Oil Prices To Reach $125 On US Storm

Oil prices were steady near $125 a barrel on Monday as the market kept on eye on a tropical storm that could affect oil facilities in the Gulf of Mexico.

By mid-day in Europe, light, sweet crude for September delivery fell seven cents to $125.04 a barrel in electronic trading on the New York Mercantile Exchange.

The National Hurricane Centre issued a hurricane watch on Sunday for the coast of western Louisiana and eastern Texas, which means that hurricane conditions are possible from Tropical Storm Edouard within the next 24 hours in the area.