Crude Steady On Gustav, Russia
Crude is steady this morning around $117/barrel as US oil and gas producers in the Gulf of Mexico evacuate rigs ahead of the imminent arrival of Hurricane Gustav.
Despite Gustav's presence oil fell more than $2 a barrel yesterday to $115.59 a barrel after the International Energy Agency said it would tap strategic stockpiles if Gustav disrupts Gulf energy production.
There is a 70 percent to 75 percent chance of Gustav reaching the Gulf, by which time it will likely be a Category 3 hurricane, according to meteorologists.
Prices were also backed by concerns over increasing tensions between Russia and the West.
Russia may curb oil shipments to Western Europe in retaliation for the threat of European Union sanctions and NATO's naval actions in the Black Sea, the Daily Telegraph reports.
Despite Gustav's presence oil fell more than $2 a barrel yesterday to $115.59 a barrel after the International Energy Agency said it would tap strategic stockpiles if Gustav disrupts Gulf energy production.
There is a 70 percent to 75 percent chance of Gustav reaching the Gulf, by which time it will likely be a Category 3 hurricane, according to meteorologists.
Prices were also backed by concerns over increasing tensions between Russia and the West.
Russia may curb oil shipments to Western Europe in retaliation for the threat of European Union sanctions and NATO's naval actions in the Black Sea, the Daily Telegraph reports.
