Oil prices could rise as Ike shuts US refineries

Oil prices could rise as Ike shuts US refineries

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15 Sep 2008

The after effects of Hurricane Ike could cause oil prices to rise again, meaning that heating oil prices could also climb.

Hurricane Ike hit the US over the weekend, causing widespread damage and closing several oil refineries in Texas and Louisiana.

Around 15 oil refineries with a total capacity of 3.8 million barrels per day will remain closed for at least the next week, causing a shortfall of around 25 per cent of America's crude oil production.

Bill Day, spokesman for US oil company Valero Energy, told the New York Times: "We don't even know when we can start the restart process, let alone how long the restart process will take."

Crude oil prices in New York rose on Friday to $101.18 (£56.31) per barrel, an increase of 31 cents, up 25 per cent on last year.

Last week Opec announced a cut in oil production in a bid to drive prices up.

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