Oil prices rise on new hurricane threat

8 September 2008

The latest hurricane to threaten the Gulf of Mexico may see heating oil prices pushed up.

Bloomberg reports that production in the region is likely to be further disrupted by Hurricane Ike, as oil companies are unable to resume work.

President of energy markets analysis firm Schork Group Stephen Schork told the news source: "We've already gone a full week and a half with production shut in from Hurricane Gustav. Now everything has to be shut down again for at least another week."

His comments followed a 2.7 per cent increase in the cost of a barrel of crude oil, as it rebounded from its lowest point in five months to reach $109.12 (£61.39) in New York.

The Gulf of Mexico is responsible for more than a quarter of oil production in the US and the storm is expected to reach the area in the next two days.

Last week insurer NFU Mutual blamed high oil prices for an increase in heating oil thefts, finding that at least six cases are being recorded each week, the BBC reported.

Click here for home heating oil price trends