As relief efforts after Hurricane Katrina gain momentum, crude oil prices continue to remain at levels above US$64 on news that four damaged oil refineries will remain shut for months. Late morning in Singapore, light sweet crude for October delivery rose to US$64.11 a barrel on the New York Mercantile Exchange. Over 120 oil and gas platforms in the Gulf of Mexico are still shut, blocking nearly 60% of the region's normal daily oil production from the market. Damage to Gulf Coast oil production pushed retail gas prices in USA to historic highs in the past two weeks. As gasoline imports flow in and demand eases with the traditional fall in demand in September, prices could drop sharply in the coming weeks.
Meanwhile, the European Union finance ministers meeting in England urged OPEC to increase oil production, warning that soaring energy prices are threatening global growth and Europe's economic recovery. The OPEC seems to be blamed for high gasoline prices that have sparked threats of protests by British farmers and truck drivers. OPEC, a cartel with limited production has been slow to respond to rising demand.
In Saudi Arabia, militants fought a 3 day battle with Saudi security forces last week, and are targeting key installations, including oil facilities, as security forces killed 5 of Saudi Arabia's most wanted al-Qaida militants and arrested 11 other suspects.
12-Sep-05 
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