Gulf spill of 210,000 gallons daily may push oil over $100

3 May 2010 3 May 2010

BonTrade

Oil prices could see a sharp rise higher, closing in on the $100 mark again as the huge Gulf oil spill started to affect or shut down other oil rigs in the area and oil supply to the US is disrupted.

The US Gulf of Mexico oil spill took a turn for the worst over the weekend as latest information showed that daily oil leaking from the Deepwater Horizon oil rig disaster could be upto as much as 210,000 gallons each day.

“The potential disruption of oil tanker traffic in the Gulf of Mexico is already having an impact on oil prices.” Goldman Sachs said in a report. “Traffic of oil service boats and oil tankers through the Gulf will likely be slowed.”

Goldman said it expects prices to rise to $94.50 a barrel in three months and to $99 a year from now.

For the moment, crude oil prices remain supported by speculation that the giant oil spill would help draw down US crude oil stocks in the short term, which could send oil prices back over $100, even if only temporarily.