Oil prices climb on hurricane forecast in USA

24-May-06

Oil prices climbed as forecasts were made of a potentially devastating Atlantic hurricane season on the US Gulf Coast that could push prices beyond US$90 per barrel. New York's main contract, light sweet crude for delivery in July, spiked to US$70.86 per barrel in electronic deals and in London, Brent North Sea crude for July delivery rose to US$70.23 per barrel in electronic deals. Crude prices started rising after US weather experts predicted as many as 10 Atlantic hurricanes in upcoming months, four of which could hit the United States. This year's hurricane season -- starting in June and ending in November -- would be "very active", but less severe than in 2005, according to a report issued on Monday by the Miami-based National Hurricane Center (NHC). The Center said that it anticipated 13-16 tropical storms -- of which between 8-10 could transform into hurricanes. And between 4-6 of those would, in turn, strengthen to major hurricanes.