Oil prices climbed for a fourth day today on worries a storm may gather force to become the worst threat to US offshore production since 2005.
The October US light crude future rose 48 cents to $118.63 a barrel climbing above a trendline that extended down from oil's all-time high of $147.27 a barrel hit on July 11.
Tropical Storm Gustav was downgraded from a hurricane this week but still poses a threat to 85 percent of US offshore oil production in the Gulf of Mexico, underpinning oil prices.
If Gustav hits the Gulf as a Category 3 hurricane it would be the biggest storm to hit the region's infrastructure since 2005.
Shell Oil Co, which has the largest offshore operations, said it may begin shutting output as early as today and expects to evacuate 1,300 workers by Saturday.
Asian stocks were little changed, but commodity-related shares received a boost from crude prices, which have recovered $7 since hitting a three-month low two weeks ago to trade above $118 a barrel.
Reuters