Mass Evacuations As Cyclone Gonu Hits Oman

Oil Prices Stable Amid Forecasts That Powerful Storm Is Heading For Iran

(AP)  Oman evacuated tens of thousands of people Wednesday, suspended oil exports and closed a major port as a weakening Cyclone Gonu roared toward the Strait of Hormuz — the world's major transport artery for Persian Gulf oil.

Oil markets were little changed in midday trading, but had the potential to increase as the storm — a rarity in the region — headed toward Iran.

As heavy rains lashed coastal areas of Oman, authorities closed all operations at the port of Sohar and evacuated 11,000 workers, port spokesman Dirk Jan De Vink said. Sohar's oil refinery and petrochemical plant remained running at very low levels, with authorities considering a total shutdown, he said.

Nasser bin Khamis al-Jashimi of the Ministry of Oil and Gas said rough seas prevented tankers from sailing from Omani ports, effectively halting its oil exports. But production was continuing everywhere except in one small field, he said.

In the United Arab Emirates port of Fujairah, the world's third-largest shipping fuel center, all refueling and ship-to-ship supply operations had been stopped, delaying the movement of tankers, officials said.

A few ships were still sailing through the nearby Strait of Hormuz, the transport route for two-fifths of the world's oil, despite 4- to 6-foot swells and strong winds, according to Suresh Nair of the Gulf Agency Co. shipping firm.

"About 17-21 million barrels a day of oil are coming out of the Persian Gulf. Even if only some of the tankers are delayed, that could reduce the supply of oil and increase prices," said Manouchehr Takin, an analyst at the Center for Global Energy Studies in London.

But Tim Evans, an analyst at Citigroup Global Markets, said the storm shouldn't have a major impact on prices because while it may delay oil shipments, they will eventually get to their destinations. Oil prices rose 25 cents to $65.86 a barrel in midday trading on the New York Mercantile Exchange after initially falling.

[kevboom]

I'm sure the oil companies will be kind and not take advantage of this opportunity to price gouge. Yeah, right. Hold onto your wallets folks. Here we go again.

[cmp271]

Let's hope it wipes out Iran.

Oil prices should not go up. There is plenty in storage. We are gouged every time the weather changes.

[weareone2]

It's interesting that while most news events are hyped up, recent tropical storm/hurricane news items have been downplayed. Cyclone Gonu is not just the strongest storm to hit this area in 60 years. Since 1945, there is no record of ANY type of tropical cyclone striking Iran. Similarly, Barry was referred to as the first tropical storm of the hurricane season, totally ignoring not one but two tropical storms that occurred off the Pacific coast a few weeks before the hurricane season even began. Also, Alvin in the Atlantic just before Barry.
I would think that the fact that there were three tropical storms before the season even officially began would have been especially newsworthy.
Surely it has nothing to do with Mobile/Exxon being a big source of advertising.

[weareone2]

Opps, that was Andrea in the Atlantic. Alvin & Barbara in the Pacific.

[infidel_us]

Allah willing, this will strike at the heart of the infidels currently occupying Iran. The sand will run red with the blood of our enemies.

Sincerely,

Geo. W. Bush

:)