Subscribe free to our newsletters via your
. Earth Science News .

Subscribe free to our newsletters via your

Hurricane forecast drives oil prices back up

Robert Latham, who heads the Mississippi Emergency Management Agency, said a hurricane more devastating than Katrina, which killed over 1,500 people in New Orleans and along the US Gulf Coast last year, could not be ruled out.
by Staff Writers
New York (AFP) May 22, 2006
Oil prices staged a sharp rebound Monday after US experts predicted a packed summer season of Atlantic hurricanes, traders said.

Prices recovered late in the session after dropping to the lowest point for more than a month, mirroring losses across all major commodities.

New York's main contract, light sweet crude for delivery in June, rose 70 cents to close at 69.23 dollars a barrel.

In electronic deals before the US market's official opening, the contract went as low as 67.42 dollars, a level last reached on April 7.

In London, Brent North Sea crude for July delivery added 67 cents to 69.35 dollars a barrel, reversing course from an earlier low of 67.63 dollars.

"It's been a reversal in the dollar's fortune that led to some buying of the oil market. I think that oil has been dramatically influenced by what has been happening with the other commodities," Alaron Trading analyst Phil Flynn said.

"The people who sold the oil market because of fears of inflation are now buying it back in anticipation of strong demand and an active hurricane season," he said.

As many as 10 Atlantic hurricanes could form in coming months, and up to four of them could hit the United States, the US National Weather Service said in a report released Monday.

The report said the six-month Atlantic hurricane season, which starts on June 1, is unlikely to reach the records set last year, when there were 28 tropical storms, 15 of which strengthened into hurricanes.

Seven of the hurricanes were considered "major", and four of those slammed into the US coast.

But Robert Latham, who heads the Mississippi Emergency Management Agency, said a hurricane more devastating than Katrina, which killed over 1,500 people in New Orleans and along the US Gulf Coast last year, could not be ruled out.

"As bad as Katrina was, it could be worse," he said.

Katrina and a follow-up hurricane called Rita ravaged US oil facilities along the coast and in the Gulf of Mexico, sending crude futures to then-record highs.

Oil prices had been falling in recent sessions as signs of strengthening inflation in the United States reinforced fears of an economic slowdown caused in part by surging energy prices.

Metals prices, notably gold and copper, have tumbled over the past week on profit-taking, with investors concerned that higher inflation will cool demand for commodities.

The retreat came after the New York contract achieved a fresh record high of 75.35 dollars a barrel on April 21.

"The current weakness in commodities has been triggered by inflation concerns, but also the market was well overdue a correction anyway after such strong gains," Sucden oil analysts said earlier as oil prices were falling.

Set against the fears of inflation are concerns about disruptions to oil supplies from Iran, which is locked in dispute with the United States and European powers over its nuclear ambitions.

"This Iran situation is far from over," said Tony Nunan, a Tokyo-based energy risk manager for Mitsubishi Corp.

Iran's hardline government said Monday it would not negotiate on its uranium enrichment programme, and vowed to continue to work towards an industrial-scale capacity.

Britain, France and Germany have drawn up a package aimed at persuading Iran to end its uranium enrichment, which Washington and its allies say hides an effort to build a nuclear bomb. Iran says it only wants to make reactor fuel.


Related Links

China reaches milestone with completion of Three Gorges dam
Beijing (AFP) May 20, 2006
After 13 years of immense physical effort and technical ingenuity, China Saturday put the finishing touches to its controversial Three Gorges dam, the world's largest hydropower project.

  • CapRock Expands Disaster Satellite Services in Preparation For Hurricane Season
  • New Network Needed to Solve First Responder Communications Crisis
  • I think I'll take the stairs
  • Dutch Soldiers Move Into Afghanistan Under Apache Protection

  • Canada wants Kyoto climate-change deal scrapped: report
  • Al Gore issues global warming wake-up call at Cannes
  • Linking Climate Change Across Time Scales
  • Photosynthetic Trends In Northern Circumpolar High Latitudes

  • Allied Defense Wins New Tracking Antenna Orders
  • DLR And EADS To Collaborate On New Earthsat Mission
  • ALOS Snaps Europe
  • NASA Looks At Hurricane Cloud Tops For Windy Clues

  • Hurricane forecast drives oil prices back up
  • Critics say price of China's Three Gorges dam too high
  • Scientists say they have cleared technical hurdle in fusion research
  • China reaches milestone with completion of Three Gorges dam

  • Finding Cures For The Disease Of Neglect
  • More than 210,000 South Africans on antiretrovirals: spokesman
  • Hundred cases a day of HIV infections in Russia: officials
  • Sanyo says filtering system effective against bird flu viruses

  • New Reefs Explored For Pharmaceutical Potential, Ecological Impacts
  • Putting The Puzzle Of Life Together
  • Infamous rogue elephant escapes Rwandan park
  • Scientists Develop First Comprehensive Theory Explaining Madagascar's Rich Biodiversity

  • Finland hopes to clean up Russian shipping in Baltic
  • Test For Dioxin Sensitivity In Wildlife Could Result From New Study
  • Exxon Valdez Oil Found In Tidal Feeding Grounds Of Ducks, Sea Otters
  • New "Toxic" Ship Bound For India

  • Hobbit Claims Shrunken
  • Europe's Migrant Crisis
  • Human And Chimp Genomes Reveal New Twist On Origin Of Species
  • The Brain's Executive Is An 'Event Planner'

  • The content herein, unless otherwise known to be public domain, are Copyright 1995-2006 - SpaceDaily.AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA PortalReports are copyright European Space Agency. All NASA sourced material is public domain. Additionalcopyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement