Oil prices surged above $83 a barrel as refiners shut Gulf of Mexico output
following forecasts a tropical depression centered in the region would become
crude rose $1.44 to $83.37 a barrel at 1817 GMT after hitting an all-time high
of $83.60 in early trade. Brent crude rose 40 cents to $78.87.
has been trading above $80 for the past week in part due to concerns about US
supplies after government data showed crude stocks in the top consumer fell for
the fourth consecutive week.
tropical depression blowing into the Gulf of Mexico exacerbated worries as companies
shut offshore oil and natural gas output on expectations it would become a tropical
companies have shut over 360,100 barrels of oil per day, some 27.7 per cent, of
Gulf crude oil production and 16.7 per cent of natural gas production on the storm
threat, the US Minerals Management Service said.
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