Predicted US storms to affect oil prices

11 August 2006

Analysts are reporting that severe weather conditions due to hit the US later this year could significantly affect oil prices.

With the current situation in the Middle East showing no signs of letting up, oil prices have hit $75 a barrel and this could increase in the coming 12 months.

With tropical storms expected to hit the States, oil prices are likely to see further disruption, according to Angus McPhail, analyst at Alliance Trust's global oil and natural resources division.

He said: "There is a real possibility of a tropical storm hitting mainland United States in the coming months and that means more disruption to oil production and storage facilities in the US.

"Such disruption could add an extra $5 to $7 per barrel to oil on top of its current price. If the geopolitical situation does not improve and there's a particularly bad hurricane season in the US, we see oil prices spiking to $85."

With oil prices expected to increase in the coming months, it makes now a great time for consumers to buy oil.