Commodity Daily News

Baku-Tbilisi Pipeline May Resume Full Operations Within Days.

Crude Oil was little changed after rising yesterday to a $115.40 level as tropical storm Gustav formed in the Caribbean Sea, raising concerns it may threaten oil fields in the Gulf of Mexico. Fields in the Gulf of Mexico account for about 20% of U.S. oil output. Prices also rose after Russian lawmakers voted to recognize the independence of two breakaway Georgian regions, increasing the prospect of new tensions in the area. On the other hand, the Baku-Tbilisi-Ceyhan pipeline, which moves oil from Azerbaijan through Georgia to Turkey's Mediterranean coast, may resume full operations within days after a fire halted exports. This may definitely assist in bringing Oil prices further down.
U.S. Light Crude edged up 29 cents yesterday to $115.40 a barrel though it still remains more than $30 below an all-time high reached only a month ago.