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Barchart
Barchart
Rich Asplund

Crude Closes Higher as Tropical Storm Francine Gathers Strength in Gulf of Mexico

Oct WTI crude oil (CLV24) Monday closed up +1.04 (+1.54%), and Oct RBOB gasoline (RBV24) closed up +2.44 (+1.29%).

Crude oil and gasoline prices Monday rallied on some short-covering after last week's plunge to a 14-month nearest-futures low.   Crude oil prices also saw support as Tropical Storm Francine is expected to strengthen into a hurricane in the Gulf of Mexico later this week, which could disrupt US crude production and refining on the Gulf Coast, where 20% of US crude production is produced and 48% of US petroleum refining capacity is located.  A stronger dollar Monday and weak global economic news limited gains in crude.

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