Oil prices up on threat of possible storm

| 8/31/2007

Oil prices rose on Friday, Aug. 31, over concerns of a potential tropical storm forming in the Atlantic.

A weather system coming together 300 miles southeast of the Windward Islands – in the southeastern part of the Caribbean – was being monitored closely Friday morning and was forecast to possibly become a tropical depression by Friday afternoon.

Bloomberg reported that the weather news alone was enough to send oil prices rising 58 cents a barrel on the New York Mercantile Exchange. By mid-day, light sweet crude was trading at $73.36 a barrel.

Though that price is up from earlier in the week, it’s still a far cry from the record price above $78 a barrel set in July.

Diesel prices, meanwhile, remained fairly stable on Friday. ProMiles reported a national average of $2.90 a gallon, up a fraction of a penny from the day before.