* U.S. crude falls toward $100, Brent hits 6-month low
* Saudi has no plans to cut output - Saudi-owned Al Hayat
* Dollar at one-year high versus euro
* Oil companies shut U.S. offshore production due to Ike
(Recasts, updates prices, adds Saudi report, changes dateline
from LONDON)
By Richard Valdmanis
NEW YORK, Sept 11 (Reuters) - Oil prices fell toward $100 on
Thursday, pulled lower by strength in the U.S. dollar, soft
global energy demand, and a report Saudi Arabia has no plans to
cut output despite OPEC's agreement this week to trim supply.
The losses were tempered somewhat by intensifying
disruptions in the United States caused by Hurricane Ike, which
paralyzed a quarter of U.S. crude oil production and more than
16 percent of its refining capacity. []
"This is a market that wants not only to test $100 a barrel
but ultimately break $100," said Tom Knight, trader at Truman
Arnold in Texarkana, Texas.
U.S. crude <CLc1> fell $1.71 to settle at $100.87 a barrel
after dipping as low as $100.10, the lowest level since early
April. London Brent <LCOc1> slipped $1.68 to $97.29 a barrel
after dropping to a six-month low of 96.99.
Downward pressure came from a rising U.S. dollar, which
scaled a one-year high against the euro. A stronger dollar can
weaken the purchasing power of buyers using other currencies --
adding momentum to already flagging global consumption.
Encouraging the losses, the Saudi-owned Al Hayat newspaper
said on Thursday that Saudi Arabia has no plans to cut oil
output at present unless customer demand falls.
The report came a day after OPEC members agreed to trim back
output following a steep decline in oil prices since the peak
above $147 a barrel hit in mid-July.
Limited support came from Hurricane Ike, which paralyzed
about a quarter of U.S. crude oil production and more than 16
percent of its fuel production capacity Thursday.
The storm gathered strength as it churned through the Gulf
of Mexico's warm waters on a track that would take it west of
the Houston energy hub by Saturday morning.
Experts said the storm could cause damage to some coastal
refineries, leaving them shut for weeks.
"Based on the size and projected strength of Ike, I fear the
potential exists for a massive storm surge ranging from 10 to 15
feet, maybe higher, along with heavy wave action that will
inundate and severely damage the huge refinery complex across
Galveston Bay and Texas City," said Jim Rouiller, meteorologist
for private forecaster Planalytics.
The U.S. energy sector has already been forced to evacuate
workers and batten down refineries at least four times so far
this summer due to storms that have pushed into the Gulf of
Mexico, starting with Hurricane Dolly in mid-July.
Storms this year have cut more than 15 million barrels of
crude oil production, nearly three-quarters of what the United
States consumes in a day, according to government data.
(Additional reporting by Ikuko Kao in London, Annika
Breidthardt in Singapore, editing by Matthew Lewis)
