Crude prices rise again due to tropical storm Gustav
August 30, 2008
Oil prices on Friday rose amidst fears tropical storm Gustav will soon enter Gulf of Mexico area, which is home to a quarter of US crude supplies and 40 percent of its refining capacity. The price rise was also supported by the weakened Dollar.
On Thursday the price for crude in October rose by 93 cent almost shooting up to $120 a barrel, before finally settling at $115.59 a barrel, by the end of the day. In Europe, light sweet crude for October delivery was $116.72 at midday trading.
Britain’s Daily Telegraph, citing an unidentified business source, reported that Russia may cut oil supplies to Germany and Poland as early as this weekend in response to the threat of EU sanctions over Russia’s war with Georgia, which also provoked the Traders reaction.
According to Mr. Jonathan Komafel,
“Until this hurricane hits, the trend has to be higher towards the $120 level.”
As a precautionary measure, as the tropical storm called Gustav advanced, oil companies were pulling employees off installations in the Gulf of Mexico area.
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