Energy commodities were mixed on Tuesday amid fading hopes for QE3 in the US and increasing tropical storm activity in the Gulf of Mexico. Mixed US data also impacted the commodity group. Meanwhile, continuous tensions in the Middle East lent support for energy prices.
Crude oil edged higher as Hurricane Isaac is approaching the Gulf of Mexico. Currently, about 78% of oil production in the Gulf of Mexico is halted.
Brent oil dropped on speculation that supply disruptions from the Gulf of Mexico may force the US government to release strategic oil reserves to cap energy prices and compensate output fall.
Natural gas shed 3.26% despite large production cuts in the Gulf of Mexico. The storm has already halted about a half of natural gas output in the Caribbean region.
Heating oil was the top-performer, drawing strength from supply concerns from the Gulf of Mexico. Supporting the price are also expectations that US distillate fuel inventories may have fallen further last week.