Oil Prices Rise on Hurricane Dean, Oil Refinery Fire

Oil prices have risen to their current level of $71.80 on fears about hurricane dean and a fire at a US oil refinery.

Oil prices had fallen 9% on fear of a credit crunch coming as part of the current mortgage crisis.

At the moment, hurricane dean does not pose an immediate threat to oil production. However if hurricane dean hits certain areas in the Gulf where oil rigs are stations are positioned, we could see 30% of US oil output being affected.

Analyst Sam Kirtley of The Uranium Stocks Newsletter think that this volatility in oil prices is a reason to change the way in which we get energy, “Oil is a very unstable energy source whereas nuclear power is a more reliable option. With the added affect of fossil fuels running out, it will not be long before the world switches to nuclear power and then will require a great deal of uranium.”

Do you think hurricane dean will send oil prices much higher?