Oil price rises amid hurricane and supply fears

11 September 2008

Crude oil prices have continued to rise, suggesting heating oil costs could soon follow.

Analysts have blamed oil producing cartel Opec's surprise announcement that it would cut supply, as well as the continuing threat of Hurricane Ike, Reuters reports.

The storm forced oil companies to keep almost all production in the Gulf of Mexico shut down this week, with less than five per cent of the area's normal output being generated.

Combined with the reduction in supply agreed by Opec in Vienna yesterday, this sent the cost of a barrel above $103 (£59) this morning.

Asia director at Hudson Capital Energy Jonathan Kornafel told the news source: "While OPEC has certainly drawn a line in the sand around the $100 level, it remains to be seen if the cartel can actually achieve the cuts outlined in the announcement."

This week police in Wrexham revealed there had been an increase in heating oil thefts this year, attributing this to recent high oil prices.

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