Oil prices resume rally as Ivan squeezes supplies
AFP, London
Oil prices climbed Thursday as disruption to production in the Gulf of Mexico continued due to Hurricane Ivan. The price of Brent North Sea crude oil for delivery in November, the new benchmark contract, rose by 71 cents to 41.06 dollars a barrel in early trading in London. New York's light sweet crude for October delivery gained 42 cents to 44.00 dollars in pre-opening electronic deals, having closed down 81 cents a day earlier. "The market is still very nervous about this hurricane in the States," said trader Kevin Blemkin at GNI-Man Financial. "We are waiting for the US (market) coming this afternoon with any news from the hurricane. We could see a further sell off as the market is very, very nervous at the moment." According to the latest report from the US Minerals Management Service, workers on 575 platforms and 69 rigs had been evacuated from the Gulf of Mexico. About 78 percent of the 1.7 million barrels-per-day of oil production in the Gulf was halted. The biggest US oil import terminal, the Louisiana Offshore Oil Port, stopped unloading tankers on Monday. Hurricane Ivan's eyewall slammed ashore near Mobile, Alabama early Thursday, leaving the Gulf of Mexico and making its way inland. It already killed more than 70 people as it made its way across the Caribbean.
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