Crude oil futures surged past $70 a barrel for the first time today as Hurricane Katrina headed toward the heart of US oil and refinery operations in the Gulf of Mexico, shutting down an estimated one million barrels of refining capacity.

Oil futures prices advanced to a new high yesterday as a strike began in Nigeria, Africa’s largest exporter of crude, exacerbating global supply concerns at a time of strong demand and reduced output in the hurricane-ravaged Gulf of Mexico.

As concerns over oil shortages eased, the ISEQ index of shares surged ahead by 35.49 points today to close at 5598.47.

Oil prices fell by more than one US dollar a barrel today as OPEC’s president said supplies were growing faster than demand.