Oil prices rebound in Asian trade as Dean spares US energy facilities

SINGAPORE (AFP) - Crude oil prices were firmer in Asian trade Wednesday on bargain hunting after overnight falls on easing concerns as vital US energy facilities were spared from Hurricane Dean's fury, dealers said.

At 11:00 am (0300 GMT), New York's main contract, light sweet crude for October delivery rose 29 cents to 69.86 US dollars from 69.57 in late US trades Tuesday.

Brent North Sea crude for October delivery gained 17 cents to 68.86 dollars.
"It's a small bounce and I think some market participants might view this as a buying opportunity," said Victor Shum, an analyst with energy consultancy Purvin and Gertz consultancy.

Further sharp falls in the coming weeks were however unlikely as the six-month Atlantic hurricane season that started in June usually peaks from September onwards, dealers said.

"There is a good chance that crude oil futures won't fall a lot further even though it crashed through the psychological barrier of 70 dollars," said Shum.
Hurricane Dean on Tuesday swirled over the oil-rich Gulf of Mexico where it could regain some of the punch it lost after slamming onto Mexico's Caribbean coast as a monstrous category five storm.

Despite the rare intensity the storm lost much of its punch when it hit land before dawn Tuesday, there were no immediate reports of casualties or major damage in Mexico.

Dean had killed at least nine people during its earlier rampage across the Caribbean.
The International Energy Agency said it was slightly concerned about Dean's impact on Mexican oil production -- but believed its passage will not affect global oil markets.

"What could worry us a bit is that it will pass over Mexican production," William Ramsay, the deputy executive director of the IEA, told French radio FM.
"We are not very worried from the point of view of the global market" even if there are "tensions on the market due to the insufficiency of refining capacity and limited production by OPEC," he said.

He said of the two million barrels a day produced offshore in Mexico, "1.5 million barrels a day is on the route of the hurricane."