The upward pressure on crude oil prices is likely to remain this week, commentary from Bank of Ireland Global Markets says today.
The Head of Energy and Emissions at the bank, Philip Lenehan, says that weather experts are giving Hurricane Rita a 40% chance of hitting the oil production and refining capacity in the Gulf of Mexico and New Orleans areas, which were devastated just three weeks ago by Hurricane Katrina.
'The concern is that, with Gulf production unlikely to be back at full capacity until late October/early November and long range forecasts predicting a colder than normal autumn, energy prices will remain vulnerable to upward spikes from an already high baseline,' the banker says.
He warns that oil prices at $80 a barrel are a distinct possibility in the near term.
