Chicago Tribune: Hurricane disruptions spur oil loans to Shell, Placid (ShellNews.net)

Associated Press

Published September 25, 2004

The government has agreed to lend 1.7 million barrels of oil from the U.S. Strategic Petroleum Reserve to two companies whose refineries were running short of crude because of Hurricane Ivan, the Energy Department said Friday.

The department said 1.4 million barrels of crude would begin flowing Saturday to two Shell Oil refineries, in Texas and Louisiana, and another 300,000 barrels to Placid Refining Co. in Louisiana.

A number of additional oil swaps stemming from hurricane-related supply disruptions are under negotiation. Industry analysts anticipate that no more than 4 million barrels will be made available. The deals call for the oil to be paid back once supply problems go away.

Oil prices neared $49 a barrel Friday, capping a rise of 7 percent for the week, as Gulf of Mexico crude production rebounded at a slower-than-expected rate. Light crude for November delivery rose 42 cents to settle at a new high of $48.88 per barrel on the New York Mercantile Exchange. The price of oil is up 73 percent from a year ago.

http://www.chicagotribune.com/business/chi-0409250142sep25,1,7276492.story?coll=chi-business-hed