Tropical storm Ida pushes oil to almost $80 a barrel
OIL yesterday rose three per cent towards $80 a barrel after Tropical Storm Ida forced the shut in of US oil and gas production, helping to support prices.
US crude for December delivery rose $2.34 to $79.77 a barrel by yesterday evening. London Brent crude gained $2.21 to $78.08.
Ida, the first real storm threat of the 2009 season, was downgraded from a hurricane yesterday, but production remained shut in as producers waited for the storm to pass over the Gulf.
“Crude is up on the weak dollar and the impact of Tropical Storm Ida, overshadowing some bearish news of the Saudis raising supplies available and China raising fuel prices,” said Phil Flynn, analyst at PFGBest Research.
Crude has been bolstered by stronger equities and a weaker dollar in recent months.