm could enter the Gulf of Mexico and then hit the Gulf Coast of the United States next week.  With the first anniversary of Hurricane Katrina approaching, traders were wary of a repeat of Katrina’s devastation.

Brent crude for October delivery was $1.19 higher to $73.87 per barrel by late afternoon in London, for a 2 percent rise in price this week.  October contracts for West Texas Intermediate crude were trading at $73.50 per barrel by mid-morning on the New York Mercantile Exchange, up $1.14, for a total gain of 3 percent over the week.

Natural gas futures were also higher, with Nymex September Henry Hub prices up 40 cents to $7.47 per British thermal unit, 11 percent higher on the week.

Traders were less worried about storm damage to refineries, with gasoline inventories up and the US summer driving season near an end, promising a drop in demand.  Nymex September unleaded gasoline prices were over two percent lower during the week, to $1.9190 per gallon.