Brent oil trading back over $77 as Gulf storm moves in

ICE Brent crude oil prices are trading back over $77 a barrel this afternoon as bad weather due to arrive as a tropical storm in the Gulf may stop oil production this weekend in the area.

In London, Brent crude oil futures for September 2010 delivery was at $77.52 a barrel, 19.00 GMT on the ICE Futures Exchange after starting the day under the $75 mark.

Brent oil prices then recovered in trading session to their highest level since June 2010.

Although most commodity prices climbed higher, Brent and Light oil prices surged to near $79 a barrel (WTI contract) jumping more than 3 percent.

Meteorologists said hurricane activity in the Atlantic would rise in 2010 because El Niño, the weather altering Pacific warming pattern which has now dissipated.

The US National Hurricane Center, which has stated that this year’s hurricane season is likely to be the most intense since 2005 and storms are likely to affect oil production in the Gulf of Mexico.