Crude oil prices rocketed to a new record high of above $70 a barrel
Crude oil prices rocketed to a new record high of above $70 a barrel Monday amid concerns about supply shortages in the gulf of Mexico due to hurricane Katrina.
Oil price soared to $70.8 a barrel on the New York Mercantile Exchange, after producers and refiners shut down operations ahead of the hurricane.
Seven southeast Louisiana refineries with a combined daily capacity of 1.45 million barrels per day were shut alongside the Louisiana Offshore Oil Port, a major crude importing facility.
OPEC expressed deep concerns over the buoyant prices.
Kuwaiti Minister of Energy and OPEC President Sheikh Ahmad al-Fahad al-Sabah said in a statement, "We are becoming increasingly concerned about the continuing high level of oil prices, which does not properly reflect the underlying fundamentals of the market,"
He noted that current supply exceeds demand, leading to a buildup in stocks and stocks of crude and distillates are above their seven-year average.