Gas Week

EWN Publishing

15 September: oil up $US11 a barrel, or 16 per cent, over past 3 weeks as US hurricane season meets OPEC constraints

Posted by gasweek on 17 September, 2007

According to Stephen Wyatt, crude oil futures rose US18¢ to settle at a record $US80.09 a barrel in New York on Thursday night after Hurricane Humberto caused a blackout at a refinery in Texas. A major supply disruption could quickly trigger prices through $US100 a barrel. After all, in inflation-adjusted price terms, that is where they were in early 1980 during the Iran-Iraq War. The oil price has risen $US11 a barrel, or 16 per cent, over the past three weeks and 60 per cent so far this year. But in Asian trading on Friday it dipped below $US80 to fetch $US79.47c a barrel, reported Wyatt in The Australian Financial Review, (15/9/2007, p. 47).

Hurricane season in the USA: hurricane season in the US means an increased likelihood of production disruptions in the oil-critical Gulf of Mexico, while instability in the Middle East — the petrol station of the world — is a constant threat to global crude oil supplies.

OPEC action on 1 November: At the same time, non-OPEC oil production continues to disappoint and the Organisation of the Petroleum Exporting Countries’ recently announced output increase of 500,000 barrels a day, effective from November 1, is seen by analysts as far from sufficient to rebalance the market

The Australian Financial Review, 15/9/2007, p. 47

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