Oil and Gas 1

As part of understanding the value of our hydro resources we need to stay on top of the oil and gas markets. When Danny says he wants a piece of the action or the oil can stay in the ground while offering our efficient renewable superior hydro for export he's giving you double talk.
I will post a regular story on oil prices so that the Upper Churchill will not be repeated.

Oil stays above $75 on supply fears

Tropical storm brews in Gulf of Mexico, threatening oil and gas rigs still on mend from last year's hurricanes.

August 2 2006: 7:26 AM EDT

LONDON (Reuters) -- Oil did not dip below $75 on Wednesday as a tropical storm gathered strength and headed toward the Gulf of Mexico, threatening U.S. oil and gas rigs still recovering from last year's devastating hurricanes.

The storm triggered supply concerns in the world's largest energy consumer ahead of government data expected to show a fall in gasoline stocks due to strong summer driving demand.U.S. light crude rose 39 cents to $75.30 a barrel. London Brent crude rose 50 cents to $76.39 a barrel by 6:50 a.m. ET.

Brent is at a rare premium to U.S. oil because European markets are more directly affected by real and feared supply disruptions in Nigeria, Russia and the Middle East.

Tropical Storm Chris intensified over the Caribbean and could become the year's first hurricane to threaten the Gulf of Mexico later Wednesday or early Thursday, the Miami-based National Hurricane Center said. The storm's forecast path takes it into the Gulf early on Monday.

Last year's hurricanes shut in a quarter of U.S. crude and fuel output and sent oil to record highs. About 12 percent of the U.S. Gulf of Mexico's 1.5 million barrels per day (bpd) oil output is still offline.

"It is a timely reminder of how sensitive the market is to news of hurricanes ahead of the season's typical peak period," said Eoin O'Callaghan of BNP Paribas.

The storm gave another boost to gasoline futures, already rising on expectations that U.S. stocks of the motor fuel will fall 1.6 million barrels when the government releases its latest inventory data Wednesday.

A string of outages have left refiners struggling to keep up with strong growth in gasoline demand as U.S. motorists take to the roads for summer vacation.

"Recent refinery disruptions suggest potential for another larger-than-consensus fall in gasoline stocks," O'Callaghan said.

Crude stocks are expected to have dropped by 700,000 barrels but distillates, which include heating oil and diesel, are set to rise 700,000 barrels, according to a Reuters survey of analysts.