New Delhi: Cyclone Gonu that hit the Oman coastline on Thursday has shutdown oil installations in the country. While the storm caused little damage to Oman's relatively small oil fields, but raging seas prevented tankers from sailing from Omani ports leading to shutting down of the country's oil exports.
As a direct consequence of the storm, Brent crude touched a high of $71 per barrel but experts believe the storm shouldn't have a major impact on oil prices.
London Brent crude was off 11 cents at $70.34 a barrel by 1501GMT. US crude was down 18 cents at $65.43 a barrel.
Cyclone Gonu, the strongest storm to reach Oman in 30 years, disrupted the country’s crude exports of 650,000 barrels per day (bpd) for a second straight day.
But the storm weakened as it moved toward Iran early on Thursday.
Data showing U.S. refiners were struggling to boost summer fuel production and Cyclone Gonu's disruption of Omani oil and gas exports lent additional support to the market, keeping Brent crude within a dollar of late May's $71.80 high.
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