Crude oil lower despite storm forecast

Crude oil ended lower on Friday after rising from earlier lows that took the price of West Texas Intermediate crude as low as $70.10 per barrel early in the session.

Prices came back up after a report that a tropical storm is beginning to form in the Atlantic Ocean that could reach the Gulf of Mexico within two weeks, potentially threatening oil production and refining facilities.

September WTI ended the session 12 cents lower at $71.47 per barrel on the New York Mercantile Exchange, while Brent crude September contracts finished the day at $69.77 per barrel, 44 cents lower on the Intercontinental Exchange in London after going as low as $68.95 during the day.

The decline in Brent prices came amid reports that daily shipments from the North Sea will rise by 14 percent next month after reductions as facilities closed for maintenance.

Nymex September gasoline was up 2.08 cents to $1.9548 per gallon on news of the potential storm, still down 3.7 percent for the week, while heating oil futures dropped 1.8 cents to $1.9712 per gallon.

The possibility of a storm also added to the price of natural gas as September contracts were up 23.4 cents to $6.82 per 1,000 cubic feet.

Meanwhile, at-the-pump prices for gasoline in the US dropped 1.3 cents to an average of $2.801 per gallon nationally, down from their peak of around $3.22 per gallon in late May.