Crude oil prices closed at $118.27 a barrel Wednesday as the oil rally cooled a bit despite storm concerns in the Gulf of Mexico.

Tropical Storm Gustav continued on its path toward the gulf, home to a quarter of U.S. oil production. The storm, still a long a way off, slammed Haiti, killing 11, and is drawing comparisons to Hurricane Katrina.

The National Hurricane Center expects that Gustav will intensify to a Category 3 hurricane and make its way toward landfall around Louisiana and Mississippi over the next few days.

Natural gas was up .18 cents at $8.57 per million British thermal units.

Heating oil was up 5.31 cents at326.59 cents a gallon. Refurbished gas rose 10.67 cents at 307.60 cents a gallon.

U.S. motorists were paying an average of $3.667 for a gallon of regular unleaded gasoline, down from $3.672, the AAA said in its fuel gauge report.

Copyright 2008 by United Press International


Publication date: 28 August 2008   

Source: UPI-1-20080827-17575100-bc-us-energy-1stld.xml

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