THE former president of Shell Oil, John Hofmeister, says Americans could be paying $5 for a gallon of petrol by 2012.

Tourists and oil workers fled today as Hurricane Gustav swamped eastern Jamaica on a path to hit the Cayman Islands with winds near hurricane force.

The governments of 26 countries have agreed to release the equivalent of two million barrels of oil per day from strategic reserves to cope with the aftermath of Hurricane Katrina, the International Energy Agency said.

Oil prices surged to their highest level in 13 years today amid fears of a terror campaign against the oil industry in the Middle East.