Oil Is Little Changed as Gustav Threatens U.S. Gulf Platforms

By Mark Shenk

Aug. 28 (Bloomberg) -- Crude oil was little changed after rising for three days on forecasts that Tropical Storm Gustav will threaten production platforms in the Gulf of Mexico.

Exxon Mobil Corp. is preparing refineries along the coast as Gustav approaches. The storm may strengthen to a hurricane today and enter the Gulf on Aug. 31, according to the National Hurricane Center. The region is home to 26 percent of U.S. oil output and 14 percent of the country's gas production.

``There's been no headline to explain prices coming off recently,'' said Tom Bentz, a broker at BNP Paribas in New York. ``This is probably just a short break. If the storm remains on this track, prices will start to rise again.''

Crude oil for October delivery rose 4 cents to $118.19 a barrel at 10:32 a.m. on the New York Mercantile Exchange. Prices are up 65 percent from a year ago. Oil has dropped 20 percent from a record $147.27 a barrel reached on July 11.

Brent crude oil for October settlement rose 15 cents to $116.39 a barrel on London's ICE Futures Europe exchange.

To contact the reporter on this story: Mark Shenk in New York at mshenk1@bloomberg.net.