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Oil tops $78 as Hurricane Ida threatens output

Mon Nov 9, 2009 7:20am IST
 
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* Hurricane Ida threatens Gulf of Mexico oil output

* Dollar under pressure, commodity currencies jump

* U.S. unemployment rate climbs to 26-½ year high

By Fayen Wong

PERTH, Nov 9 (Reuters) - Oil prices rose to $78 a barrel on Monday, recouping some of the previous session's near 3 percent loss, on concerns that a powerful hurricane would cut U.S. oil and gas supplies.

Hurricane Ida roared toward the Gulf of Mexico on Sunday, where important oil fields are located, after killing 91 people and leaving at least another 60 missing in floods and mudslides in El Salvador. [ID:nN08235104]

U.S crude for December delivery CLc1 rose 84 cents to $78.27 a barrel by 0113 GMT. The contract settled down $2.19 on Friday, after data showed the U.S. jobless rate jumped more than expected to a 26-1/2-year high of 10.2 percent in October.

London Brent crude LCOc1 rose 76 cents to $76.63.

"Reports of tropical storms potentially impacting operations in the Gulf of Mexico would be supportive in the near term, but investors generally focus on economic and inventory data for direction," Australia & New Zealand Bank said in a research note on Monday.  Continued...

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