Oil surged above $70 today as the US government predicted another rough Atlantic hurricane season.
Crude for July delivery rose 44 cents to $70.40 a barrel this morning in London.
The US National Oceanic and Atmospheric Administration said 2006 could see up to 10 hurricanes; the Gulf of Mexico last year saw offshore platforms toppled, undersea pipelines ruptured and several coastal refineries flooded.
About 20 per cent of the Gulf's 1.5 million barrels per day of crude oil output has been shut since the record 2005 storm season along with 13 per cent of the region's 10 bcfd of natural gas production, which saw crude above $70 for the first time.
The rise in oil also comes as commodities staged a modest recovery from last week's sell-off and Venezuela mooted Opec oil production cuts.