Oil above US$63 as Wilma charts course

LONDON – Oil steadied above US$63 (N$409,50) a barrel yesterday as Hurricane Wilma appeared to set its powerful course away from vulnerable rigs and refineries in the Gulf of Mexico.

Wilma has strengthened to a catastrophic Category 5 storm as it approaches Cuba and Mexico’s Yucatan Peninsula. Its path is expected to take it across southern Florida and away from the Gulf of Mexico’s storm-battered oil and gas facilities.The market’s focus shifted to US oil stocks data, which were due later yesterday.The figures will show how the world’s biggest oil consumer is coping with the loss of much of its refining and oil output after the most intense hurricane season for decades.”If we see softening figures for demand, then it could take the market down,” said John Brady at ABN AMRO.”Hurricanes affected supplies and the demand side was roaring, but now production is coming back online and we’re seeing demand erode.”US refineries are gradually resuming normal operations after August and September’s storms.Five plants are still shut along with two thirds of Gulf of Mexico oil output.”We maintain our general view that these markets have to be given some respect given the fact that we still have sizeable outages going into Q4,” said Edward Meir at Man Financial.Opec has been pumping near full tilt to fill the supply gap and the cartel expects to boost its production capacity to 38 million bpd by 2010 from 32,5 million bpd this year, its acting Secretary General Adnan Shihab Eldin said.US crude was up nine cents at US$63,29 a barrel by 1130 GMT.London Brent crude was up 13 cents at US$59,41.Tensions with Opec’s second biggest producer Iran mounted.Diplomatic and industry sources said Iran was blocking British and South Korean goods in an apparent attempt to force the two to drop their opposition to Tehran’s nuclear programme.- Nampa-ReutersIts path is expected to take it across southern Florida and away from the Gulf of Mexico’s storm-battered oil and gas facilities.The market’s focus shifted to US oil stocks data, which were due later yesterday.The figures will show how the world’s biggest oil consumer is coping with the loss of much of its refining and oil output after the most intense hurricane season for decades.”If we see softening figures for demand, then it could take the market down,” said John Brady at ABN AMRO.”Hurricanes affected supplies and the demand side was roaring, but now production is coming back online and we’re seeing demand erode.”US refineries are gradually resuming normal operations after August and September’s storms.Five plants are still shut along with two thirds of Gulf of Mexico oil output.”We maintain our general view that these markets have to be given some respect given the fact that we still have sizeable outages going into Q4,” said Edward Meir at Man Financial.Opec has been pumping near full tilt to fill the supply gap and the cartel expects to boost its production capacity to 38 million bpd by 2010 from 32,5 million bpd this year, its acting Secretary General Adnan Shihab Eldin said.US crude was up nine cents at US$63,29 a barrel by 1130 GMT.London Brent crude was up 13 cents at US$59,41.Tensions with Opec’s second biggest producer Iran mounted.Diplomatic and industry sources said Iran was blocking British and South Korean goods in an apparent attempt to force the two to drop their opposition to Tehran’s nuclear programme.- Nampa-Reuters