| Crude oil 4 week high on storm related shutdowns { September 18 2004 } Original Source Link: (May no longer be active) http://www.nytimes.com/2004/09/18/business/18oil.htmlhttp://www.nytimes.com/2004/09/18/business/18oil.html
September 18, 2004 Crude Oil Soars to 4-Week High on Storm-Related Shutdowns By BLOOMBERG NEWS By Bloomberg News
Crude oil surged to a four-week high, bringing the gain this week to almost $3 a barrel, on concern that shutdowns caused by Hurricane Ivan would further reduce inventories. Gasoline futures also rose to a four-week high, capping the largest weekly gain in a year.
Ivan, which came ashore Thursday in Alabama, idled at least one-sixth of the refining capacity along the Gulf of Mexico and reduced offshore oil production 83 percent. The storm, which followed Hurricane Frances, closed ports and delayed tankers carrying oil and gasoline.
Crude oil for October delivery rose $1.71, or 3.9 percent, to $45.59 a barrel on the New York Mercantile Exchange, the highest since Aug. 23.
Gasoline for October delivery rose 4.4 cents, or 3.6 percent, to $1.2703 a gallon on the exchange, the highest closing price for a near-month contract since $1.3236 on Aug. 19.
Ivan weakened to a tropical depression after making landfall near Gulf Shores, Ala. ConocoPhillips and at least five other companies shut refineries in Mississippi and Louisiana.
Many of the refineries are still closed or running at reduced rates, analysts said.
The refinery shutdowns idled at least 1.42 million barrels a day of United States crude processing capacity. The closed plants have about 18 percent of the gulf region's total capacity of 7.88 million barrels, according to Energy Department data. The storm has cut oil production by at least 3.9 million barrels since Monday as companies evacuated workers from offshore platforms.
"The storms are feeding supply concerns," said Tom Bentz, an oil broker at BNP Paribas Commodity Futures in New York.
Copyright 2004 The New York Times Company
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