WTI oil trading firm near $89 on new US storm warning

WTI oil prices open Friday’s trading session firm near $89 a barrel after oil companies began evacuating workers from rigs in the Gulf of Mexico ahead of what forecasters said could be another powerful storm to hit the region.

Latest WTI Oil Prices

US Light crude oil futures for October 2011 delivery was trading at $88.65 a barrel, 06.50 GMT this morning in electronic trading on the NYMEX. The US oil contract closed yesterday’s session at $88.75.

Tropical Depression 13

The new weather system, provisionally called Tropical Depression 13, could strengthen to a tropical storm, the hurricane centre said, and hit areas of the US coast where memories are still fresh of the devastation from Hurricane Katrina in 2005.

Oil majors BP, Exxon Mobil and Royal Dutch Shell started evacuating workers from their rigs in the Gulf of Mexico ahead of the storm, which forecasters said had a 70 percent chance of becoming a tropical cyclone.

Exxon Mobil said it was evacuating approximately 140 employees and contractors from Gulf Coast offshore platforms expected to be in the path of the storm.

“Gross production of approximately 11,000 barrels per day of liquids and 60 million cubic feet per day of natural gas has been shut-in.” the oil giant said in a statement.

“The oil market has been supported by the possibility of a storm in the Gulf.” said Phil Flynn, an oil analyst with PFGBest Research.

Flynn noted that one of the rigs being closed down was BP and ExxonMobil’s Thunder Horse, the world’s largest oil rig with a production capacity of a quarter of a million barrels per day.

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WTI oil trading firm near $89 on new US storm warning