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SYDNEY - Oil prices fell yesterday, as oil and gas producers in the Gulf of Mexico restored more output after a mild storm triggered evacuation and production cuts.
US crude for November delivery lost US46c to US$81.16 a barrel to stand nearly US$3 below the all-time high set by the October-month contract on Thursday. London Brent crude fell US50c to US$78.80 a barrel.
Nearly half Gulf oil production remained shut yesterday after the tropical depression which passed over at the weekend. But traders immediately began casting a wary eye at subtropical Storm Jerry, which formed over the Atlantic Ocean on Sunday. US forecasters said the storm was likely to strengthen.
A string of factors - including falling US crude stocks and the US interest-rate cut - pushed oil to a record high last week.
Supply jitters have resurfaced in Nigeria after a powerful Nigerian armed group threatened in an email to the media that it would resume attacks on oil facilities and kidnapping of foreigners, ending a four-month ceasefire.
Growing tensions between Iran and the West were also lending some support to prices.
- Reuters
