SINGAPORE: Oil rose above US$79 (RM255.17) on Monday, June 28 to its highest in almost eight weeks as tropical storm Alex forced Mexico to reduce oil exports and some producers in the United States to evacuate platforms and curb output.
Japan's Nikkei average edged up 0.2% on Monday, with the dollar little changed against a basket of currencies, though the macroeconomic outlook appeared to brighten after US consumer sentiment rose in June to its highest since January 2008, and job loss reports fell.
Over the weekend Alex became the first named storm of the Atlantic hurricane season, which runs from June through November and forecasters expect will be an active one, possibly matching the record-breaking 2005 season.
"The first hurricane always heightens concern, and this season is expected to be a bad one," said Jonathan Barratt, managing director at Commodity Broking Services in Sydney.
US crude for August delivery rose as much as 33 US cents to US$79.19 a barrel, matching the peak on June 25, the highest intra-day price since May 6.
It was up 24 US cents at US$79.10 by 0038 GMT, after rising 2.2% last week, partly on concern that Alex would veer north and hit US output in the northern part of the gulf. August ICE Brent crude gained 33 US cents to US$78.45.
Mexico closed two of its main Gulf of Mexico oil exporting terminals on Sunday as tropical, depression Alex moved over the Yucatan peninsula, the government said.
The ports of Cayo Arcas and Dos Bocas handle combined exports of more than 1.1 million barrels per day (bpd), or about 80% of Mexico's shipments abroad, which mainly head to US refineries.
But Mexican state-run oil company Pemex said on Sunday its platforms in the Campeche sound, which pump almost two million bpd, were working normally, and there was no evacuation plan yet ahead of the arrival of Alex.
Shell Oil shut subsea production at its Auger and Brutus platforms in the Gulf of Mexico because of the threat from Alex, a website posting said on Sunday.
Personnel not essential to operations were evacuated from BP's Atlantis, Mad Dog and Holstein platforms in the Gulf of Mexico, a recorded telephone message said.
Tropical depression Alex moved into the southwestern Gulf of Mexico and was likely to regain storm status on Monday, the US National Hurricane Centre said, heading towards the Mexican state of Tamaulipas, which borders the US, as a hurricane.
Large patches of thick oil from BP Plc's Gulf of Mexico oil spill washed ashore in Mississippi for the first time on Sunday, although Alex wasn't expected to interfere with clean-up operations.
Organisation of the Petroleum Exporting Countries (Opec) secretary-general Abdullah al-Badri said on Sunday that he was comfortable with oil prices at their current level and did not expect production levels to change between now and October.
World leaders agreed on Sunday to take different paths for cutting budget deficits and making their banking systems safer, a reflection of the fragile economic recovery in many countries.
"A balance has to be found that doesn't affect growth," Barratt said. "The perceived feeling is that controlling deficits will restrain growth. Then oil demand growth won't be as big as we were expecting."
Last Friday, US lawmakers hammered out a historic overhaul of financial regulations, handing President Barack Obama a major domestic policy victory.
Dozens of House Democrats had threatened to vote against a ban on swaps trading on grounds the trade would move overseas.
Instead a compromise solution allows banks to stay involved in foreign-exchange and interest-rate swaps dealing, which form the bulk of the US$615 trillion over-the-counter derivatives market. They also could participate in gold and silver swaps and derivatives designed to hedge banks' own risk.
But they would need to spin off dealing operations that handle agricultural, energy and metal swaps, equity swaps and uncleared credit default swaps. ' Reuters
Japan's Nikkei average edged up 0.2% on Monday, with the dollar little changed against a basket of currencies, though the macroeconomic outlook appeared to brighten after US consumer sentiment rose in June to its highest since January 2008, and job loss reports fell.
Over the weekend Alex became the first named storm of the Atlantic hurricane season, which runs from June through November and forecasters expect will be an active one, possibly matching the record-breaking 2005 season.
"The first hurricane always heightens concern, and this season is expected to be a bad one," said Jonathan Barratt, managing director at Commodity Broking Services in Sydney.
US crude for August delivery rose as much as 33 US cents to US$79.19 a barrel, matching the peak on June 25, the highest intra-day price since May 6.
It was up 24 US cents at US$79.10 by 0038 GMT, after rising 2.2% last week, partly on concern that Alex would veer north and hit US output in the northern part of the gulf. August ICE Brent crude gained 33 US cents to US$78.45.
Mexico closed two of its main Gulf of Mexico oil exporting terminals on Sunday as tropical, depression Alex moved over the Yucatan peninsula, the government said.
The ports of Cayo Arcas and Dos Bocas handle combined exports of more than 1.1 million barrels per day (bpd), or about 80% of Mexico's shipments abroad, which mainly head to US refineries.
But Mexican state-run oil company Pemex said on Sunday its platforms in the Campeche sound, which pump almost two million bpd, were working normally, and there was no evacuation plan yet ahead of the arrival of Alex.
Shell Oil shut subsea production at its Auger and Brutus platforms in the Gulf of Mexico because of the threat from Alex, a website posting said on Sunday.
Personnel not essential to operations were evacuated from BP's Atlantis, Mad Dog and Holstein platforms in the Gulf of Mexico, a recorded telephone message said.
Tropical depression Alex moved into the southwestern Gulf of Mexico and was likely to regain storm status on Monday, the US National Hurricane Centre said, heading towards the Mexican state of Tamaulipas, which borders the US, as a hurricane.
Large patches of thick oil from BP Plc's Gulf of Mexico oil spill washed ashore in Mississippi for the first time on Sunday, although Alex wasn't expected to interfere with clean-up operations.
Organisation of the Petroleum Exporting Countries (Opec) secretary-general Abdullah al-Badri said on Sunday that he was comfortable with oil prices at their current level and did not expect production levels to change between now and October.
World leaders agreed on Sunday to take different paths for cutting budget deficits and making their banking systems safer, a reflection of the fragile economic recovery in many countries.
"A balance has to be found that doesn't affect growth," Barratt said. "The perceived feeling is that controlling deficits will restrain growth. Then oil demand growth won't be as big as we were expecting."
Last Friday, US lawmakers hammered out a historic overhaul of financial regulations, handing President Barack Obama a major domestic policy victory.
Dozens of House Democrats had threatened to vote against a ban on swaps trading on grounds the trade would move overseas.
Instead a compromise solution allows banks to stay involved in foreign-exchange and interest-rate swaps dealing, which form the bulk of the US$615 trillion over-the-counter derivatives market. They also could participate in gold and silver swaps and derivatives designed to hedge banks' own risk.
But they would need to spin off dealing operations that handle agricultural, energy and metal swaps, equity swaps and uncleared credit default swaps. ' Reuters
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