US crude climbs more than $1/bbl on storm fears

18 August 2008 08:39  [Source: ICIS news]

SINGAPORE (ICIS news)--Crude futures rose by more than $1/bbl on Monday, amid concerns that Tropical Storm Fay could disrupt oil and gas operations in the Gulf of Mexico.  

At 07:03 GMT on Monday, September NYMEX light sweet crude futures were trading at $115.20/bbl, up $1.43/bbl on last Friday’s settlement level. Earlier the contract hit a high of $115.35/bbl, up $1.58/bbl.

At the same time, October ICE Brent futures were trading at $114.02/bbl, up $1.47/bbl on last Friday’s settlement price, having earlier risen to a high of $114.15bbl, up $1.60/bbl.

Some workers have been evacuated from offshore oil and gas facilities in the eastern and central areas of the Gulf of Mexico. However, production from fields in the area was reported to be continuing.

There was uncertainty regarding the path of Tropical Storm Fay with some models forecasting that the storm may miss the production areas and make landfall further east in Florida.

Despite a ceasefire, tensions remain high between Russia and the West following the Russian occupation of Georgian territory.

Georgia is an important transit hub for the export of Azeri crude from the Caspian region into western Europe.

Azerbaijan suspended oil exports through the Georgian ports of Batumi and Poti on Sunday after an explosion damaged a key rail bridge.

Exports from the Georgian ports of Batumi and Supsa had already been disrupted due to the conflict with flows along the Baku-Supsa oil pipeline halted.

The key Baku-Tbilisi-Ceyhan (BTC) Azeri pipeline, which had been damaged by a recent explosion and fire, is presently under repair. It was unclear when the pipeline would reopen.

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By: James Dennis
+65 6780 4359

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