Crude oil rose after an oil terminal in Texas was shut by a fire and on forecasts that a government report will show a drop in US oil and fuel inventories.
Crude supplies probably dropped for a fifth week, according to a Bloomberg News survey of analysts. Kinder Morgan Energy Partners LP shut its Pasadena terminal in Texas, which connects refineries from along the Gulf of Mexico coast to pipelines serving the eastern US, after the blaze yesterday.
Crude oil for November delivery rose $1,77, or 1.7 per cent, to $108.38 a barrel at 10:40 am on the New York Mercantile Exchange. Prices are down 26 per cent from the record $147.27 a barrel reached on July 11.
Yesterday, oil fell 2.5 per cent to $106.61 a barrel as US lawmakers debated a $700 billion government bailout plan. Basket at $98.19
India’s crude oil basket rose $1.47 a barrel to $98.19 (about Rs 4,479) on Tuesday. The Indian basket has averaged $97.19 per barrel so far this month, down over 14 per cent from August’s average of $113.05.
