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Oil prices rise at Hurricane Rita threatens rigs and refineries

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Oil prices rise at Hurricane Rita threatens rigs and refineries

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The latest storm threat to the US oil production is pumping up prices. As Hurricane Rita gets closer to the rigs and refineries around the Gulf of Mexico, the cost of crude is going higher. In the US it has been over $68 a barrel and Brent is above $65. Rita is on track to hit land around a coastal cluster of refineries in Texas and Louisiana. Because that is where the oil comes ashore, a big percentage of US refineries are in the Gulf of Mexico.

It accounts for nearly half of the country’s refined oil products and Texas alone refines over a quarter of the total. Oil companies including Royal Dutch Shell and Exxon Mobil started evacuating workers from rigs near the two states as Rita advanced. The oil production damage from Katrina has still not been fully repaired and US motorists are again bracing from higher prices at the pumps.