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Oil Prices Rise As New Hurricane Threatens Gulf of Mexico

Posted on: Tuesday, 18 October 2005, 09:00 CDT

Oil prices rise as new hurricane threatens Gulf of Mexico

NEW YORK/LONDON/VIENNA, Oct. 17 (Xinhua) -- Oil prices increased sharply on Monday as a new hurricane brews in the oil-rich US Gulf of Mexico.

New York's light sweet crude for delivery in November jumped by 1.73 dollars to close at 64.36 dollars per barrel.

In London, the price of Brent North Sea crude for December delivery gained 1.09 dollars to 60.57 dollars per barrel in closing deals.

Tropical Storm Wilma, the 21st named storm this year, could become a hurricane on Tuesday and could move into the southern end of the Gulf of Mexico by Saturday, the US National Hurricane Center said.

The gulf, which hosts most US oil production and refineries, is still recovering from two previous devastating storms. Hurricanes Katrina and Rita tore through it and into the coast in August and September, sharply reducing oil and gas production as well as refinery operations.

The world oil prices were also buoyed by twin bombings in the oil city of Ahvaz, in the southwest of Iran, the world's fourth biggest oil producer.

In Monday's monthly oil report, OPEC expected that demand growth for this year would amount to 1.18 million barrels per day, with total demand standing at 83.26 million barrels per day.

Oil prices have fallen in recent weeks after surging to over 70 dollars per barrel in late August. However, some market analysts said the possibility of a big rebound could not be ruled out.

They believe that if this winter is too cold in the Northern Hemisphere, oil prices will get momentum to rise, even to 75 dollars per barrel.

Source: Xinhua News Agency - CEIS

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