Crude oil futures surged to an all-time record high this evening of €67.30 a barrel in New York, as supply fears were heightened by Tropical Storm Katrina in the Gulf of Mexico. The price eclipsed the prior record of €67.10 hit earlier this month.
The market was digesting a mixed set of data on US inventories showing increases in crude oil but lower petrol stockpiles.
Energy traders were also keeping an eye on Tropical Storm Katrina, currently above the Bahamas, as it tracked towards Florida.
The US Department of Energy (DoE) said crude oil supplies increased 1.8 million barrels in the week to August 19 - well above market predictions of a 200,000-barrel rise.
But petrol reserves dropped sharply by 3.2 million barrels, after a fall of five million barrels the previous week. The figure beat analysts' forecasts of a 900,00-barrel decrease.
Petrol demand is expected to level out as the high-demand US summer driving season draws to a close, traditionally ending on the Labour Day holiday on September 5.
Refiners will then focus on stockpiling distillates, particularly heating fuel, before the cold sets in during the northern hemisphere winter in the fourth quarter. Stockpiles of distillates were higher as refiners shifted capacity. DoE figures showed a 1.4-million-barrel increase, in line with analysts' forecasts.
Meanwhile, Tropical Storm Katrina, currently above the Bahamas, should reach Florida by Friday, according to the Miami-based US National Hurricane Centre.
Analysts said that Katrina could be problematic for production in the Gulf of Mexico. The 2005 Atlantic Ocean hurricane season lasts until the end of November, with the peak period falling from August to September.
