Oil prices got a boost yesterday, rising from a three-month low as powerful Hurricane Wilma showed signs of hindering the recovery of oil operations in the storm-battered Gulf of Mexico.
"There have been signals within the industry that mobile rigs operating in areas that might be in the way of Wilma are moving out of the way," said William Ferer, president of investment management firm W.H. Reeves and Co.
Wilma was hammering Mexico's famed Caribbean beach resorts on the Yucatan Peninsula yesterday on a track toward Florida, well away from rigs and platforms, but oil companies were taking few risks after damage from Katrina and Rita in August and September.
A handful of firms, including Chevron and BP, announced they were evacuating hundreds of workers from the Gulf of Mexico, though none reported an impact to production or recovery efforts.
US crude oil futures settled up 61 cents at $60.63 a barrel after dropping as low as $59.15 a barrel - the lowest since late July. London Brent crude rose 57 cents to $58.48 a barrel.
The boost came after the US Minerals Management Service reported the offshore oil and gas industry's recovery from Katrina and Rita had stalled - reinforcing concerns that Hurricane Wilma could disrupt operations.
Some 65.8 per cent of the Gulf of Mexico's 1.5 million barrels of daily crude production capacity was shut yesterday, a larger amount than the 64.5 per cent reported on Thursday, the agency said in its daily report.
Oil's bounce yesterday ended a week-long slide triggered by reports of rising US oil and natural gas stockpile levels and added proof that record prices were leading the world's top consumer to burn less fuel.
Prices are 24 per cent stronger than at the start of the year and remain at historically high levels, even as US crude stockpiles linger about 12 per cent above last year's level. - (Reuters)
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