Oil rises on concerns that Tropical Storm Isaac could strike Gulf of Mexico and disrupt supplies

28-Aug-12

New York's main contract, light sweet crude for October delivery spiked by over a dollar to US$97.50 a barrel and Brent North Sea crude for delivery in October spiked to US$114.99. Crude prices surged as supply of oil and gas from the Gulf of Mexico was curtailed after Tropical Storm Isaac forced the closure of production facilities in the region. The Gulf of Mexico is the hub of US offshore energy production, accounting for 23% of US crude oil output and 7% of US natural gas production, over 40% of total US petroleum refining capacity and 30% of natural gas processing plant capacity.