September 04, 2007	Tuesday	Sha'aban 21, 1428

LONDON, Sept 3: World oil prices climbed on Monday as traders worried that Hurricane Felix might yet force the closure of vital oil rigs in offshore Mexico.

Trading was subdued, however, owing to a public holiday in the United States.

In London, the price of Brent North Sea crude for October delivery rose 66 cents to $73.35 per barrel.

New York’s main futures contract, light sweet crude for delivery in October, gained 19 cents to $74.48 per barrel.

US floor trading was shut on Monday for Labour Day, leaving dealers able to trade only electronically. London oil trading is entirely electronic.

“Prices firmed up on Monday as markets remain wary of the potential disruptive effects of Hurricane Felix,” Barclays Capital oil analyst Kevin Norrish said in London.

“Oil production operations ... have not been affected yet, but companies will remain alert and precautionary shut-downs could occur in the next few days,” he added.

Oil traders are concerned that the hurricane might cause Mexico’s state-owned oil company Pemex to again shut offshore energy production.

Last month, Hurricane Dean forced Pemex to shut down its oil output of approximately 2.7 million barrels per day.

Crude oil prices had rebounded last week owing to falling US energy reserves and a recovery for global equities.

Traders also remain on alert over weak US energy stockpiles.

Motor fuel inventories remain far below normal levels as refiners in the United States have struggled to keep up during the peak demand season, which draws to a close on Monday as Americans drive home from their holiday spots.

Meanwhile the market does not expect the oil-producing cartel Opec to raise production when it meets in September.

Twenty-one out of 23 analysts polled by Thomson Financial said the cartel was likely to keep production levels unchanged.—AFP