Oil prices climb on storm fears in Gulf of Mexico
Oil prices climb on storm fears in Gulf of Mexico
LONDON (AFP) - World oil prices rose on Monday as traders fretted about the potential impact of Tropical Storm Fay on energy facilities in the Gulf of MexicoNew York's main contract, light sweet crude for September delivery, added 35 cents to 114.12 dollars a barrel after bouncing above 115 in electronic deals.
London's Brent North Sea crude for October advanced by 43 cents to 112.98 dollars.
Oil futures had fallen sharply last week on the prospect of reduced demand for energy around the globe owing to slower economic growth.
"Crude prices were higher (on Monday) due to the possibility of supply disruptions in the Gulf of Mexico amid Tropical Storm Fay," said Sucden analyst Nimit Khamar.
"The US National Hurricane Centre (NHC) expects Fay to miss offshore production areas in the Gulf and instead hit Florida on Tuesday or Wednesday.
"However, some computer models are predicting Fay could strike production areas in the eastern Gulf of Mexico."
Anglo-Dutch energy group Royal Dutch Shell said over the weekend that it had evacuated 360 hundred staff from the region as a precaution.
"Given the current forecast, as a precautionary measure, we will continue to reduce offshore staffing levels," Shell said.
It added: "There remains no impact to Shell operated production at this time. Additional personnel being evacuated today are not essential to current ongoing drilling and production operations."
Tropical storm Fay powered towards hurricane strength Monday as it hit Cuba and headed toward the Florida Keys after claiming at least 11 lives in the Dominican Republic and Haiti.
Maximum sustained winds from the sixth storm of the Atlantic hurricane season were clocked at 85 kilometers (50 miles) per hour, the Miami-based NHC said.
Elsewhere on Monday, analysts kept one eye on ongoing developments in the conflict between Georgia and Russia.
Oil exports of 50,000-70,000 barrels a day from Azerbaijan, headed for the West via Georgia, have been suspended after the destruction of a key rail bridge in Georgia, energy group BP said.
"There's nothing going on that rail link for the moment," a BP spokeswoman told AFP.
Damage to the bridge, caused during the Russia-Georgia conflict, and the shutdown of two other oil pipelines means the Baku-Novorossiisk pipeline, transporting 100,000 barrels a day, is currently the only western export route for Azeri crude.
Supply from the region was already hampered by the closure of the key Baku-Tbilisi-Ceyhan (BTC) oil link, which BP also operates. The BTC line -- the world's second-longest pipeline -- was shut earlier this month after a blast in a pump at a section in eastern Turkey.
Turkey said Monday that it expected to reopen the BTC soon after completing repairs to the fire-damaged link.
"An intensive effort is underway... Production will begin again in a few days if there are no
LONDON (AFP) - World oil prices rose on Monday as traders fretted about the potential impact of Tropical Storm Fay on energy facilities in the Gulf of MexicoNew York's main contract, light sweet crude for September delivery, added 35 cents to 114.12 dollars a barrel after bouncing above 115 in electronic deals.London's Brent North Sea crude for October advanced by 43 cents to 112.98 dollars.
Oil futures had fallen sharply last week on the prospect of reduced demand for energy around the globe owing to slower economic growth.
"Crude prices were higher (on Monday) due to the possibility of supply disruptions in the Gulf of Mexico amid Tropical Storm Fay," said Sucden analyst Nimit Khamar.
"The US National Hurricane Centre (NHC) expects Fay to miss offshore production areas in the Gulf and instead hit Florida on Tuesday or Wednesday.
"However, some computer models are predicting Fay could strike production areas in the eastern Gulf of Mexico."
Anglo-Dutch energy group Royal Dutch Shell said over the weekend that it had evacuated 360 hundred staff from the region as a precaution.
"Given the current forecast, as a precautionary measure, we will continue to reduce offshore staffing levels," Shell said.
It added: "There remains no impact to Shell operated production at this time. Additional personnel being evacuated today are not essential to current ongoing drilling and production operations."
Tropical storm Fay powered towards hurricane strength Monday as it hit Cuba and headed toward the Florida Keys after claiming at least 11 lives in the Dominican Republic and Haiti.
Maximum sustained winds from the sixth storm of the Atlantic hurricane season were clocked at 85 kilometers (50 miles) per hour, the Miami-based NHC said.
Elsewhere on Monday, analysts kept one eye on ongoing developments in the conflict between Georgia and Russia.
Oil exports of 50,000-70,000 barrels a day from Azerbaijan, headed for the West via Georgia, have been suspended after the destruction of a key rail bridge in Georgia, energy group BP said.
"There's nothing going on that rail link for the moment," a BP spokeswoman told AFP.
Damage to the bridge, caused during the Russia-Georgia conflict, and the shutdown of two other oil pipelines means the Baku-Novorossiisk pipeline, transporting 100,000 barrels a day, is currently the only western export route for Azeri crude.
Supply from the region was already hampered by the closure of the key Baku-Tbilisi-Ceyhan (BTC) oil link, which BP also operates. The BTC line -- the world's second-longest pipeline -- was shut earlier this month after a blast in a pump at a section in eastern Turkey.
Turkey said Monday that it expected to reopen the BTC soon after completing repairs to the fire-damaged link.
"An intensive effort is underway... Production will begin again in a few days if there are no
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