Saturday, October 22 2005 10:07 Hrs (IST) - World Time -

New York: World oil prices ended higher after hitting three-month lows early in the day, getting a late lift amid concern over shutdown of some Gulf of Mexico production due to Hurricane Wilma.

New York's main contract, light sweet crude for delivery in December, rose 61 cents to US$ 60.63 per barrel in closing trades yesterday (Oct 21, 2005).

It earlier had fallen to US$ 59.15, the lowest level since July 28 and some 16 per cent below its historic high of US$ 70.85 on August 30.

In London, the price of Brent North Sea crude for December also turned higher in late trade, gaining 57 cents to close at US$ 58.48 a barrel.

The uptick came after news from the US Minerals Management Service that some 66 per cent of oil production had been shut in the Gulf of Mexico compared with 61 per cent a day earlier.

This surprised the market and highlighted fears about the unpredictable movement of the storm, which slammed into Mexico's Yucatan peninsula and was expected to move back to sea over the weekend.

The Government data showing a shutdown of some production because of Wilma "was really kind of unexpected," said Bill O'Grady, market analyst at AG Edwards.

O'Grady said there was some buying amid fear that the storm could take an unexpected turn over the weekend.

He said a certain amount of cover purchases 'make a lot of sense' even if most traders believe the storm will not affect US oil operations.