LONDON, Sept 22: World oil prices climbed on Thursday as monster Hurricane Rita churned towards the US Gulf Coast, sending millions fleeing its predicted path and forcing the shutdown of vital energy infrastructures.
US President George W. Bush warned the authorities were “preparing for the worst” as the savage hurricane steered towards the southern US.
New York’s main contract, light sweet crude for delivery in November, climbed 60 cents to $67.40 per barrel in early trading. It has now risen more than seven per cent since the start of the week.
In London, the price of Brent North Sea crude for November delivery gained 61 cents to $65.34 per barrel.
“Hurricane Rita is headed across the Gulf of Mexico towards the heart of the US oil refining sector,” said CALYON analyst Mike Wittner.
“If there is significant damage, the current price spike could be an extended one.”
British energy giant BP and Anglo-Dutch peer Royal Dutch Shell, having already shut down their offshore Gulf platforms, announced the evacuation of their Texas refineries.
BP said its 470,000-barrels-per-day Texas City refinery — its biggest in the US — was shut, while Shell closed its two Texas refineries, Shell Dear Park, near Houston, and Motiva Port Arthur, near Beaumont.—AFP
