Oil prices drop to $68.95

Published June 14, 2006

LONDON, June 13: World oil prices fell on Tuesday on news that the first tropical storm of the US Atlantic hurricane season, Alberto, would miss energy infrastructures in the Gulf Coast, dealers said.

New York's main contract, light sweet crude for delivery in July, slid $1.41 to $68.95 per barrel in pit trading.

In London, Brent North Sea crude for July delivery shed $1.27 to $67.21 per barrel in electronic trading.

“Oil futures were lower on Tuesday as the first named storm of the Atlantic hurricane season weakened and continued along its path that is likely to cause little damage oil facilities in the Gulf of Mexico,” Sucden analyst Sam Tilley said.

“However we still expect oil prices to remain relatively firm as the prospect of another active hurricane remains fresh in most peoples' minds.” More than 20,000 people were ordered to evacuate their homes in Florida as tropical storm Alberto swirled through the Gulf of Mexico.

As the storm churned toward Florida, state Governor Jeb Bush, a brother of the US president, decreed a state of emergency, which allows him to mobilise emergency personnel and National Guard troops.

With the region still traumatised by 2005 hurricanes Katrina, Rita, Dennis and Wilma, the US National Hurricane Centre (NHC) predicted that Alberto would hit Florida's Gulf coast on Tuesday.

“Although some potential still exists for re-strengthening, the likelihood that Alberto will become a hurricane prior to landfall is decreasing,” the NHC said.—AFP

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