Oil heads for $71 as cyclone approaches Iran

Source: CCTV.com | 06-07-2007 12:40

Oil prices have surged after a cyclone swept through the Arabian Sea. Cyclone Gonu has affected oil production in Iran and United Arab Emirates. And the tropical storm continues to move towards Iran.

Cyclone Gonu, the strongest to reach Oman's coast since 1977, halted oil and gas exports for a second straight day. It has also disrupted production and loading.

A terminal, shipping 650,000 barrels of crude per day, has also temporarily closed its doors. The twister weakened as it moved through the Arabian Sea a major route for Gulf oil shipments. Oil prices surged towards 71 US dollars a barrel on Wednesday.

That's the highest price in nearly two weeks. U.S. military's Joint Typhoon Warning Center forecasts that the storm is expected to hit southeastern Iran over the next 36 hours. But may abate by then.

Editor:Du Xiaodan