Reply #63: Oil bounces back to close near $61

[ozymandius]

Hurricane concerns outweigh London blasts, supply data

August crude closed down 55 cents at $60.73 a barrel in New York, but that's well above $59.20, its lowest level of the day. Prices traded at record highs above $61 on Wednesday -- even climbing briefly above $62 a barrel overnight before word of the London blasts.

What had been Wednesday's lead story for the oil market -- Hurricane Dennis -- posed an increasing threat to oil and natural-gas operations in the Gulf of Mexico.

The storm situation "seems to be the thing weighing the most heavily on trader's minds right now and any major damage or further shutdowns could provide some very strong bullish momentum during trading," said Kevin Kerr, president of Kerr Trading International.

"It's as volatile as it gets right now and to say the markets are skittish is an understatement," he added.

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