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August 04, 2008

Oil has streak of positive news

Oil supply is running on a streak of positive news after a lot of negative news pushed oil prices up.

Saudi Arabia apparently hit its target of 9.7 million barrels a day in July. There is a steady recovery in oil production from the Gulf of Mexico, where Hurricane Katrina demolished rigs and set back plans by months and in some cases years. BP's Thunder Horse platform, which was left a listing hulk by Katrina, finally began production last month and should be pumping 250,000 barrels a day by the end of next year. Thunder Horse is believed to be the largest oil find ever in the Gulf of Mexico. As oil companies return to their pre-Katrina schedules, Littell says, "we should see one or two of these (new Gulf of Mexico projects) every quarter through 2009."



Crude oil fell to a 13-week low amid speculation that Tropical Storm Edouard will miss most offshore oil facilities as it approaches the coast of Texas.

FURTHER READING
Oil mega projects for 2008 from wikipedia

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