Oil price above $83 on storm fears
Press Trust of India / Singapore September 28, 2007
New York's main futures contract, light sweet crude, was 46 cents higher at $83.34 a barrel for November delivery in late morning trade.
The contract had surged $2.58 to $82.88 in late US trades yesterday, when it edged closer to the all-time intra-day high of $84.10.
Brent North Sea crude for November delivery was at $80.45, up 42 cents after breaching the $80-level for the first time in London, where the contract soared $2.60 yesterday.
Tensions in the market were heightened on news that a storm developing in the Gulf of Mexico could affect oil production facilities, analysts said.
According to the US National Hurricane Centre, a tropical depression was heading toward the coast of Mexico and could become a tropical storm.
The Gulf of Mexico is a leading oil-producing region for the US and Mexico and investors are worried that, during the long Atlantic hurricane season that ends in November, a storm will damage oil rigs and other infrastructure.
"I think the storm sort of got people on edge," said Jason Feer, Asia Pacific vice-president and general manager of energy market analysts Argus Media, in Singapore.
He said that while US crude stocks have been building, refinery run rates have dropped.
"That sort of indicates there's a potential bottleneck" heading into the North American winter when demand for heating oil picks up.
Story Comments
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Posted By : anjalir on 28 September,2007
This is a bad news. Though domestically the inflation is persistently moving down (WPI at 3.32% for the week ending 15 September 2007) the rising crude oil prices have become a cause of worry and may lead to rise in inflation. Along with it the appreciating rupee and strong inflows may also lead to rise in inflation with rising consumer demand.
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