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| Fears over damage to US oil rigs | Fears over damage to US oil rigs |
| (20 minutes later) | |
| With Hurricane Gustav on course to hit the US Gulf of Mexico coast, the damage it does to the region's oil facilities could be a "worse case scenario". | With Hurricane Gustav on course to hit the US Gulf of Mexico coast, the damage it does to the region's oil facilities could be a "worse case scenario". |
| The stark warning comes from extreme weather impact analyst Jim Roullier, who says Gustav may be more damaging than 2005's Hurricane Katrina. | The stark warning comes from extreme weather impact analyst Jim Roullier, who says Gustav may be more damaging than 2005's Hurricane Katrina. |
| Output from oil rigs in the US Gulf has already been cut by three-quarters, as staff continue to be evacuated. | Output from oil rigs in the US Gulf has already been cut by three-quarters, as staff continue to be evacuated. |
| The region produces 25% of the US's crude oil and 15% of its natural gas. | The region produces 25% of the US's crude oil and 15% of its natural gas. |
| About 4,000 offshore oil and gas facilities are located in the US gulf, 100 of which were badly damaged three years ago by Katrina and the follow on Hurricane Rita. | About 4,000 offshore oil and gas facilities are located in the US gulf, 100 of which were badly damaged three years ago by Katrina and the follow on Hurricane Rita. |
| "This storm will be more dangerous than Katrina," said Mr Roullier, of Planalytics. | "This storm will be more dangerous than Katrina," said Mr Roullier, of Planalytics. |
| "I think this storm will prove to be a worse case scenario for the production region." | "I think this storm will prove to be a worse case scenario for the production region." |
| Impact on prices | Impact on prices |
| Forecasters predict that Gustav will hit the central Louisiana coast west of New Orleans by late Monday or early Tuesday. | Forecasters predict that Gustav will hit the central Louisiana coast west of New Orleans by late Monday or early Tuesday. |
| Predicted route of Hurricane Gustav (31 August 2008)Enlarge Map | |
| Concern about the impact of Gustav is likely to push global oil prices higher when trading resumes on Monday. | Concern about the impact of Gustav is likely to push global oil prices higher when trading resumes on Monday. |
| Crude prices had increased last week as concern mounted about Gustav, before finishing slightly down on Friday. | Crude prices had increased last week as concern mounted about Gustav, before finishing slightly down on Friday. |
| US light sweet ended Friday 13 cents lower to $115.46 a barrel, while London's Brent closed down 12 cents to $114.05. | US light sweet ended Friday 13 cents lower to $115.46 a barrel, while London's Brent closed down 12 cents to $114.05. |
| However, it is important to remember that global demand for oil has eased since record highs of more than $147 a barrel were hit back in July. | However, it is important to remember that global demand for oil has eased since record highs of more than $147 a barrel were hit back in July. |
| The mayor of New Orleans, Ray Nagin, has already ordered the evacuation of the city. | The mayor of New Orleans, Ray Nagin, has already ordered the evacuation of the city. |
| In 2005, three-quarters of the city was flooded by Rita after a storm surge breached its protective levees. | In 2005, three-quarters of the city was flooded by Rita after a storm surge breached its protective levees. |
| More than 1,800 people died in coastal areas. | More than 1,800 people died in coastal areas. |