Dawn News

April, 01 2015
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Oil prices rise

Hurricanes tend to jack up crude prices in the short term due to supply route constraints and the risk of damage to offshore oil fields. - File photo

LONDON: Crude oil prices rose on Wednesday as US hurricane season threatened to disrupt supplies to the US economy, the world's biggest oil consumer, analysts said.

New York's main contract, West Texas Intermediate (WTI) light sweet crude for delivery in October, jumped $2.28 to $88.30 a barrel. Brent North Sea crude for October delivery advanced $1.53 to $114.42 a barrel.

Traders were eyeing weather conditions off the US coast as the country endures its storm season, said Nick Trevethan, senior commodities strategist at ANZ Research in Singapore.

“The market remains concerned about the possibility of a major storm in these six to seven weeks before the hurricane season ends, offering a little bit of support for WTI prices,” he told AFP.

Hurricanes tend to jack up crude prices in the short term as offshore refineries are forced to close and may even be damaged in their wake, creating a supply disruption.—AFP


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