Oil prices fell in New York on Tuesday, reflecting concern for the European banking system, but have substantially reduced their losses after the announcement of an explosion at a refinery in Mexico.
On the New York Mercantile Exchange (Nymex), a barrel of light sweet crude for October delivery ended at 74.09 dollars, down 51 cents from Friday. The New York market was closed Monday, Day Labor in the United States.
Down over 2% much of the session, prices have again some of their losses after the announcement of a deadly explosion at a refinery company Pemex in Mexico. The accident “should support the demand for” Mexico’s oil import, said Antoine Halff, the brokerage Newedge Group.
“Mexico has a limited refining capacity, it is a net importer of products,” he added. “If this refinery is rendered inoperable unexpectedly, this may create a substitution request. The refinery-Ing. Hector R. Lara Sosa “in Cadereyta, located in the north, is the most modern of the six operated by Pemex on the national territory. It covers 235,000 barrels per day, according to Mr. Halff.
Mexico, whose refining capacity is insufficient for the needs of the country, imports of fuel from the United States, where the reaction of U.S. markets.
In early trading, prices were affected because of “concern for European banks,” said Andy Lipow of Lipow Oil Associates.