Reply #4: Oil rises in Asia on worries Gustav may strengthen

[ozymandius]

SINGAPORE - Oil prices rose above $119 a barrel Thursday in Asia on fears that Tropical Storm Gustav could strengthen on its way toward crude and natural gas rigs and refineries in the Gulf of Mexico.

Royal Dutch Shell PLC said it's evacuating some 300 workers from offshore Gulf rigs, while BP PLC was also removing personnel from the region that's home to about a quarter of U.S. crude production and much of its natural gas.

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Oil prices were also supported by a weaker dollar, which boosted the demand for oil among investors who buy commodities as a hedge against inflation. The euro gained to $1.4790 while the dollar fell to 108.82 yen.

In other Nymex trading, heating oil futures rose 1.73 cent to $3.279 a gallon, while gasoline prices gained 1.83 cent to $3.085 a gallon.

http://news.yahoo.com/s/ap/oil_prices