In a special Sunday afternoon trading session, oil prices spiked more than $3 before pulling back as the world oil market signaled its preliminary response to the looming threat of Hurricane Gustav.
Gustav, a Category 4 storm when it raked through Cuba on Saturday, was downgraded on Sunday but expected to strengthen again as it gets closer to the U.S. coast. Forecasters predict it will touch land on Monday.
U.S. crude traded $1.24 higher to $116.70 a barrel. That's less than some analysts predicted after the New York Mercantile Exchange opened electronic trading three and a half hours earlier than normal. The early open was designed to give traders more time to react to the news of the hurricane.
I think personally think these special trading sessions should be eliminated, especially since it creates an immediate reaction to a scenario that might not be as bad as expected by Tuesday when the market would normally open.
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