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Tropical Storm Gordon Helps Extend Oil's Rally
A tropical storm is headed for the Gulf of Mexico, and this is helped oil prices extend last week's 5.4% rally. Light sweet crude oil for October delivered is about 1.6% higher at $70.80. It has been up to $71.40. The multi-year peak on the continuation futures contract was set in early July near $75.25. The Gulf area accounts for about a sixth of US oil production and 45% of its refining capacity. Reports indicate that workers have been evacuated from several oil platforms. Oil prices have steadily risen from the mid-August low near $64.40. The drawdown in US inventories coupled with coming US sanctions on Iran have ... (full story)