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Oil above $70 as cyclone reaches Oman
OIL pulled back slightly but remained above $70 on Tuesday as a powerful cyclone reached the coastline of Oman and shut its oil and gas export terminals. The storm, the worst to hit Oman in 30 years, began lashing eastern coastal areas on Tuesday morning. The country’s 650,000 barrels per day (bpd) of crude exports have stopped but supplies from Saudi Arabia, the world’s top oil exporter, were expected to escape disruption. The kingdom, with oil output capacity of more than 11 million bpd, can easily offset any lost Oman supplies.
London Brent crude was down 17 cents at$70.23 a barrel in midday trade. US light crude fell 50 cents to $65.71, Oil surged $ 1.33 on Monday on news the storm was headed for the energy-rich Gulf. At one stage it was equivalent to a maximum-force Category Five hurricane and. the market disruptions to shipping and production.
Shipping agents said it was also business as usual in major exporter the United Arab Emirates.
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