Oil prices rose again in morning trade in Asia, moving towards $60 a barrel, sparked by worries that two tropical storms could hit US crude production in the Gulf of Mexico.
Persistent concerns that refineries may struggle to meet demand during the fourth quarter as the northern hemisphere winter bites are also bolstering prices, they said.
New York's main contract, light sweet crude for August delivery was up 27 cents at $59.86 a barrel from its close of $59.59 in the US last night.
The US National Hurricane Center issued advisories yesterday for tropical storm Cindy, located in the central Gulf of Mexico, and tropical storm Dennis, in the eastern Caribbean Sea.
Tropical storms often develop into hurricanes. In September 2004, a series of hurricanes devastated Gulf of Mexico production, causing prices to rise sharply. The 2005 Atlantic Ocean hurricane season lasts from June 1st through November 30th.
New York crude futures struck an all-time high of $60.95 on June 27th, on concerns of a possible global supply shortage.
Prices then eased after an unexpected rise in US crude inventories last Wednesday and analysts said this week's US government report on oil stocks will be a major factor as to whether oil breaches $60 a barrel again.
Due to the Fourth of July holiday, the weekly US energy inventory data has been delayed from its usual Wednesday publication slot to tomorrow.