Cyclone concerns push up oil price

Fears regarding Tropical Cyclone Gonu, which is heading towards the Gulf state of Oman has seen the price of Brent crude oil push up to around $70.70 today.

The weather system, the most powerful to storm to have occurred in the Gulf since 1945, is expected to make landfall on Thursday.

Worries about the oil production facilities in the path of the cyclone along the Oman coast has compounded a market already tight on the supply side given the continuing 30% shutdown of Nigerian production - the result of continuing terrorist activity.

EIA data in the US is forecast to show a small build in the gasoline component of stock, but the prospect of a dip may push oil through the $71 barrier by the end of today's session.