Oil prices higher on Hurricane Gustav
Thursday, 28 August 2008
SINGAPORE, Aug 27 (AFP): World oil prices rose in Asian trade today, underpinned by concerns Hurricane Gustav may head for the Gulf of Mexico where key US energy installations are located, dealers said.
Prices were also supported by the possibility of heightened tensions between Russia and the West after Moscow recognised the Georgian rebel regions of South Ossetia and Abkhazia as independent, they said.
In afternoon trade, New York's main contract, light sweet crude for October delivery, gained 25 cents to 116.52 dollars a barrel-easing from the day's high of 117.12 -- after closing up 1.16 dollars during US trading Tuesday.
Brent North Sea crude for October delivery added 25 cents to 114.88 dollars.
"Oil markets are keeping a nervous eye on Hurricane Gustav, with forecasts showing it may move into the Gulf of Mexico," said David Moore, a Sydney-based commodity analyst with Commonwealth Bank of Australia.
"As well, diplomatic tensions involving Russia have intensified following Russia's decision to recognise as independent states both South Ossetia and Abkhazia," he said.
The heightened concerns over the Georgian rebel regions led to worries that the pipeline flow of Azerbaijani crude from the Caspian Sea to the Turkish port of Ceyhan on the Mediterranean could be interrupted.
Gustav was meanwhile on a path to strike Jamaica and Cuba, and possibly offshore oil rigs in the Gulf of Mexico later in the week, according to weather forecasters.
"For oil traders it is another weekend of storm watch," said Phil Flynn at Alaron Trading.
Anglo-Dutch energy giant Royal Dutch Shell said it was planning to evacuate some staff from its Gulf facilities because of Gustav.
Oil prices have tumbled from record highs above 147 dollars on July 11 after breaking through 100 dollars at the start of the year.
Prices were also supported by the possibility of heightened tensions between Russia and the West after Moscow recognised the Georgian rebel regions of South Ossetia and Abkhazia as independent, they said.
In afternoon trade, New York's main contract, light sweet crude for October delivery, gained 25 cents to 116.52 dollars a barrel-easing from the day's high of 117.12 -- after closing up 1.16 dollars during US trading Tuesday.
Brent North Sea crude for October delivery added 25 cents to 114.88 dollars.
"Oil markets are keeping a nervous eye on Hurricane Gustav, with forecasts showing it may move into the Gulf of Mexico," said David Moore, a Sydney-based commodity analyst with Commonwealth Bank of Australia.
"As well, diplomatic tensions involving Russia have intensified following Russia's decision to recognise as independent states both South Ossetia and Abkhazia," he said.
The heightened concerns over the Georgian rebel regions led to worries that the pipeline flow of Azerbaijani crude from the Caspian Sea to the Turkish port of Ceyhan on the Mediterranean could be interrupted.
Gustav was meanwhile on a path to strike Jamaica and Cuba, and possibly offshore oil rigs in the Gulf of Mexico later in the week, according to weather forecasters.
"For oil traders it is another weekend of storm watch," said Phil Flynn at Alaron Trading.
Anglo-Dutch energy giant Royal Dutch Shell said it was planning to evacuate some staff from its Gulf facilities because of Gustav.
Oil prices have tumbled from record highs above 147 dollars on July 11 after breaking through 100 dollars at the start of the year.