oil crisis worse that previously thought

"RWE Australian Business News, 08 Oct 2004
Sydney - Friday - October 8: (RWE Australian Business News) - US
financial markets at last showed real concern about the gravity of
energy prices on global economies after oil hit the $53 barrel level.
Investor reaction followed disclosure that the hurricane damage
to rigs in the Gulf of Mexico was much more serious than previously
believed.

Some of the Royal Dutch/Shell rigs won't be operational again
until next year, leaving a significant gap in ready supplies being used
for domestic purposes.

Insurance assessors have now revised the cost of Ivan and the
chain of other hurricanes to more than $26 billion.

Production out of the Gulf is still about 28 per cent below the
figure shown before the hurricanes forced a shutdown at most of the rigs
in the second week of September.

The price of November crude reached $53, but settled 65c higher
at $52.67 barrel on the New York Mercantile Exchange, the highest price
registered since futures trading began in 1983.

Investor confidence broke down after the latest oil advance,
reflected by Wall Street's Dow Jones finishing 115 points lower, the S&P
500 down 11, the Nasdaq composite 23 and 100 index 19. "