Oil near $82 as storm threat cuts Gulf of Mexico output
Crude oil traded near 82 dollar a barrel in New York after rising yesterday as a storm threat in the eastern Gulf of Mexico cut the US oil output.
By Agencies |
NEW YORK: Crude oil traded near 82 dollar a barrel in New York after rising yesterday as a storm threat in the eastern Gulf of Mexico cut the US oil output.
Crude oil for November delivery was at 81.62 dollar a barrel, down 16 cents, in the New York Mercantile Exchange, after touching a high of 81.78.
However, the October contract reached the highest intraday price of 83.90 dollar yesterday.
Producers including Royal Dutch Shell, Exxon Mobil and Anadarko Petroleum have shut more than 3,60,000 barrels, or 28 per cent, of the US daily output in the region, the nation's Minerals Management Service said.
A tropical disturbance off Florida's southwestern coast may gain storm strength in coming days, the National Hurricane Center said.
Oil prices set records seven straight days as the chance of a storm increased, a report showed US stockpiles dropped more than market expectations, and the falling US dollar raised commodity prices.
The Gulf of Mexico accounts for about 25 per cent of US oil production and half the nation's refining capacity. Prices rose earlier in the month as two hurricanes threatened Mexican output in the southern Gulf.
Crude-oil supplies in the US, the world's biggest user, fell 3.87 million barrels last week, the 10th drop in 11 weeks, the Energy Department said. The decline left supplies 7.4 per cent higher than the five-year average for the period, the department said.
New York oil prices have risen 10 per cent this month. October's 1.54 dollar closing premium over the November contract was the widest between the exchange's front month contracts since June 2003.
Crude oil for November delivery was at 81.62 dollar a barrel, down 16 cents, in the New York Mercantile Exchange, after touching a high of 81.78.
However, the October contract reached the highest intraday price of 83.90 dollar yesterday.
Producers including Royal Dutch Shell, Exxon Mobil and Anadarko Petroleum have shut more than 3,60,000 barrels, or 28 per cent, of the US daily output in the region, the nation's Minerals Management Service said.
A tropical disturbance off Florida's southwestern coast may gain storm strength in coming days, the National Hurricane Center said.
Oil prices set records seven straight days as the chance of a storm increased, a report showed US stockpiles dropped more than market expectations, and the falling US dollar raised commodity prices.
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The Gulf of Mexico accounts for about 25 per cent of US oil production and half the nation's refining capacity. Prices rose earlier in the month as two hurricanes threatened Mexican output in the southern Gulf.
Crude-oil supplies in the US, the world's biggest user, fell 3.87 million barrels last week, the 10th drop in 11 weeks, the Energy Department said. The decline left supplies 7.4 per cent higher than the five-year average for the period, the department said.
New York oil prices have risen 10 per cent this month. October's 1.54 dollar closing premium over the November contract was the widest between the exchange's front month contracts since June 2003.
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