Oil above $80 after storm lashes Gulf of Mexico

PanARMENIAN.Net - Oil rose above $80 a barrel Monday, June 25 in Asia after a storm shut down about a quarter of oil output in the Gulf of Mexico, the Associated Press reported.

Benchmark oil for August delivery was up 48 cents at $80.24 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.56 to settle at $79.76 in New York on Friday.

In London, Brent crude for August delivery was up 36 cents at $91.34 per barrel on the ICE Futures exchange.

Tropical Storm Debby, with top sustained winds of about 60 mph (95 kph), is lashing Florida and Alabama with heavy rains and is expected to come ashore later this week over the Florida Panhandle. As of Sunday morning, 23 percent of oil and gas production in the Gulf region had been suspended, according to a government hurricane response team. Employees have been evacuated from 13 drilling rigs and 61 production platforms in the Gulf.

Analysts said any supply disruption should be brief since the storm was not expected to significantly damage oil facilities. Investors will also be closely watching a European Union summit this week where the leaders the leaders of France, Germany, Italy and Spain have agreed to push for a growth package worth up to $163 billion to spur the region's weak economy.

Crude has plunged from $106 less than two months ago amid signs of slowing economic growth and oil demand in the U.S., Europe and China. Capital Economics said it expects Brent crude to fall to as low as $70 during the next 18 months.

In other energy trading, heating oil was up 1.1 cents at $2.54 per gallon while gasoline futures gained 1.9 cents at $2.45 per gallon.

Natural gas jumped 5.1 cents at $2.68 per 1,000 cubic feet