What's moving the oil markets?

What's moving the oil markets?

Shell Friday said its current production in the Gulf of Mexico was about 160,000 boe/d but said that only 60% its pre-Hurricane Katrina 450,000 b/d output was expected to be on line by the fourth quarter of the year.

"The situation with respect to the remaining production, mainly from the Mars and Ursa area, Mensa, and Cognac, is still being assessed, but production from these facilities may not be feasible during the fourth quarter, depending on options available for recovery,"

(a Shell spokesman said following news that their current production in the Gulf of Mexico was about 160,000 boe/d compared to 450,000 boe/d before Hurricane Katrina struck).