Oil Gains Over $1 as Gustav Shuts U.S. Output

[Hissyspit]

Source: Reuters

Oil gains over $1 as Gustav shuts U.S. output

By Fayen Wong
2 hours, 26 minutes ago
PERTH (Reuters) - Oil prices rose more than $1 on Monday after energy firms in the U.S. Gulf shut down nearly all offshore oil output and a host of flood-prone coastal refineries ahead of Hurricane Gustav, the biggest threat since 2005's devastating Katrina.

But prices pared some bigger earlier gains as traders waited to see whether Gustav would leave lasting damage in its wake after it slams into the Louisiana coast later in the day as a major Category 3 hurricane.

U.S. light crude for October delivery rose $1.11 to $116.57 a barrel by 0303 GMT, having briefly surged above $118 a barrel when the New York Mercantile Exchange (NYMEX) opened for electronic trading several hours earlier than usual. London Brent crude rose 97 cents to $115.02.

- snip -

"This is definitely a dangerous storm but I think most of the market is in a wait-and-see mode, waiting to see (if there are) disruptions to oil facilities and pipeline infrastructure before they make a big move," said Gerard Burg, a commodities analyst at the National Bank of Australia in Melbourne

Read more: http://news.yahoo.com/s/nm/20080901/bs_nm/markets_oil_dc

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[ben_meyers]

1. Buy on the rumor and sell on the news. n/t

[bluestateguy]

2. Here we go. Fucking speculators.

Screaming yo-yo's on the floor of the exchange driving up the prices.

[Karl_Bonner_1982]

3. ONLY $1?

That's well within the range of market "noise."

[Name removed]

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