A weakening dollar and shut in of most oil and gas production in the US Gulf of Mexico due to the onslaught of Hurricane Isaac have helped prop up oil prices. Oil on the Nymex fell to US$95.4 while Brent crude dipped to US$112.5. Oil prices have risen globally even as the Group of Seven (G7) leading economies urge major producers to boost output.
Around 95% of oil production and 67% of natural gas production was shut in the US Gulf, and nearly a million barrels a day of refining capacity was locked up, as Isaac gained intensity to a category one hurricane over the warm water and headed towards New Orleans, a key refining hub. The market awaits the impact of disruption that Isaac might cause.