Oil price rises on latest hurricane threat

27 August 2008

Heating oil prices are set to rise in the future as the latest storm threatens crude oil production.

According to the Associated Free Press, the cost of a barrel rose by $1.16 (93p) to finish at $116.27 in New York yesterday.

This surge was prompted by Hurricane Gustav, which was upgraded from a tropical storm this week.

Investors fear that it will affect supplies from the Gulf of Mexico and analysts at Barclays Capital were quoted as saying: "Gustav continues to represent a potential threat to oil and gas installations in the Gulf region and will be watched with vigilance."

And the news source also reports that staff are being evacuated from facilities as the hurricane approaches.

The price rise is set to add to the pressure placed on home heating oil customers after Hurricane Dolly and Tropical Storm Fay both prompted speculation when they threatened production recently.

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