* Tropical storm Alex shuts two Mexican oil terminals
* Shell, BP evacuate personnel from some U.S. platforms
* Coming Up: US May personal spending; 1230 GMT
* For a technical outlook on prices: []
(Adds Alex regains tropical storm strength, updates prices)
By Alejandro Barbajosa
SINGAPORE, June 28 (Reuters) - Oil touched its highest
price in almost eight weeks on Monday, trading near $79 as
tropical storm Alex forced Mexico to slow oil exports and some
offshore U.S. producers to evacuate platforms and curb output.
Japan's Nikkei average fell 0.45 percent on Monday, with
the dollar little changed against a basket of currencies,
despite an upbeat sign for the macroeconomic outlook on Friday
from U.S. consumer sentiment, which rose in June to its highest
since January 2008. []
Over the weekend Alex became the first named storm of the
2010 Atlantic hurricane season, which runs from June through
November and forecasters expect will be an active one, possibly
matching the record-breaking 2005 season.
"The first hurricane always heightens concern, and this
season is expected to be a bad one," said Jonathan Barratt,
managing director at Commodity Broking Services in Sydney.
"There is concern that production would be reduced."
U.S. crude for August <CLc1> rose as much as 52 cents, or
0.7 percent, to $79.38 a barrel, the highest intra-day price
since May 6, before gains withered as equities retreated . A
settlement above $79.30 would send prices to a higher range,
Barratt said.
The price was down 6 cents at $78.80 by 0554 GMT, after
rising 2.2 percent last week, partly on concern that Alex would
hit U.S. output in the northern part of the gulf. Prices are
still more than $8 lower than a 19-month peak in early May.
August ICE Brent crude <LCOc1> fell 1 cent to $78.11.
Mexico closed two of its main Gulf of Mexico oil exporting
terminals on Sunday as tropical, depression Alex moved over the
Yucatan peninsula, the government said.
The ports of Cayo Arcas and Dos Bocas handle combined
exports of more than 1.1 million barrels per day (bpd), or
about 80 percent of Mexico's shipments abroad, which mainly
head to U.S. refineries. []
But Mexican state-run oil company Pemex said on Sunday its
platforms in the Campeche Sound, which pump almost 2 million
bpd, were working normally, and there was no evacuation plan
yet. []
SOME U.S. GULF OUTPUT SHUT
Shell Oil <RDSa.L> shut subsea production at its Auger and
Brutus platforms in the Gulf of Mexico because of the threat
from Alex, a website posting said on Sunday. []
Personnel not essential to operations were evacuated from
BP's Atlantis, Mad Dog and Holstein platforms in the Gulf of
Mexico, a recorded telephone message said.
Alex regained tropical storm strength late on Sunday after
crossing the Yucatan peninsula as a tropical depression, the
U.S. National Hurricane Center said. It was heading towards the
Mexican state of Tamaulipas, which borders Texas, and was
expected to strengthen further into a hurricane.
[]
The U.S. National Oceanic and Atmospheric Administration
forecast 14 to 23 named storms for this year's season, with
eight to 14 developing into hurricanes. Three to seven of those
could be major Category 3 or above hurricanes. []
Large patches of thick oil from BP Plc's <BP.L> <BP.N> Gulf
of Mexico oil spill washed ashore in Mississippi for the first
time on Sunday, although Alex wasn't expected to interfere with
clean-up operations. []
SEEKING A BALANCE
OPEC secretary general Abdullah al-Badri said on Sunday
that he was comfortable with oil prices at their current level
and did not expect production levels to change between now and
October. []
World leaders agreed on Sunday to take different paths for
cutting budget deficits and making their banking systems safer,
a reflection of the fragile economic recovery in many
countries. []
"A balance has to be found that doesn't affect growth,"
Barratt said. "The perceived feeling is that controlling
deficits will restrain growth. Then oil demand growth won't be
as big as we were expecting."
The oil market's attention later in the week was set to
turn to June statistics of U.S. unemployment to be published on
Friday. Traders and investors are seeking evidence that the
world's largest economy and oil-consuming nation continues to
recover from the most severe recession of the post-war era.
Should the unemployment rate rise to 10 percent or higher,
"that will be a concern because that will affect oil demand,"
Barratt said.
Over-the-counter oil trading faces tighter rules. Last
Friday, U.S. lawmakers hammered out a historic overhaul of
financial regulations, handing President Barack Obama a major
domestic policy victory. [] []
Dozens of House Democrats had threatened to vote against a
ban on swaps trading on grounds the trade would move overseas.
Instead a compromise solution allows banks to stay involved
in foreign-exchange and interest-rate swaps dealing, which form
the bulk of the $615 trillion over-the-counter derivatives
market. They also could participate in gold and silver swaps
and derivatives designed to hedge banks' own risk.
But they would need to spin off dealing operations that
handle agricultural, energy and metal swaps, equity swaps and
uncleared credit default swaps.
(Editing by Ed Lane)
