Crude futures rise on Hurricane fears

Crude oil futures rose in price on Friday on fears concerning the impact of Hurricane Dennis on US supplies.

Oil companies were evacuating their platforms in the Gulf of Mexico as Dennis was upgraded to a category 4 storm.

The storm is expected to reach the US Gulf Coast by the weekend. Brent crude August contracts on the International Petroleum Exchange was up 88 cents to $60.16 per barrel at mid-morning in London, after having reached $60.36 per barrel earlier in the day.

West Texas Intermediate crude on the New York Mercantile Exchange was up 81 cents to $61.54 per barrel, while Nymex unleaded gasoline was up 4 cents to $1.8450 per gallon.

The price for gasoline equates to $77.50 per barrel, giving refiners a $16 per barrel margin. Nymex heating oil was up 1.5 cents to $1.7890 per gallon, while IPE gasoil futures had gained $15 to $559.25 per tonne.

Inventory data released Thursday by the US energy department showed a 3.6 million barrel drop in crude oil stockpiles for the week.

Gasoline inventories were down by 900,000 barrels. The data showed gasoline demand at 9.7 million barrels per day for the week reported, the largest weekly demand ever.

Gasoline production was also at its highest level on record, at 9.2 million barrels per day.

Meanwhile, distillate inventories rose by 4 million barrels on the week. This increase helped ease concerns about tight diesel supplies in the summer and a shortage of heating oil next winter.

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