BUSINESS
08/30/2011 09:03 EDT | Updated 10/30/2011 05:12 EDT

Oil just to US$89 a barrel on fears that Irene affected East Coast supplies

NEW YORK, N.Y. - Oil rose to US$89 a barrel Tuesday amid expectations that supplies will be tighter in the wake of hurricane Irene.

The storm forced several refineries and petroleum terminals to reduce production or shut down altogether.

East Coast markets may deal with smaller fuel supplies in coming weeks and traders were betting that oil and gasoline prices will rise.

Benchmark crude rose $1.68 to US$89 per barrel in morning trading on the New York Mercantile Exchange. Brent crude jumped $1.92 to US$113.80 in London.

Meanwhile, a private firm says consumer confidence in August was at its lowest since April 2009, something that could point to lower fuel demand.

Analysts said, however, that it might not affect prices until refineries are back to full speed.

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