by winston » Tue Jul 22, 2008 10:01 pm
Good for Equities; Bad for Gold
===============================
Oil Falls on Forecasts Storm to Miss Gulf Platforms, Refineries
By Mark Shenk
July 22 (Bloomberg) -- Crude oil fell on forecasts that a tropical storm in the Gulf of Mexico will miss oil fields and refineries, easing concern that supplies will be disrupted.
Oil rose for the first time in a week yesterday as Tropical Storm Dolly moved into the Gulf of Mexico, which accounts for about 25 percent of U.S. oil output. The storm is forecast to come ashore tomorrow near the Texas border with Mexico, south of the fields, the National Hurricane Center said today.
``It looks like Dolly will be a big rainmaker and nothing else,'' said Kyle Cooper, an analyst at IAF Advisors in Houston.
``Last week the bulls got knocked around,'' said Phil Flynn, senior trader at Alaron Trading Corp. in Chicago. ``I think there's been a major change in market psychology.''
Production Platforms
Petroleos Mexicanos, Mexico's state oil company, produces about 1.07 million barrels of oil a day in the Bay of Campeche, which is south of the storm's track. Dolly isn't expected to reach company platforms after it enters the Gulf, Petroleos Mexicanos spokesman Javier Delgado Pena said yesterday.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"