With weekly trading winding down, traders are checking the latest updates on Tropical Storm Isaac.
By the time markets re-open on Monday, it will be clear if the storm will strengthen into a hurricane and shut down production or fizzle.
The latest indications show Isaac at a soften-than-anticipated strength but officials said it “will likely restrengthen when it moves over the Florida Straits and the eastern Gulf of Mexico.”
The latest indications are that even if it strengthens, it will be a Category 1 hurricane and miss most production and refineries.
After peaking late in the morning at $97.21, WTI crude has fallen a dollar. The lack of conviction suggests it will be a non-event, which is great news for cash-strapped US drivers.
Update: oil also under pressure from a report in the Petroleum Economist says the IEA has dropped its objections to releasing US/international oil reserves, and that the move could come in early September.