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Hurricane Ike boosts oil prices
12.09.08
Oil prices rose today as Hurricane Ike hit the southern US coast, forcing the shutdown of oil and gas production facilities in the area.
New York crude for October delivery, was up 43 cents at $101.30 a barrel, rebounding from a decline in closing US trades overnight. London Brent October crude rose 51 cents to $98.15 after shedding $1.33 in London yesterday.
Oil and natural gas production in the Gulf of Mexico has been largely shut down as Ike bears down on the coast, the US Department of Energy said. The storm is set to spare most Gulf energy installations. The bulk of US oil refineries are in the Gulf.
Ike comes in a week when the Opec cartel decided to cut production — although its biggest producer Saudi Arabia will continue to pump crude at the same levels.
Meanwhile, the US has lowered its forecasts for 2009 global crude oil demand.
It said it is using 3.8% fewer petroleum products than it was at this time last year.
