Crude oil rose to a record $68 a barrel in New York on concern that a storm may disrupt output in the Gulf of Mexico, where 30 percent of U.S. oil is produced.
Tropical Storm Katrina is forecast to reach hurricane strength before crossing Florida on Aug. 26 and moving into the U.S. Gulf, according to the Miami-based National Hurricane Center. Last year prices jumped at least $10 a barrel, or 22 percent, in the month after Ivan, a category-4 hurricane, swept through the area, cutting production and damaging rigs.
“We saw last year just how much oil shot up after Ivan,'’ said Gerard Burg, a minerals and energy economist at national Australia Bank Ltd. in Melbourne. If a storm similar to Ivan reaches the area, “we could certainly get to $80.'’
Crude oil for October delivery rose as much as 68 cents, or 1 percent, to a record $68 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was at $67.76 at 8:21 a.m. Singapore time.
Yesterday, the contract rose $1.61, or 2.5 percent, to $67.32 a barrel, the highest closing price since trading began in 1983. The previous intraday record of $67.10 was touched on Aug. 12. Prices are 56 percent higher than a year ago.
Oil was little changed yesterday after a U.S. Energy Department report showed the nation’s gasoline stockpiles fell more than expected. Crude oil and distillate supplies rose.
“Oil did not really make its run until midday when there was a weather advisory that upgraded the tropical storm down in the Gulf,'’ said Larry Peruzzi, senior equity trader at Boston Co. “That’s what got everything rolling.'’
Storm Track
Tropical Storm Katrina, with winds as high as 45 mph, may reach the Florida coast by the morning of Aug. 26. There is a 65 percent chance it will strengthen to a hurricane, with wind speeds higher than 74 miles an hour, during the next 36 hours, the hurricane center said 5 p.m. New York time yesterday.
Last year Hurricane Ivan killed 25 people in the U.S. and cut oil production in the region by 7 percent, causing $7 billion in damage to oil platforms and pipelines.
WASHINGTON, September 3 (Itar-Tass) -- Hurricane Katrina ruined 58 oilrigs in the Gulf of Mexico, a representative of the American Petroleum Institute said on Friday. He said 30 oilrigs could not be restored.
Apache oil company, which announced the loss of eight oilrigs producing about 7,200 barrels of oil and 12.1 million cubic meters of gas a day, suffered large damages.
American experts said that total losses in the oil production have amounted to daily 7.44 barrels since August 26.
The Gulf of Mexico was supplying up to 30% of all U.S. crude and one-fourth of natural gas to the
Crude Oil Is Little Changed as U.S. Gulf of Mexico Output Drops
Crude oil was little changed, rebounding from the session's lows, after a government report showed that U.S. oil production fell in the Gulf of Mexico.
Oil production was 901,726 barrels below pre-storm levels, almost 5 percent more than reported yesterday, the Minerals Management Service said in a daily report. Prices declined earlier today on an Energy Department report that showed U.S. supplies of crude oil and petroleum products declined less than expected in the wake of Hurricane Katrina.
``There are obviously still some problems out in the Gulf,''
UPDATE 2-Mexico's Pemex resumes full production after Emily
Mexico resumed its full production of crude oil on Friday by bringing its wells in the Gulf of Mexico back on tap after they were closed by a powerful hurricane, state oil monopoly Pemex said.
Pemex slashed output and halted exports as Hurricane Emily pounded the Yucatan Peninsula and then moved into the Gulf of Mexico earlier this week.
The storm shut down 2.95 million barrels of day of crude oil as well as 1.87 million bpd of exports, the bulk of them to the United States.
Pemex typically produces about 3.4 million bpd of crude,
Oil climbs as storm approaches Gulf of Mexico
Oil prices surged more than $1 on Wednesday as concerns about possible hurricane damage in the Gulf of Mexico added to fears about the conflict in Lebanon and the weekly US crude oil inventory report showed a drop in crude and petrol stockpiles.
IPE Brent for September delivery gained $1.45 to $77.35 a barrel in late afternoon London trade, putting the European benchmark oil price within sight of last months record of $78.18. The Brent price has risen $4 in the past three sessions.
Tropical Storm Chris threatened to turn into a hurricane and enter
Offshore U.S. crude oil production in the Gulf of Mexico was totally shut on Saturday with natural gas output also lower, the U.S. Minerals Management Service said in its daily report logging the impact of Hurricane Rita and the prior Hurricane Katrina.
MMS said the percentage of oil output shut was 100 percent, up from 99.125 percent on Friday. The normal daily oil output from Gulf of Mexico operations is 1.5 million barrels per day.
The report said 1.5 million bpd of crude oil production was shut as Saturday, in contrast to 1.486 million bpd reported shut on Friday.
For natural
Offshore U.S. crude oil production in the Gulf of Mexico was totally shut on Saturday with natural gas output also lower, the U.S. Minerals Management Service said in its daily report logging the impact of Hurricane Rita and the prior Hurricane Katrina.
MMS said the percentage of oil output shut was 100 percent, up from 99.125 percent on Friday. The normal daily oil output from Gulf of Mexico operations is 1.5 million barrels per day.
The report said 1.5 million bpd of crude oil production was shut as Saturday, in contrast to 1.486 million bpd reported shut on Friday.
For natural gas,
US Gulf of Mexico oil output 100 pct shut-MMS
Offshore U.S. crude oil production in the Gulf of Mexico was totally shut for the second straight day on Sunday with natural gas output also lower, the U.S. Minerals Management Service said in its daily report logging the impact of Hurricane Rita and the prior Hurricane Katrina.
The MMS said the percentage of oil output shut was 100 percent for both Sunday and Saturday, up from 99.125 percent on Friday. The normal daily oil output from Gulf of Mexico operations is 1.5 million barrels per day.
For natural gas, 8.047 billion cubic feet
Shell Oil said it has begun producing crude oil and natural gas from its Cougar and Enchilada units in the Gulf of Mexico.
"Today we began producing from our Cougar and Enchilada assets in the Gulf of Mexico, and the Yellowhammer Gas Processing Plant, in Mobile Bay, Alabama, is now operating," the company said in a statement.
Shell did not elaborate on production levels.
The Enchilada unit, about 300 kilometres southwest of New Orleans, has a peak daily production from its two platforms of 32,800 barrels of crude and 52 million cubic metres of gas, according to the Shell website.
Shell's Cougar platform is
Oil leaps as new storm menaces Gulf of Mexico
Oil leapt by $1.50 on Monday as another tropical storm gathered strength in the Caribbean and menaced US rigs and refineries already rocked by the most active hurricane season in decades. Tropical Storm Wilma, the 21st named storm this year, formed from a depression in the Caribbean and could move into the oil-rich Gulf of Mexico by the end of the week, the US National Hurricane Center said on its website.
The last time there were so many named storms was 1933. Vulnerable oil platforms and refineries along the Gulf of Mexico
Oil leaps as Wilma menaces Gulf of Mexico
Oil leapt more than $1 yesterday as another tropical storm gathered strength in the Caribbean, menacing US rigs and refineries already rocked by the most active hurricane season in decades.
Tropical Storm Wilma, the 21st named storm this year, could move into the oil-rich Gulf of Mexico by the end of the week, the US National Hurricane Centre said yesterday.
Rising tension in Iran, the world’s fourth-biggest oil producer, also buoyed prices after twin bombings in the southwest oil city of Ahvaz. Tehran blamed the blasts on Britain.
US crude was up $1,14
