Oil prices down as hurricane fears ease

Oil prices eased today amid signs that the latest hurricane was likely to miss oil rigs in the Gulf of Mexico.

Relief that Hurricane Wilma should miss production plants on its predicted path towards Florida helped send the cost of a barrel of crude below 63 US dollars in New York.

This took the price further away from its record of more than 70 US dollars, set after Hurricane Katrina roared through the Gulf of Mexico in August.

On the International Petroleum Exchange in London, the price of a barrel of Brent crude fell below 60 US dollars.

Forecasts that US data due later today may show an increase in crude stocks also helped reduce the price of oil. Inventories are expected to show a rise on the back of bigger imports and lower demand.

Wilma became a Category 4 hurricane early today with top winds of nearly 150mph, according to the National Hurricane Centre in Miami. It is thought Wilma will make a sharp turn and bear down on coastal areas of Florida over the weekend.

It is the 12th hurricane of the season, the same number reached in 1969 – the highest since records began in 1851.