Crude oil higher as Hurricane Dean strengthens

Crude oil prices rose on Friday as investors continued to worry about the effect that Hurricane Dean might have on oil production facilities in the Gulf of Mexico.

Royal Dutch Shell (LSE: RDSA, RDSB; NSYE: RDS.A, RDS.B) has reportedly closed two of its wells that might be in Dean’s path in the Gulf and evacuated workers.

Dean, currently a category 3 hurricane was said by hurricane forecasters to have the potential of reaching category 5 status, the strongest hurricane possible, by the time it reaches the Gulf next week.

September contracts for Brent crude was up 52 cents to $70.29 per barrel on the Intercontinental Exchange in London, while West Texas Intermediate crude for September delivery was 90 cents higher to $71.90 per barrel on the New York Mercantile Exchange.

Nymex Septebmer gasoline added 6 cents to $2.04 per gallon, while October heating oil gained 4 cents to $2.04 per gallon.

October natural gas was 13 cents higher to $7.14 per million British thermal units.