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Oil Prices Jump On Fresh US Hurricane Threat
New York (AFP) Oct 17, 2005 World oil prices shot higher Monday as Tropical Storm Wilma raised fresh concern over hurricane-battered production in the US Gulf of Mexico. New York's main contract, light sweet crude for delivery in November, jumped 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. The November contract closed on Friday at 59.35 dollars. Phil Flynn at Alaron Trading said the new storm along with a failed refinery restart "will remind traders just how delicate our supply and demand situation is." Flynn noted that oil operations in the Gulf of Mexico are still recovering from hurricanes Katrina and Rita and that further damage could be devastating for the market. Despite lower prices for much of last week, Flynn said, "It's time to get back to the bullish reality. The correction in early October could become the running of the bulls, especially if Wilma threatens the Gulf Coast." The market ignored a lower demand forecast from OPEC that could have helped bring down prices. Marshall Steeves at Refco said Wilma was the main factor in the market Monday. A hurricane's path is never sure but "it's still its a big concern on the market," he said. Wilma was the 21st named storm of the 2005 Atlantic hurricane season -- matching the record number of named storms set back in 1933. Not all US refineries in the Gulf of Mexico region have resumed operations after bearing the brunt of hurricanes Katrina and Rita in August and September. "With oil production and refining facilities still not fully recovered it has the potential to push the market sharply higher," Sucden analyst Sam Tilley said. Six US Gulf Coast refineries remain out of action owing to damage from Katrina and Rita, according to the latest data. Crude futures smashed record high prices in nominal terms in late August following Katrina, striking 70.85 dollars in New York and 68.89 dollars in London. The Organization of Petroleum Exporting Countries said on Monday that it had revised down its forecast for global oil demand growth in 2005 -- but warned that another spike in prices was possible. Updating previous forecasts, the 11-member oil cartel said that global demand would increase on average by 1.2 million barrels per day this year compared with 2004, putting demand 1.4 percent higher than last year. OPEC had previously estimated that demand would be 1.7 percent higher this year, but it said that demand had softened owing to the sustained high prices in the wake of Katrina and Rita in the United States. Community Email This Article Comment On This Article Related Links SpaceDaily Search SpaceDaily Subscribe To SpaceDaily Express Powering The World in the 21st Century at Energy-Daily.com
Europe Debates Nuclear Energy
Washington (UPI) Jan 11, 2006European Union countries are starting to rethink their opposition to nuclear energy amid a dispute between Russia and Ukraine over natural gas supplies, but energy analysts say a switch still lacks a green light. |
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