WTI drops $2.16 per barrel by midday

Crude oil prices were down by a significant amount of Monday after tropical storm Ernesto was downgraded from hurricane status and its projected path took it away from major oil producing regions of the Gulf of Mexico.  While Shell, BP, and ConocoPhillips all said that they were in process of evacuating non-essential workers from oil drilling platforms, none said that production was being affected.

The price declines came even though Iran said on Sunday that it will not abandon its program of nuclear enrichment.  The Middle Eastern nation added that it was still interested in pursuing discussions with Western nations about their concerns surrounding Iran’s intentions.  Some Western nations fear that Iran could use its oil as a bargaining chip should sanctions be imposed if it does not stop enriching uranium by a UN-imposed deadline of August 31.

By the middle of the session in New York, October contracts for West Texas Intermediate crude on the New York Mercantile Exchange was $2.16 lower to $70.35 per barrel.  While London markets were closed, Brent crude for October delivery was down $2.09 to $70.61 per barrel in electronic trading.