Oil prices rise on US hurricane worries

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Commodities - International Oil Report

LONDON (AFP) - Crude oil prices rose on Wednesday as the US hurricane season threatened to disrupt supplies to the US economy, the world s biggest oil consumer, analysts said.

New York s main contract, West Texas Intermediate (WTI) light sweet crude for delivery in October, gained 98 cents to $87 a barrel.

Brent North Sea crude for October delivery climbed 38 cents to $113. 27 a barrel.

Traders were eyeing weather conditions off the US coast as the country endures its storm season, said Nick Trevethan, senior commodities strategist at ANZ Research in Singapore.  The market remains concerned about the possibility of a major storm in these six to seven weeks before the hurricane season ends, offering a little bit of support for WTI prices, he told AFP.

Hurricanes tend to jack up crude prices in the short term as offshore refineries are forced to close and may even be damaged in their wake, creating a supply disruption.

 

 

Courtesy: Nation


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