posted on Jun, 25 2010 @ 10:01 PM
Just found this,
Oil prices surged on Friday as the market fretted about global supply and rough weather in the Caribbean Sea threatened to develop into a hurricane in
the oil-producing Gulf of Mexico.
New York's main contract, light sweet crude for August delivery, surged to $US78.86 a barrel, a gain of $US2.35 from Thursday's close.
In London, Brent North Sea crude for August delivery gained $US1.65 to settle at $US78.12 a barrel.
"The biggest influence is really the weather forecast for the tropical waves that are occurring in the Caribbean and whether those will develop into
a tropical storm and ultimately a hurricane next week," said Andy Lipow at Lipow
The market kept a watchful eye on signs of a brewing tropical storm that could wreak havoc on the oil companies operating in the Gulf.
"That could impact oil production," Lipow said.
The rough weather could impact on crude oil produced in offshore Mexico or, if the storm heads northward toward the Louisiana coast, it would affect
oil production in the US, he said.
JPMorgan Chase analysts noted that if the low-pressure system developed into a tropical cyclone, it would likely disrupt operations to contain and
clean up the BP spill, and might reduce production.
A tropical storm "would undoubtedly interrupt BP's oil spill response, and were it to strengthen sufficiently, a storm could possibly interrupt Gulf
of Mexico oil and gas production," they said in a note to clients.