Oil output losses worse than feared

The amount of oil production losses caused by hurricanes Ike and Gustav in the energy-rich US Gulf of Mexico is far greater than initially predicted, helping to keep prices above $100 (€68,
The amount of crude processed last week by US refineries dropped to 11.5m barrels a day, below the 11.7m b/d level after hurricanes Rita and Katrina.

Mexico on Thursday said that it had cut its oil production by 250,000 b/d, as the refineries it supplies in the US Gulf of Mexico were still without power and were not taking deliveries.

In spite of the disruptions, the impact on global oil prices has been muted because of a drop in demand and slower economic growth, which has been exacerbated by Wall Street’s financial crisis, traders and analysts said.

Financial Times