Damage to oil platforms feared

[steve2470]

http://www.washingtonpost.com/wp-dyn/content/article/2005/08/29/AR2005082900561.html

Reuters
Monday, August 29, 2005; 5:58 PM

NEW YORK (Reuters) - Hurricane Katrina paralyzed the oil industry in the U.S. Gulf of Mexico on Monday, raising fears that damage to offshore platforms and pipelines could trigger a supply crunch in the world's largest energy consumer.

The hurricane, which slammed into New Orleans after plowing through the Gulf, shut nearly all the region's oil production, more than 80 percent of gas operations and forced eight refineries along the coast to shut -- sending crude oil prices to record highs above $70 per barrel.

Crude prices settled below the record at $67.20 a barrel, up $1.07, as dealers waited for word of damage to oil installations.

The U.S. Coast Guard said on Monday it received early reports of oil platforms and rigs adrift in the storm's wake. Shell <RDSa.L> <RDSb.L> said that two of its oil drilling rigs under contract were adrift.

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